RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Prices Rise in July, Sales DropWarwick, RI, August 27, 2010… The number of single family home sales fell markedly in July, down 34 percent from July 2009, though the median price rose eight percent to $227,500 last month from $210,000 a year prior. The figures released today by the Rhode Island Association of Realtors (RIAR) also showed the number of distressed sales – foreclosures and short sales – down 54 percent from a year ago. The median price of non-distressed sales was $257,250. July marks only the second month of decreased sales in the past 16 months. (February showed a small dip of less than three percent.) The median price of single family homes has risen every month since last November. “Now that the tax credit deadline is past, we may see a lull for a few months but the fact remains that interest rates haven’t been this low since record keeping began and the state’s jobless rate is declining. Rhode Island sales have consistently bucked the national trend – first by being the first to enter the housing boom and then the first to enter the recovery. Our data has shown strong signs of steady recovery over several months and we see no reason for a substantial, long term change in that direction,” said Karl Martone, RIAR President. (The federal tax credits of $8000 for those who haven’t owned a home in three or more years, or $6500 for buyers who have owned a home for five consecutive years of the eight years prior to purchase, required signed purchase and sales contracts by April 30, 2010. However, that deadline is extended until April 30, 2011 for certain military personnel.) A similar decrease in sales was seen during the immediate quarter following the first anticipated expiration of the tax credit which was initially scheduled for November 30, 2009. Sales went from being up 61 percent in November 2009 to down nearly 3 percent three months later (February). Likewise, sales from April, the month in which purchase and sales agreements had to be signed to qualify for the extended tax credit, were up 26 percent. July’s 34 percent decline, therefore shows a similar downward trend. Condo sales were down 18 percent in July. Ninety-nine condos sold last month compared to 120 in July 2009. The median price however, rose 35 percent to $230,000 from $170,000. The number of distressed sales fell 36 percent and the median price of non-distressed sales was $264,900. Sales in the multi-family market showed the largest decline, down 49 percent, the largest drop this year. The median price however, continued to increase, up 27 percent from the year prior, to $127,000. The number of distressed sales dropped 57 percent. The median price of non-distressed sales was $173,750. Sales also dropped in all three categories from June to July, though a trend of falling sales in the summer months is typical. Prices rose from May to June among single family and condo sales and remained the same among multi-family sales. “Home affordability is extremely favorable right now. Thirty years ago, those earning an average household income and buying a median priced home would spend about 50 percent of their income on housing. Today, they would spend about 20 percent. The key to this market is consumer confidence so it’s important that they know these facts,” explained Martone. New appraisal guidelines aimed at expediting the closing process and more opportunities to acquire jumbo loans will likely also support fall sales. |
Karl Martone2010 REALTOR® July 2010 ------------------ July 2010 ------------------ July 2010 ------------------ |
About the Rhode Island Association of REALTORS®The Rhode Island Association of REALTORS®, one of the largest trade organizations in Rhode Island with more than 5,000 members in nearly 1,000 offices, has been serving Rhode Islanders since 1948. Advocating for Rhode Island's property owners, the Rhode Island Association of REALTORS® provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. Last year, RI Realtors transacted $6.9 billion in residential real estate sales and $7.1 billion in total sales and rentals including commercial transactions. The Association is one of more than 1,500 boards and associations that comprise the National Association of REALTORS® (NAR). The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industries and who subscribe to a strict Code of Ethics. REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. |
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