RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Realtors Release Statistics for First Half of 2011Warwick, RI, August 5, 2011… According to data from the Rhode Island Association of Realtors, single family home sales during the first six months of this year showed a median sales price of $200,000, down just one percent from January through June last year, but up six percent from the 2009 median price of $189,000. Sales were down 17 percent from last year and seven percent lower than 2009. The comparisons to 2009 are particularly relevant this year because sales in 2010 were impacted by the federal tax credit which offered a tremendous incentive for home buyers, particularly through the first half of the year. "We typically compare sales to those from the same time last year but with a flood of buyers entering the market in the first half of 2010 to take advantage of the credit, we expected this year's sales to pale by comparison. We anticipate now that we're moving into 'post tax credit' territory when compared to last year, we'll begin to see smaller sales declines and perhaps even increases in activity if people can access reasonable loans,"commented Stephen Antoni, President of the Rhode Island Association of Realtors. At the end of the second quarter, pending sales, those under contract but not yet closed, rose for the first time since February, 2010. An increase in pending sales typically indicates that closed sales will increase in the coming months. Antoni advised that a variety of loans for pending sales can be found at community banks and RI Housing if qualified consumers are finding that overly stringent guidelines through conventional lenders are making it difficult to obtain financing. "We went from one extreme to the other in terms of qualifying for a loan, but there are options out there for credit worthy buyers. You just need to know where to look," he commented. The multi-family market saw an increase of four percent in median price since 2010 and a 50 percent increase since 2009. The median price of multi-family sales in the first half of this year was $120,000. Sales activity however, has dropped markedly, down 33 percent in the past year and 50 percent from 2009 when rampant distressed sales fueled the market. The drop in sales signifies an end to the bargain induced buying frenzy that began a few years ago. When comparing January through June sales of condominiums, both price and sales were down from the same months in 2010 and 2009. The 2011 median sales price of $172,750 was three percent lower than the median sales price in 2010 and 2011. Condo sales this year were 12 percent less than 2010 but eight percent more than 2009. The Realtor association cautioned that uncertainty about decisions in Washington surrounding the reduction or elimination of the mortgage interest deduction (MID) may affect future home sale activity. At a recent forum hosted by the Tax Policy Center, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), said that reduction or elimination of the MID equates to a tax increase for homeowners, who already pay 80 to 90 percent of U.S. taxes. "The mortgage interest deduction is vital to the stability of the American housing market and economy. The MID facilitates home ownership by reducing the carrying costs of owning a home and it makes a real difference to hard working, middle class families," Yun said. Antoni urged Rhode Islanders to oppose changes to the MID by contacting Congressmen Langevin and Cicillini and Senators Reed and Whitehouse. "Eliminating incentives for home buying will derail progress in the housing market's recovery. And, too many people depend on the benefits created by home ownership. To change the game now would pull the rug out from under them," Antoni said. Statistics from the Rhode Island Association of Realtors relay actual sales data collected through the State-Wide Multiple Listing Service only. They do not include sales transacted through non-Realtor members or properties sold by owner. The data is not seasonally adjusted or benchmarked in any way. Note: Information is provided by State-Wide Multiple Listing Service, Inc. Readers are cautioned that the median sales price --- with half the prices higher and half lower --- generally reflects the quality and the mix (type and size) of the properties being sold at the time and is not a true measure of home values.
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Stephen Antoni2011 REALTOR®
Single Family Home Sales ----------- Multi-Family Home Sales ----------- |
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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