RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
February Home Sales Decline Offset by Price IncreaseWarwick, RI - March 23, 2010…February sales statistics released today by the Rhode Island Association of Realtors showed sales of existing single family homes down for the first time since January, 2009. Sales declined 2.7 percent since February 2009, from 401 last year to 390 last month. Pending sales however, those under contract but not yet closed, were up 8.9 percent, indicating that the dip may be just an anomaly in an otherwise steady uphill climb. The median price of single family homes continued to increase however, for the fourth consecutive month, rising 2.7 percent from February 2009 to $189,950 last month. The median price indicates the mid-range sales price of homes sold with half of the homes selling for more and half selling for less. Inventory remains quite stable with 5200 single family homes on the market, six more than last year. The percentage of distressed sales decreased from 42.6 percent of all single family sales last year to 40.8 percent this year. The price of conventional sales only- those not selling though foreclosure or short sale - was $222,500. “We saw a flurry of activity just prior to the anticipated end of the first time home buyer tax credit last November and now that it’s been extended, we’re anticipating more activity prior to its new April 30th deadline. Aside from the fact that first quarter typically shows less sales activity, I believe that the lull we saw in February this year was just a short reprieve between the two deadlines. We’re also very encouraged that prices are gradually continuing to rise,” commented Karl Martone, President of the Rhode Island Association of Realtors. Up to $8000 in tax credits are available to eligible buyers who haven’t owned a home in three or more years and up to $6500 in tax credits are available to eligible buyers who have lived in their previous home for five consecutive years of the last eight years. Purchase and sale contracts must be signed by the end of April, 2010 and closings must take place by June 30th. Despite the rise in prices, Martone explained that the 40 percent foreclosure and short sale rate is still keeping prices relatively low. “If you have the means to buy, home affordability is at its best right now. Prices and interest rates are low and the tax credit is an added plus for those who qualify but these conditions won’t last forever,” he said. Several recent reports place Rhode Island as a leader in price appreciation in recent months. Most notably, Rhode Island rose to the top of the highest performing markets with a 6.1 percent quarterly price change for the quarter including December 2009 through February 2010 according to Clear Capital’s Home Data Index. Condo sales also saw a decrease in sales accompanied by an increase in price year to year. Fifty-eight condos sold in February of this year compared to 65 last year, down 10.8 percent, but the median price rose 12.8 percent to $212,000 from $188,000. Just over a quarter (25.9) percent of all condo sales sold though short sale or foreclosure. The median price of conventional sales only was $223,800. Pending sales rose 14.5 percent while inventory dropped 10.1 percent, both good signs for the future of the condo market. The same trend held fast in the multi-family category, with sales declining 19.8 percent and median price increasing 23.4 percent from February 2009 to February this year. The rate of foreclosures and short sales fell, from 84.6 percent of all sales last year to 71.5 percent this year. The median price of those that did not involve short sale or foreclosure was $163,000 compared to the all inclusive median price of $98,750. Variations in sales data collection methods may provide discrepancy is data interpretation. Realtor statistics include all Realtor-assisted property transactions, the vast majority of which are generally recorded with the State-Wide Multiple Listing Services within two days of closing. Realtor transactions account for approximately 96 percent of all sales and exclude non-arms length sales such as discounted sales between family members. |
Karl Martone2010 REALTOR® February 2010 ------------------ February 2010 ------------------ February 2010 ------------------ February 2010
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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. |
