RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Realtors Report Price Gains in MayWarwick, RI, June 23, 2011… Rhode Island’s single family home market saw a five percent gain in median price in May from the prior year, and an 11 percent gain from the prior month. The May single family, median sales price was $210,000. The median price of multi-family properties rose as well, up 11 percent from May 2010. The condominium market remained relatively stable, with median price declining just one percent. “Prices have been trending up for the past year and a half, despite slipping backward a bit in March and April. We’re pleased to see that prices regained their momentum last month,” commented Stephen Antoni, President of the Rhode Island Association. Antoni explained that the 2011 price declines of March and April could be due to higher prices in the prior year encouraged by the impending expiration of the tax credit that was in place through April of 2010. May was the first month of this year when the bulk of sales were not compared to a market affected by the tax credit incentive. Sales remained down in all three categories, with ten percent fewer single family home sales in May of this year compared to May 2010. Multi-family sales were also down by six percent while condo sales dropped two percent. Distressed sales – those sold through short sale or after foreclosure – decreased among single and multi-family sales but rose for the second consecutive month in the condominium market. Distressed sales accounted for 30 percent of the overall home sales in May. The median price of conventional sales was 13 percent higher than their distressed counterparts among single family homes, 21 percent higher among multi-family properties and 33 percent higher among condos. The Realtors reported 6602 single family homes on the market last month, up 12 percent from May 2010. The inventory of homes for sale has not surpassed that number since August 2008. There is currently an 11 month supply of single family homes for sale. A six month supply typically reflects a normal market, balanced fairly equally between buyers and sellers. “The key to returning to a normal market is depleting the excess inventory of homes for sale. It’s great that we’re regaining values again but we need to see more sales which will result in fewer homes on the market. Then we’ll be able to achieve a balance between supply and demand,” said Antoni. “Unfortunately lending requirements have become overly stringent. If we want to see more sales, lenders will need to begin setting reasonable qualifying standards so that credit worthy people can buy homes,” he 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. Statistics represent Rhode Island sales only, not the RI Metropolitan Statistical Area of Rhode Island, Fall River and New Bedford. 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® May 2011 ------------------ May 2011 ----------- May 2011 ------------------ |
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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