WARWICK — Sales of single-family homes increased 3.1 percent in April, helping to bring the inventory of unsold homes down by 19.8 percent, according to the Rhode Island Association of Realtors, as some signs of “stability” returned to the residential real estate market.
“Rhode Island continues to be affected by foreclosures, but thankfully sales are up and inventory is down,” RIAR President Paul A. Leys said in a statement today. “Both of those indicators show increasing market stability.”
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…
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The number of home sales last month rose to 529, 16 more homes than the 513 sold in April 2008. Still, while sales are up, the median price continued to fall, dropping 24.4 percent, to $183,000 from $242,000. Forty-two percent of April sales were listed as “distressed,” meaning they were either short sales or foreclosures, according to RIAR.
“It’s important to understand that the median price reflects the size and type of properties on the market at the time. It doesn’t reflect changes in value of like properties over time,” Leys said. “We’re seeing a much clearer delineation of two distinct housing markets this year, distressed and non-distressed. Reporting one median price for both types of properties doesn’t really give an accurate picture.”
RIAR reported that the median price of “non-distressed” homes sales last month was $224,000, which is “near 2003 levels.”
The median price of multi-family sales in April dropped 53.4 percent, falling from $150,000 to $69,900. Sales jumped up 57.3 percent, from 143 sales to 225 sales. But 85.3 percent of those sales were “distressed.”
Condominium sales fell 37 percent, dropping from 119 condos to 75 condos. The median price declined 10 percent to $198,000 from $219,900. The median condo price was up significantly, however, 19.3 percent, from the $166,000 median price in March 2009, RIAR noted.
“We’re beginning to see more activity every day,” leys added. “It seems consumer confidence is finally beginning to grow.”
The Rhode Island Association of Realtors has more than 4,700 member Realtors, who in 2008 were involved in more than 10,000 transactions totaling $2.8 billion. The RIAR is one of more than 1,800 local boards and associations comprising the nation’s largest trade association, the National Association of Realtors. To learn more, visit www.riliving.com.
