Rhode Island Housing Market Hits Recovery Milestone in May
Warwick, RI - June 25, 2013... In real estate circles, a six-month supply of properties for sale is considered a healthy market which reflects a balancedalignment between demand created by buyers and supply of homes listed by sellers. After years of excess supply, the Rhode Island housing market finally hit that equilibrium in May in all categories of housing - single and multi-family homes, and condos. It appears that sharp declines in foreclosures and short sales have helped to alleviate the state’s prior housing woes.
“Though it took a while to get here, we knew we were heading toward this point. Now thousands of homeowners can breathe a sigh of relief as their home equity once again begins to rise,” said Victoria Doran, President of the Rhode Island Association of Realtors.
Single family home sales in the Ocean State rose 21 percent and showed a healthy six percent rise in median price in May to $207,500 from the year prior. Foreclosures and short sales continue to abate, accounting for 19 percent of all sales last month compared to 25 percent twelve months earlier. The number of single family homes available for sale dropped by 11 percent and sales under contract but not yet closed rose by six percent, indicating future momentum in the market.
Since May, 2012, condominium sales have increased 34 percent and median price has increased 26 percent to $215,000. Distressed sales dropped to 14 percent of all condo sales in May from 25 percent a year prior. Inventory fell ten percent while pending sales rose 13 percent.
Most of the same trends occurred in the multi-family market, which traditionally attracts investors, though activity was shown to have been more moderate. Sales rose one percent while the median price rose 12 percent to $129,000. Foreclosures and short sales accounted for less than one in three sales last month, down from one in two a year earlier. The number of multi-family listings fell 21 percent but pending sales also fell slightly, down one percent.
“We’re seeing an abundance of positive indicators,” said Doran. “A word of caution though - the scales haven’t tipped completely in the opposite direction. Sellers still need to be aware that they need to price their homes appropriately. Though interest rates have only risen slightly, they do affect home affordability. Sellers need to be cognizant of both interest rates and competitive pricing when determining a listing price for their properties if they want their homes to sell within a reasonable time frame.”
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Victoria Doran
2013 REALTOR®
State President
May 2013
Single Family Sales
By Town
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May 2013
Single Family Monthly
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May 2013
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May 2013
Condo Monthly
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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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