RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Home Sales Up in DecemberWarwick, RI, January 19, 2012…The number of Rhode Island single-family homes sold last month increased 19 percent from December 2010. December was the sixth consecutive month of year over year increases. Pending sales - those sales under contract by not yet closed - also rose. Pending sales were up 17 percent from the year prior according to the Rhode Island Association of Realtors (RIAR). The boost in sales seems to be spurred by increased affordability for buyers owing to all time low interest rates of less than four percent and the extremely competitive pricing of the foreclosure and short sale market. Such lower-priced sales typically lower the overall median price of the market, which reflects the types and price of properties selling at the time, not the value of a particular property. A 56 percent increase in the number of foreclosure and short sales led to a drop in median price of 14 percent to $179,900. The median price of conventional sales, those not sold under duress, was $220,000. The Realtors offered a number of factors which could have caused the increased in sales made under financial distress. According to Jamie Moore, RIAR president, lenders have created more efficient systems to speed up the processing time for such sales so those that languished on the market due to a bank's inability to move them through to closing may finally be getting pushed through. "A push by lenders to get bank-owned properties and bad debt off their books may also have contributed," she said. Condo sales followed suit with sales increasing 40 percent last month compared to December, 2010. Pending sales were up three percent. A 114 percent increase in the number of distressed sales helped cause a nine percent drop in median price. The median price of all condos sold in December was $162,750. The median price of condos that were not sold under duress was $223,250. The number of sales of multi-family properties grew by seven percent in December and pending sales remained relatively stable, increasing .3 percent. Last month’s median price of $109,900 was 19 percent lower than the December, 2010 median price of $135,000. The median price of conventional sales only was $152,000. "We're happy to see sales rising again of their own accord," said Moore. "People are buying for no other reason than they recognize affordability in the market and that's a good sign. There is no tax incentive or other measures fueling these sales, simply a competitive marketplace and low interest rates. Eventually, the laws of supply and demand will create a balanced market again." Fourth quarter and yearend statistics will be available January 24, 2012. 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® December 2011 ------------------ December 2011 ----------- December 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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