Housing Ticks Up in December of 2010

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Thursday, January 20, 2011

In a year of ups and downs in residential real estate in Rhode Island, the year ended on an uptick. According to December sales statistics released today by the Rhode Island Association of Realtors, the median price of single family home sales rose half of a percent from November and 5 percent from 12 months prior. The December 2010 median price of single family homes was $210,000. The number of single family home sales in December totaled 529, up from 505 in November, but remained down nine percent from December 2009. The nine percent drop ended five months of year over year double digit sales declines, signifying that the sales slowdown which began in July after the expiration of the tax credit, may be nearing an end. The number of single family homes which sold through short sale or foreclosure fell 34 percent from December 2009.

“We saw some energy return to the housing market in December and a healthy gain in median prices. Median price has historically risen at prime plus one to two percent so we’re seeing normal price gains. We’re hopeful that the market will continue to rebound in 2011,” commented Stephen Antoni, President of the Rhode Island Association of Realtors.

In addition, the median price of multi-family sales rose eight percent from November, 2010 and 17 percent from December 2009 to $135,000. Sales slowed by 33 percent from the year prior, down to 124 sales in December, as the flurry of 2009 activity sparked by low foreclosure prices abated throughout 2010. The number of distressed multi-family sales declined 51 percent from the year prior.

Condominium sales struggled in December, down 17 percent from the month prior and 35 percent from December 2009. The median price of $178,500 also showed a decline, down ten percent from November and four percent from the December 2009 price of $185,000. The number of distressed sales decreased 50 percent since December 2009.

“The condo market was the last to enter the recovery and has trailed behind the other sectors. We believe we’ll see a turnaround in 2011 as distressed sales move out of the market,” commented Antoni.