RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
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Realtor Statistics Show Evidence of Market Rebound
Warwick, RI, September 28, 2012…The median price of Rhode Island single family home sales remained relatively stable in August. At $204,850, the median price fell just .07 percent when compared to sales statistics pulled on the same date one year earlier. Realtor statistics released today also showed a 13 percent increase in sales activity, marking the 14th consecutive month of rising single family home sales. When adding those August sales which were recorded late, or after the mid-month pull date in 2011, the single family home median price rose by 2.2 percent. The Rhode Island Association of Realtors releases two statistical single family home sales reports each month. One compares data pulled at the same day each month for the current and prior year in order to historically track trends; the other compares monthly sales of the current year to all sales compiled for the same month in the year prior. Though the majority of sales are recorded within two weeks of the month end, a small percentage are recorded later which can alter the data slightly. "We've been seeing a strengthening market for some time now but August sales are evidence of a major turning point," said Jamie Moore, president of the Rhode Island Association of Realtors. "We may still experience a step or two backward in the months ahead but the forward momentum has clearly become more evident. The market is much stronger than it has been." The percentage of sales transacted through foreclosure or short sale has fallen dramatically since the beginning of the year which has contributed greatly to the healthier market. Distressed single family sales accounted for 35 percent of all sales in January and dropped to 20 percent by August. In August, 2011, distressed sales accounted for 24 percent of all sales. Another contributing factor in the market turnaround has been a reduction in the number of homes available for sale. Available inventory fell 17 percent from the prior year in August. It appears that the trend of decreasing inventory will continue as pending sales in August - those that are under contract but not yet closed - rose 25 percent from August, 2011. Pending sales are considered to be a key indicator of the current state of the market. There was a seven-month supply of single family homes available on the market in August. A six-month supply is considered a normal supply of inventory and indicates a market balanced between buyers and sellers. The condo market also experienced a turning point with rising median price and sales activity in August. The median condo price, which represents the point at which half the sales sold for more and half the sales sold for less, rose seven percent to $203,000 and sales activity increased five percent. Other indicators also followed the same trend as single family homes in the condo market: the percentage of distressed sales decreased seven percent, the number of condominiums available for sale fell 14 percent and pending sales increased five percent. There was a six-month supply of condominiums for sale in August. "Reasonable prices and low interest rates are making home ownership extremely attractive. Rents are on the rise and many people are finding that owning is cheaper than renting," said Moore. Multi-family sales statistics showed multi-family properties to be the only property type which experienced a decline in median price. The multi-family median price was down 19 percent from August, 2011 to $105,000. On the plus side, sales activity continued to increase, up 17 percent and the percentage of foreclosure and short sales fell slightly from just over 50 percent (50.5) in 2011 to just under 50 percent (49.6) this year. The number of multi-family properties available for sale fell 29 percent and pending sales increased 18 percent. Despite rising sales, an 11-month supply of multi-family properties remains on the market. "The multi-family median price rebounded significantly last year as investors entered the market once again, but it has subsided a bit in recent months. We should see prices begin to rise again with the depletion of excess inventory in the investor market," said Moore. "Overall, we're thrilled to see hard evidence that the market is recovering. Great pricing and low interest rates have really helped turn things around. Job availability and overly tight lending standards are the main constraints on the market right now. Still, even with those conditions, we’re definitely making headway," said Moore. |
Jamie Moore2012 REALTOR® August 2012 ------------------ August 2012 ----------- August 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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