RI Home Sales

Warwick, RI, July 23, 2009…Signs of a Rhode Island housing recovery were strong in June with the existing single family median sales price continuing to increase for the fourth consecutive month. Prices rose to $210,000 last month from $190,000 in May. Sales volume was also up 20.9 percent from May to June and 12.4 percent year to year. The supply of single family homes on the market has dropped markedly in recent months, down to just over a 6-month supply last month. The reduced supply is critical to achieving a healthy market. A six-month supply is considered a balanced market between buyers and sellers. Pending sales – those under contract but not yet closed - were up 36 percent from the previous year. The percentage of single family distressed sales (short sales or foreclosures) has also been tracking in the right direction since March, down to 31.7 percent of all June sales.

“All of the signs point to a healthy recovery in the single family homes market,” said Paul Leys, President of the Rhode Island Association of Realtors. “We won’t be completely back to normal until we move the excess foreclosures and short sales through the market but it appears as though we’re almost there.”

The multi-family market showed a four-month supply on the market with 242 properties sold in June, up 64.6 percent from the year prior and 39.1 percent from May. Multi-family median price was up 1.5 percent from May to June but down 44.5 percent from June 2008. Prices remain low owing to a substantial 80.2 percent of sales selling through foreclosure or short sale.

The median price of condominiums was also up, increasing 22.6 percent from May to June but prices remain down eight percent from the prior year. Likewise sales were up 46.2 percent in June from the month prior but down 4.3 percent from June 2008. The condo market showed the least percentage of distressed sales in June at 21.8 percent.

“The statistics from recent months are solid. We’re definitely moving toward a more traditional market,” said Leys. “The $8000 tax credit for eligible buyers and low interest rates seem to be bringing a lot of hesitant buyers back into the game.”
The Rhode Island Association of Realtors will be releasing second quarter sales statistics on July 28.