Real Estate News

Warwick, RI -- After months of declining sales, the housing market showed signs of reversal in September, with single family sales volume up 6.4 percent from the year prior.  Pending sales – homes under contract but not yet closed – were up an encouraging 26.3 percent, the sixth month of increase in the pending category.  Twenty-nine percent of single family sales involved distressed properties, (foreclosures and short sales.) Sales were likely spurred by falling prices, down 20.4 percent, to $219,000 from $275,000 in September 2007.  The September median price of non-distressed properties was $250,000, the same as 2003’s median price. September statistics show the inventory of single family homes decreased 5.7 percent year to year falling from 6862 active listings in September 2007 to 6472 listings in September 2008.

Falling inventory and an increase in pending sales is generally an indicator of housing recovery.  Lawrence Yun, NAR chief economist, said more markets saw year-over-year gains in September. “The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri and Rhode Island,” he said.

“We’ll have to monitor the credit markets to see if the trend continues but we’re hopeful that the housing stimulus package and economic bailout will have even more of a positive impact,” added Paul Leys, 2008 President of the Rhode Island Association of Realtors. “The $7500 credit for buyers who have not owned a home in three or more years just implemented by the federal government should be a big draw in pulling buyers back into the market,” he added.

Multi-family properties followed suit with an increase in sales volume of 100 percent. The September 2008 median price of $135,000 for multi-family properties fell sharply from its September 2007 level of $253,900. This category was the most sharply affected by sub-prime lending.  Sixty-six percent of the sales involved short sales or foreclosures. The September median non-distressed sale price was $214,000.

The number of sales in the condominium market decreased 18.3 percent from September 2007 to September 2008. The median price fell 11.6 percent from $215,000 last year to $190,100 this year, likely the result of tightening credit standards and the general downturn of the economy.  Only 13 of the 94 condo sales in September involved distressed sales.

Third quarter sales statistics will be release by the Rhode Island Association of REALTORS on November 12th.