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Multi Family Home Sales Double in First Quarter
Tuesday, May 05, 2009

Warwick, RI, May 5, 2009….Sales statistics released today by the Rhode Island Association of Realtors (RIAR) show sales booming in the multi-family market, up more than 106 percent during the first quarter of 2009 compared to the same time period a year earlier.  The surge in sales is sparked by falling prices fueled by distressed sales.  Distressed sales – sales marked by foreclosure or short sales – accounted for 81.4 percent of all multi-family sales in the first quarter.  The median multi-family price fell to $80,000 from $161,000 the year prior.

“First-time home buyers and investors are seeing clearance sale prices,” said Paul Leys, President of the Rhode Island Association of Realtors.  Leys warned however, that distressed properties often need extensive repair which can add to the final cost of the property.  “Median price statistics for most multi-family homes today don’t represent the true cost of an inhabitable property,” he said.
More than half (281) of the multi-family properties sold in the first quarter are located in Providence. Pawtucket followed with 77 of the total 538 sales.

Single family homes, now more affordable, have become stiff competition for the condo market, helping to drive condominium sales down by  25.2 percent in the first quarter.  Prices also fell 15.1 percent from $205,950 in the first three months of 2008 to $174,950 in the first quarter of this year. Thirty percent of condo sales were distressed sales.  The median price of non-distressed condos sold during the first quarter was $218,000. 

At a recent Rhode Island Real Estate Housing Summit hosted by the Rhode Island Association of Realtors, noted URI Economist and publisher of the Rhode Island Current Conditions Index, Len Lardaro, told members of the audience that Rhode Island was in the process of recovery and should see a stronger housing market toward the end of the year.  Lawrence Yun, Chief Economist of the National Association of Realtors agreed and predicted that Rhode Island would lead New England out of the housing downturn.  Last week, RIAR reported that sales in the condo, single and multi-family sectors increased from February to March and were well ahead of the national average.

To view accompanying statistics, visit:

Multi-family
http://www.statewidemls.com/RealtorResources/SalesStats/Documents/1stQ-Multi2009-w-distr.pdf

Condo
http://www.statewidemls.com/RealtorResources/SalesStats/Documents/1stQ-Condo2009-w-distr.pdf