RI Home Sales Up in First Quarter

RHODE ISLAND ASSOCIATION OF REALTORS®, INC.

"The Voice of Real Estate in Rhode Island"
Serving Rhode Islanders Since 1948
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Press Release

Contact: Kerry Park
Ph: 401-432-6948
Email: kerry@rirealtors.org



RI Home Sales Up in First Quarter Warwick, RI, May 2, 2012... Rhode Island's housing market showed signs of recovery in the first quarter with single family home sales rising 22 percent from last year. Fifteen hundred (1500) single family homes were sold last quarter, the highest number of first quarter sales since 2007. The number of single family sales sold through foreclosure or short sale accounted for 34 percent of all sales, having increased 32 percent from the year prior. The prevalence of these distressed sales led to a decrease in median price of overall single family resales. Single family homes sold for a median price of $173,250 last quarter, down from $195,000 in the first quarter of 2011. Foreclosure and short sales, which generally occur in the lower priced market, tend to drag down the median price. The first quarter single family median price of convention sales, which exclude distressed sales, was $215,000, 24 percent more than the median price of all sales including foreclosure and short sales. Though Rhode Island foreclosure sales are on the upswing, industry researcher Realty Trac recently reported that foreclosure filings decreased during the first quarter compared to the same time period in 2011. That trend indicates that foreclosure inventory could be diminishing. Newport, Jamestown, Charlestown and Westerly saw an increase in both sales volume and median price of single family home sales in the first quarter, indicating that the second home market may be coming to life. Realtors are concerned that a proposal to impose a 13 percent tax on short term private home rentals could dampen Rhode Island’s housing market, particularly month-to-month, student rentals, and the second home market, believed to be a substantial component of the state's housing supply. "We're vigorously fighting the Governor’s proposal to tax homeowners if they rent their home out for fifteen days or more a year. A lot of our homeowners depend on that income to make their mortgage payments on their second homes, or in some cases, their only home. They already pay income and sales tax. An additional tax will certainly discourage investment in Rhode Island and that's the last thing we want to see now," said Jamie Moore, President of the Rhode Island Association of Realtors. Rural areas like North Smithfield, Foster, Burrillville, North Kingstown, Coventry and West Greenwich, also saw both rising sales and prices in the single family home market. The multi-family market saw a 13 percent increase in sales and a four percent drop in median price, from $120,000 to $115,000. Like the single family market, prices were affected by an increase in the number of distressed sales year to year, of eight percent. Fifty-five percent of all multi-family sales involved distressed properties from January through March. Condominium sales rose by almost four percent while median price fell 21 percent to $135,000. The number of distressed condominium sales increased 51 percent from the previous year and accounted for 35 percent of all condo sales in the first quarter. "We'll see more price stabilization as the distressed properties are sold. We're getting there, little by little. Fellow Realtors statewide are telling me that they're seeing more activity in the market. They're feeling more confident and it appears that consumers are as well," commented Moore. 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.	Jamie Moore 2012 REALTOR® State President 1st Quarter 2012 & 2011 Comparison Single Family ----------- 1st Quarter 2012 & 2011 Comparison Multi-Family ----------- 1st Quarter 2012 & 2011 Comparison Condominium
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.