RI Real Estate Report
Wednesday, December 22, 2010
November proved to be another mixed bag for the residential home market in RI - the median price of single family homes rose two percent to $209,000, up from $205,000 in November 2009, according to statistics released today by the Rhode Island Association of Realtors.
However, that modest gain was in contrast to the reduction in sales. The number of single family home sales fell 31% from 2009 when sales were on the upswing. Single family home sales in 2009 were up more than 60% from November 2008 due to the impending expiration of the home buyer tax credit, which was to have initially been scheduled to expire Nov 30, 2009. But, that deadline was later extended to contracts signed by the end of April and closed by June 30th of 2010. When the extension expired, sales dropped in July. Sales have remained relatively constant since that time.
"Sales are down, there’s no doubt about it, but we’re also comparing this November’s sales to a stellar year last year owing to the tax credit. It’s hard to compare apples to apples given last year’s unusual incentive," said Stephen Antoni, President of the Rhode Island Association of Realtors.
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The number of single family short sales and foreclosures also continued to decrease last month, down 31% from a year ago. Also, 23% of all single family sales were sold through short sale or foreclosure last month. Single family distressed sales had gotten as high as 48 percent of total sales in January of 2009.
Condos
The condominium market in November was consistent with single family homes: median price up 14% to $198,000 and the number of sales decreased 27%. The number of distressed sales fell four percent from November 2009 to November 2010, and currently account for 24 percent of all condo sales.
Multi-Family
For multi-family sales, the median price rose 9%, to $125,000 and the number of properties sold fell 30%. The number of short sales and foreclosures fell 38% over last year. Remarkable, 60% of all sales in the multi family market were still sold through short sale or foreclosure in November.
"My advice right now is, if you don’t absolutely have to sell, wait until the market levels out but, if you are selling and you are willing and able to buy, everything is in your favor. Interest rates are at their lowest levels ever, there is a good selection of homes to choose from at realistic prices, and lenders are becoming more eager to play ball with qualified buyers in all price ranges," said Antoni.
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