RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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2012 Sales Continue to Head UpwardWarwick, RI, February 21, 2012…Sales statistics released today by the Rhode Island Association of REALTORS® (RIAR), show home sales up 16 percent in January from the year prior. Four hundred and fifty-four (454) existing single family homes sold last month, more sales activity than any other January since 2007. "We're glad to see properties changing hands because that indicates that we're pushing through this struggling market. Affordable prices and the lowest interest rates ever are translating into a strong motivator for buyers," said Jamie Moore, 2012 RIAR President. "We've been seeing sales rise and the number of properties on the market decrease since last summer. Historically, we've seen that prices begin to rise after a period of increased sales." Affordable pricing, in part the result of an annual 60 percent increase in the number of foreclosure and short sales, is helping to clear properties from the market. More efficient processing of foreclosures and short sales by lenders also seems to be a major factor in the number of increased sales. The percentage of distressed sales has increased during the past three months, while industry researcher, CoreLogic, reported decreased foreclosure filings in the Providence Metropolitan Statistical Area in November and December, 2011. (January is yet to be released.). Foreclosure filings refer to the entry point of foreclosure proceedings, when owners are notified that they are behind in their payments and foreclosure proceedings begin. Distressed sales, on the other hand, refer to the end of the foreclosure process, when such sales are removed from the market through closings. Fewer filings and more sales indicate a growing depletion of the distressed market. “Moving the foreclosure and short sale inventory through to closing is the key to a market turnaround and we seem to be doing that. We’re on the right path,” commented Moore. The median price of single family homes sold in January was $172,750, down 13 percent from the prior year. The median price of non-distressed sales was $215,250. Condominium sales also rose, up nearly four percent, since January, 2011 while median price fell 25 percent to $155,450. The number of condo foreclosure and short sales grew 38 percent and the non-distressed median price fell 17 percent from the prior year to $193,750. RIAR explained that the sale of low end condominiums could be attributed to a rise in home ownership in the under 25 demographic, as reported by the National Association of Realtors. The 25 years of age and under category was the only age bracket that saw an increase in home ownership in recent years, resulting from the increased affordability of owning compared to renting. Condominium living has historically been appealing to first time homebuyers due to ease of maintenance and affordability. The multi-family market saw a significant increase in sales of 28 percent with a 38 percent increase in the number of foreclosure and short sales from year to year. A larger increase in sales has not been recorded since August, 2009, when 77 percent of the properties sold were foreclosures or short sales. Last month, 60 percent of all multi-family sales were sold under financial duress. The median price fell 18 percent to $110,100 and the median price of non-distressed sales was $149,900. Pending sales rose in the single and multi-family market by 16 and 1 percent respectively, while falling in the condo market by 3 percent. In general, pending sales, or those under contract but not yet closed, have shown an upward trend in all three categories since last summer. Pending sales are believed to be the most current indicator of the housing market. 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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Jamie Moore2012 REALTOR® January 2012 ------------------ January 2012 ----------- January 2012 ------------------ |
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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