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April Home Sales Show Double Digit Increase
Tuesday, May 25, 2010

Warwick, RI – May 25, 2010…April sales statistics released today by the Rhode Island Association of Realtors showed sales of existing single family homes up 26 percent, from 529 sales in April 2009 to 668 sales last month.  Single family home sales have seen increases in sales volume for the past 13 months with the exception of February of this year which saw a minimal decline.  Median price was up for the sixth consecutive month, rising 12 percent to $205,000 from $183,000 12 months earlier.  The median price indicates the mid-range sales price of homes sold with half of the homes selling for more and half selling for less.  The number of distressed sales – those selling through short sale or foreclosure – fell  11 percent, to 30 percent of all sales last month from 42 percent of all sales in April 2009.  The price of conventional sales only- those not selling though foreclosure or short sale - was $235,000. 

“The tax credit that expired at the end of April seemed to have a solid impact on the market. Sales were off the charts for single family homes and prices rose as well, probably in large part to the credit that was available to move-up buyers who had previously owned a home,” commented Karl Martone, President of the Rhode Island Association of Realtors. 

The inventory of homes for sale rose nearly eight percent to 5696 last month, leading to an 8.5 month-supply of single family homes on the market.  Despite the increase, supply remains far below its most recent peak of 6750 in July of 2008 when there was a 9.2-months supply of homes available.  A six-month supply is considered a market balanced between supply and demand.

The condominium market saw a 47 percent jump in sales, from 75 units sold in April 2009 to 110 sold last month.  The median price however, decreased 15 percent, from $198,000 to $168,000. The median price of non-distressed condo sales was $188,500. Distressed sales accounted for 18 percent of condo sales in April 2010 compared to 23 percent in April 2009.

“We’re seeing the condominium market follow the same trajectory that the multi-family market followed a few months back.  Great deals drove the market and helped draw down excess inventory.  Now supply and demand is coming back into balance in the multi-family market and we expect the same for the condo market in the months ahead,” said Martone.  Currently, there is nearly a 14-month supply of condominiums on the market.

Multi-family sales have slowed considerably, down 38 percent, as prices have risen back to levels not seen since 2008.  In April of this year, the median price of multi-family property sales was $123,750 compared to $69,900 twelve months earlier.  The price of those not selling through short sale or foreclosure was $162,500.

The number of distressed sales in the multi-family market decreased from 192 in April 2009 to 80 last month, a 58 percent decrease year-to year.  In April 2009, 57 percent of all multi-family sales were distressed compared to 85 percent in April 2010.  There is currently a seven-month supply of multi-family properties on the market.

“Overall, sales have rebounded nicely and Rhode Island’s foreclosure market has shown steady decreases each month, despite other media reports to the contrary.  Other data sources include New Bedford and Fall River in the Providence market statistics and they often don’t really represent what is happening in Rhode Island alone,” Martone explained.  “As always, price is key and that varies by location and by property. It’s important to know what’s going on in your town and neighborhood.”

Variations in sales data collection methods may provide discrepancy is data interpretation. Rhode Island Association of Realtor statistics include all Realtor-assisted property transactions in Rhode Island only, the vast majority of which are generally recorded with the State-Wide Multiple Listing Services within two days of closing.  Realtor transactions account for approximately 96 percent of all sales and exclude non-arms length sales such as discounted sales between family members.