RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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REALTORS RELEASE AUGUST HOME SALESWarwick, RI, September 21, 2011… A look at August home sales shows an increase of single family home sales of 22.3 percent from last year and an increase in pending sales - those under contract but not yet closed- of 8.4 percent. The number of homes on the market also decreased since August 2010, down 6.3 percent according to data released today by the Rhode Island Association of Realtors. The numbers reflect an uptick in sales and rebalancing of supply and demand since the expiration of the federal tax credit in June of 2010. Sales fell dramatically in July, 2010, following the expiration of the tax credit incentive. In contrast however, the median price of single family home sales fell 6.9 percent to $205,000 from August, 2010. Despite the decrease from last summer, the single family median price has increased since the beginning of this year when it was $198,250. The increase in price has not traveled a steady path however. The single family median price has gone up and down, showing gains some months and losses in others. The number of single family sales through short sale or foreclosure also increased from the year prior for the second consecutive month reversing the trend of falling distressed sales which had occurred since November, 2009. A rise in distressed sales generally correlates to a decline in overall median price. The median price of homes that sold through conventional means - not short sale or foreclosure - was $230,000. The median price of traditional sales has remained relatively steady having begun the year at $229,000. "The good news is, home sales were much better this summer than last and housing is now very affordable. For the most part, sellers are pricing realistically and interest rates are at a 60-year low. The bad news is, not everyone is in a position to buy or even to refinance. Increasing fees and unreasonably tight underwriting standards are the norm," said Stephen Antoni, President of the Rhode Island Association of Realtors. "There are options out there for most buyers however, like banks that hold their own mortgages or FHA loans. They just need to know where to look," Antoni added. Sales of condominiums remained relatively constant, down just .97 percent in August. The median price declined 7.3 percent to $190,000 and the number of distressed sales increased 29 percent. The non-distressed median price for condominiums was $210,000, a 3.9 percent decline from the prior year. Multi-family sales lost the most ground, falling 6.8 percent in August, while median price fell 2.8 percent to $129,000. The number of distressed sales remained the same from the prior year and the non-distressed median price rose 3.3 percent to $172,000. Decreased sales in the multi-family sector could be a result of increased expenses and difficulty in obtaining financing for investment properties. Advancements in lending and distressed sale negotiations are vital to moving contracted properties to closing. "We believe the government has an opportunity to minimize the impact of distressed properties on local markets by expanding financing opportunities, bolstering loan modifications and short sales efforts, and enhancing the efficient disposition of REO properties. This will help stabilize home prices and neighborhoods and help support the broader economic recovery," said Ron Phipps, President of the National Association of Realtors and broker-president of Phipps Realty in Warwick, Rhode Island. For its part, the Rhode Island Association of Realtors, in cooperation with Fannie Mae, will soon offer a Short Sale Assistance Desk for Realtor members, to aid in reducing the offer to closing timeline. 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®
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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. |
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