RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Rhode Island Housing Market Sees Price Gains in 2010, Slower SalesWarwick, RI, January 26, 2011… According to home sales statistics released today by the Rhode Island Association of Realtors (RIAR), 2010 showed an upward trend in prices, reversing a downward trend that began in 2005. The median price of single family homes sold last year was $210,000, up five percent from 2009's median price of $199,400. The median price represents the midpoint of all sales, with half selling for more and half selling for less. Median price does not reflect the value of the same property over time, but rather the mix (size and type) of properties sold. Rhode Island bucked the trend of falling prices seen throughout much of the nation. However, single family sales fell in 2010, down 12 percent from 2009 sales – when sales showed strong increases from 2008 levels due to the initial November 30th deadline for the home sales tax credit. (At the end of 2009, the tax credit was extended to include sales under contract by April 2010.) Last year's sales of 6833 single family homes increased three percent from 2008's volume of 6648 sales, the last year that sales volume was not affected by the tax credit on home sales. For purposes of comparison, when analyzing sales data since 1990, the median number of home sales per year was 7600 sales. "Overall, we're pleased that we seem to be headed in the right direction," commented Stephen Antoni, RIAR president. "Median price has increased every month since November 2009 and sales activity is beginning to regain its footing since beginning to fall in the summer following the expiration of the tax credit," he said. The rise in median price is likely owed to a decline in distressed sales last year, as well as more reasonable lending standards in the jumbo mortgage market and an added tax credit incentive for move up buyers during the tax credit extension. The number of distressed sales among single family homes – foreclosures and short sales – dropped 31 percent from 2009. Throughout most of the country, median prices have been decreasing due to increased distressed sales. Rhode Island is now finding the opposite to be true. The state was one of the first to enter the foreclosure crisis and now appears to be ahead of the curve in the recovery. In Rhode Island, the number of distressed sales, which typically sell in the lower price ranges, are decreasing while sales of higher priced properties selling through conventional means are increasing, leading to higher median prices. "We've said all along that the key to the recovery in the housing market is to get the distressed sales out of the system. That seems to be happening. Despite reports of increased foreclosure filings, people seem to be steering their way out of the foreclosure or short sale process, whether through loan modifications or other means," said Antoni. The multi-family market saw a sharp increase in price of 35 percent to $121,900 owing to a level of distressed sales which fell by nearly half in 2010. In 2009, 1754 multi-family properties sold through short sale or foreclosure; in 2010 that number declined to 926 properties. As prices climbed and low end inventory was depleted, multi-family sales slowed 32 percent to 1565 sales from 2286 in 2009. However, since 1990, Realtor data shows the median number of sales of multi-family sales was also 1565, indicating that the pace of 2010 sales appears to be within the normal range. The median price of condominiums rose five percent last year to $187,000, up from $179,000 in 2009. The tax credit seemed to do little to boost the condo market as both median price and sales remain below 2008 levels (of 1210 and $212,700, respectively). Many believe that better affordability of single family homes in recent years steered 'would-be' condo buyers to the single family market. Condo sales declined five percent from 2009 to 1144 sales last year. The median number of annual condo sales since 1990 is 1207. The number of distressed sales fell 23 percent. Price gains in the fourth quarter were reflective of the increase during the entire year. From October through December, median price rose five percent among single family and condominium sales from the year prior and by 17 percent for multi-family sales. Sales activity slowed markedly in the final months of the year however. Single family homes sold fell 27 percent, multi-family sales dropped 37 percent and condo sales fell 32 percent. The slowdown in sales began in July following the expiration of the tax credit. RIAR reported that the number of properties on the market remains high among the three categories. There is nearly a nine-month supply of single family homes on the market, just under an eight-month supply of multi-family properties, nearly a 13-month supply of condominiums for sale. A six-month supply typically indicates a balanced market, while more than that indicates a market more favorable to buyers. "We're cautiously optimistic," said Antoni. "Affordable prices, low interest rates, rising equity and decreasing distressed sales…they're all good signs and we seem to be once again, ahead of the national curve. We didn't get into this overnight so it's taking a while to regain our momentum, but I think we're definitely on the right track. Still, the key to total recovery will be getting rid of the oversupply and continuing to deplete our distressed inventory. It's also important to remember that though it's a buyer's market, when you sell, if you're buying something else, you're going to get a great deal on the other end," he said. 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® 2010 Year End ----------- 2010 Year End ----------- 2010 Year End ----------- 4th Quarter 2009 ----------- 4th Quarter 2009 ----------- |
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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