RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Home Sales and Prices Rise in JuneWarwick, RI – July 22, 2010…The number of sales and median price of single family homes increased in June according to statistics released today by the Rhode Island Association of Realtors. Eight hundred and ninety-seven (897) single family homes were sold last month, far surpassing the 667 sales of the previous month. Sales were up 11 percent from the June 2009 level of 805. Median price rose five percent from a year ago to $220,000, and 10 percent from May’s median price of $199,900. With the exception of February of this year which saw a small decline in sales, the number of sales has increased year over year every month for the past 15 months and median price has increased since November 2009. While statistics show that sales volume historically jumps significantly from May to June, it appears that the tax credit originally set to expire in June was also a factor in larger than normal gains from month to month. "We typically see an increase in sales at the end of the spring buying season but this year we saw 35 percent more sales from May to June compared to a 21 percent jump last year. I think that’s ample evidence that the tax credit had an impact," said Karl Martone, President of the Rhode Island Association of Realtors (RIAR). "There have been some good things happening in regard to lending which should ease the difficulty people are having getting loans, and interest rates are still unbelievably low. That also helped to boost sales and should keep the momentum going," he added. In other categories, sales also increased in the condo market, up 23 percent from the year prior and 48 percent from May. Median price decreased six percent from June 2009 to $183,000, but was up .6 percent from May’s price of $181,925. Despite the tax credit, the multi-family market continued its return to normal sales volume following last year’s record breaking sales. Sales decreased 21 percent to 190 sales, from 242 the year prior. Sales in June 2009 were the highest recorded since 2007, when RIAR began tracking monthly, multi-family sales. Median price increased 53 percent to $127,000, the ninth consecutive month of increased multi-family prices. The foreclosure and short sale rate continues to decline in all three categories. The volume of single family distressed sales fell to 24 percent, down from 32 percent in June 0f 2009. The median price of non-distressed single family sales was $245,500. Distressed sales accounted for only 18 percent of all condo sales in June, down from 22 percent 12 months earlier. The median price of non-distressed condo sales was $201,000. In the multi-family market, the median price of conventional sales was $172,500. Short sales and foreclosures accounted for 61 percent of all sales last month, down from 80 percent the year prior. "Overall, conditions favor a continued return to a healthier market. Foreclosures and unemployment are down, positive appraisal changes are on the horizon, and interest rates can’t be beat. Plus, the extension of the home buyer tax credit to September 30th will enable more people to close on properties they signed contracts on earlier," said Martone. Buyers must have signed a purchase and sale contract dated before May 1, 2010 and must close by the end of September to qualify the tax credit extension. New rules governing appraisals from the Wall Street Reform and Consumer Protection Act will soon supersede the controversial Home Valuation Code of Conduct which was intended to protect appraisers from coercion by lenders. Many believe however, that the code has resulted in lenders relying more on appraisal management companies that employ appraisers with little experience in the markets in which they are asked to provide valuations, making it difficult for buyers to attain accurate valuations needed to close. Second quarter sales statistics will be released by the Rhode Island Association of Realtors on Tuesday, July 27. |
Karl Martone2010 REALTOR® June 2010 ------------------ June 2010 ------------------ June 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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