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Housing Prices and Sales Increase in First Quarter
Thursday, April 22, 2010

According to statistics released today by the Rhode Island Association of Realtors, the state’s housing market showed strong signs of rebounding in the first quarter.  Sales of single family homes were up 8.5 percent from first quarter of 2009 and median price rose 7.2 percent, from $180,000 last year to $193,000 this year.  The number of distressed sales decreased to 36 percent of all sales, down from 48 percent the year prior. The price of single family properties not selling through short sale or foreclosure was $225,000.

“We’re pleased with what we’ve been seeing. Consumer confidence is growing and the tax credit has helped as well, especially in March when sales increased almost 20 percent. It’s still critically important for sellers to be realistic in pricing in order to keep this sales momentum going and achieve a balanced market,” commented Karl Martone, President of the Rhode Island Association of Realtors. 
At the end of March, Rhode Island had a ten-month supply of homes for sale.  Historically, a six-month supply has indicated an equal balance between supply and demand.  Sales statistics show a higher inventory of single family homes for sale in the first quarter compared to a year ago, most likely from sellers eager to attract buyers taking advantage of the tax credit.

The condo market also saw increased sales of 13 percent, with a slight growth of one percent in median price to $177,000.  Twenty-five percent of all sales were sold through short sale or foreclosure compared to 32 percent a year ago.  The median price of non-distressed condo sales was $209,000.

“Double digit growth in sales volume is important in the condo market because we still have an abundance of units for sale.  Rhode Island had a 16-month supply of condos for sale at the end of March,” Martone explained. 

The multi-family market was the only category to see a drop in sales in the first quarter, down 26.3 percent from January through March 2009.  Median price however, rose substantially, up 34 percent from $80,000 in the first quarter of 2009 to $107,150 this year.  Prices bottomed out in the multi-family market last year as foreclosures and short sales flooded the market.  Eight-six percent of all multi-family sales in the first quarter of 2009 occurred through foreclosure or short sale. That statistic fell to 67 percent this year.  March monthly sales data shows that number dropping as low as 63 percent and median price hitting $120,000 with a seven-month supply of properties for sale.

“Clearly, the multi-family market is stabilizing in Rhode Island.  We saw a feeding frenzy last year when prices were plummeting but it appears that the fire sale mentality if over. We’re getting back to business as usual,” said Martone.

Tax credits of up to $8000 for those who haven’t owned a home in three years and $6500 for move up buyers are available until the end of this month. Purchase and sales agreements must be signed by April 30th and closings must be held by June 30th to qualify.  Eligibility requirements can be found on RIliving.com.

Realtor statistics are based on home sales transacted with a Realtor, approximately 96 percent of all Rhode Island sales.  Data from the Rhode Island Association of Realtors includes Rhode Island sales only while a majority of sales data reported from other sources include sales from Rhode Island, Fall River and New Bedford, an important distinction in determining an accurate gauge in how sales are faring locally. Realtor sales statistics reflect the month closing papers are signed and funds are transferred, not the date data is recorded at the town hall, which can also cause variations in statistical reports.