Sales of existing single-family homes in Rhode Island the second quarter of this year remained strong, while Massachusetts experienced a modest slowdown in sales, according to reports released by each state’s Association of REALTORS. The Statewide Multiple Listing Service reported 2,554 single-family properties sold in the second quarter of 2000 in Rhode Island. Total gross dollar sales are 110 percent of what they were a year ago.
The Massachusetts Association of REALTORS found that 12,949 detached single-family homes were sold during the second quarter of 2000 in Massachusetts. This represents a decline of more than 11 percent from the 14,558 units sold in the same period in 1999.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
MAR President Fred Meyer said that although this past spring in Massachusetts may not have been as busy as the previous two, it hasn’t been slow either.
”In terms of sales volume, activity may be down slightly,” he said. “But in many areas, buyers still outnumber listings with only a small let-up in showings.”
Single-family listings have declined 16.9 percent in that past year in Massachusetts. From 37,712 units in the second quarter of 1999 to 31,356 in the same quarter this year.
”The record-setting sales pace of the past four years has severely diminished the available housing supply,” said Meyer, “leaving some buyers, especially those at the lower-end with little to choose from.”
RI REALTORS reported that through the second quarter of this year, demand for entry-level and trade up homes drove home re-sales to the second highest level ever, and prices to their peak. As in Massachusetts, buyers are also outnumbering listings in Rhode Island.
The report stated that although the number of buyers looking for a home remains high in Rhode Island, inventory is down about 30 percent from last year. President of RI REALTORS Ronald Phipps said many homeowners are looking to trade up or down for their houses, but are waiting to find their next home before they list their property for sale, since they know their already-owned house will sell so quickly.
”This is a crucial segment of the housing equation,” said Phipps, “because all other sectors of the market depend on first-time home buyers in order to sell their existing homes.”
In both states home prices have been increasing rapidly. In Rhode Island prices have been rising faster than the historic norm of four to two percentage points above the rate of inflation. At approximately $178,100, the average selling price of a single-family home in the second quarter of 2000 is at its highest level ever. The average selling price at this point last year was about $23,000 less.
And statewide in Massachusetts, the average selling price for detached single-family houses rose 20.1 percent during the second quarter.
Phipps said that in Rhode Island, the purchases in the high-end move-up market is what continues to push up the average selling price.
”We are seeing a record number of expensive homes being sold including those priced over a million dollars,” he said. “Many of the buyers in this high -end category are looking for a good tax shelter for the profits they are making on previous purchases.”
Meyer said a similar trend is occurring in Massachusetts.
”The primary cause for the spike in average pricesis the boom in upscale, primary and second home sales, which have risen sharply this past year as baby boomers and young executives cash in on financial investments and steady salary growth,” said Meyer. “The sale of just a few higher-priced homes has driven up the average selling price sharply.”
Phipps said although home prices have been rising, in most markets they have still not outstripped people’s ability to afford them. He cited that prices in Rhode Island are still among the lowest in New England waterfront property.
”I think that basically if values remain constant, activity will remain at a similar level to what we’re enjoying now,” said Phipps.
