RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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REALTORS® Release Third Quarter & September Housing SalesWarwick, RI, October 25, 2011…Today the Rhode Island Association of Realtors (RIAR) issued its third quarter sales data which showed single family home sales up 17 percent from the same period last year. Sales activity has been slowly increasing since the dramatic slowdown following the extended expiration of the homebuyer tax credit in July, 2010. While sellers saw an uptick in activity, median price fell eight percent to $202,250, due to a 29 percent increase in single family distressed sales - those homes sold through foreclosure or short sale. An increased number of distressed sales typically lowers the overall median price of the market because such sales often occur at bargain prices and predominantly in the lower end bracket. Median price does not characterize value of the same house over time, but is an indication of the size and type of homes selling at the time. The median is the mid-point of sales with half the homes selling for more and half selling for less. RIAR reported that the median price of single family home sales not selling through distressed means was $235,000. "We're getting things moving again and that's important. When homes sell, supply diminishes which is what usually drives pricing. In the past few months though, sales through short sales and foreclosures increased for the first time in over a year. The good news is that we're much better at getting them through to closing than we were a few years ago," said Stephen Antoni, 2011 President of the Rhode Island Association of Realtors. RIAR reported that the supply of properties for sale dropped each month in the third quarter. "People are feeling a general malaise and some are voluntarily making the choice to walk away from their home and the money they've already put into it. They should realize that the real estate market runs in cycles. What goes up, goes down and vice versa. Real estate has always been a great long term investment," he commented. Third quarter sales of condominiums followed the same path as single family sales with closings up four percent from the prior year and median price down seven percent to $200,000. There were eight more distressed sales in the third quarter of this year compared to last, an increase of 14 percent. The median price of conventional condo sales was $240,000. By contrast, sales of multi-family properties fell four percent. It appears that the multi-family market, the most prevalent for the investment market, has slowed owing to a decrease in lower priced distressed sales. Multi-family properties sold through short sale or foreclosure fell by nine percent in the third quarter and median decreased marginally, down only two percent to $125,000 from $127,500. The median price of non-distressed sales was $166,000. The quarter ended with September single family home sales rising eight percent and median price falling seven percent to $197,750. Distressed sales rose 27 percent. Likewise, multi-family properties saw an eight percent increase in sales and seven percent price drop, to $118,575. Distressed sales in the multi-family market however, fell by six percent. September condo sales also rose eight percent from the year prior but median price dropped 11 percent to $182,000. Seventeen distressed sales occurred in September, 2010, compared to 29 last month. RIAR is urging consumers to contact their congressional delegation to oppose possible changes to the mortgage interest deduction (MID) which will be up for debate by Congress in the near future. According to economists from the National Association of Realtors (NAR), elimination of the MID could devalue housing another 15 percent. "There are tremendous benefits to home ownership. It drives the economy. Every home sold creates two jobs. It builds communities and wealth. In fact the average net worth of a home owner is more than $180,000 while the average net worth of a renter is $4600. We can’t afford to do anything that strips away the incentive to own a home," said Antoni. The mortgage interest deduction has been in effect since 1913 and saves the average Rhode Islander nearly $3000 each year. RIAR has posted talking points and contact information for Rhode Island's representatives in Washington on www.riliving.com/mid. 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® 3rd Quarter 2011 ----------- 3rd Quarter & 2010 Comparison ----------- 3rd Quarter 2011 ----------- September 2011 ------------------ September 2011 ----------- September 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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