NEW: Single Family Home Prices Up, Sales Still Sluggish

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Wednesday, March 23, 2011

GoLocalProv Business Team

Single family home prices rose eight percent in the month of February throughout Rhode Island, the highest for the month since 2008.

According to the most recent statistics released by the Rhode Island Association of Realtors, the median price of single family homes rose went to $205,000, which was up from $189,950 in February 2010.  The February median price in 2008 was $205,000.  On the flip side, sales remain slow, down 13 percent from the year prior.

"We continue to see an upward trend in median price," commented Stephen Antoni, President of the Rhode Island Association of Realtors. "Other than a slight dip last month, the single family median price has been rising since November 2009.  We're hopeful that we’ll see that trend continue, since lower priced distressed properties are becoming less of a factor in the market.  Sellers though, should be aware that despite great interest rates and affordable prices, sales are down.  They need to be realistic about pricing their property."

Antoni explained that median price is not a reflection of value of the same property over time, but the mid-point of sales, with half of the sales selling for more and half selling for less.  Median price more accurately reflects the aggregate size and type of properties selling in the market. 

The condominium market saw no change in the number of sales from year to year, breaking the negative trend of declining condo sales experienced since July, the first month without the federal tax credit incentive.  Prices however, fell 21 percent in February.  Condos prices have been up and down in recent months.  January 2011 sales data showed a median price 25 percent higher than January 2010; in December 2010, median price was down three percent from the previous year.   Swings in price and sales activity are more common in the condominium market as large developments selling at different price points enter the market or change pricing and sales strategy.

For the first time since October 2009, the median price of multi-family sales declined, falling from $98,750 in February 2010 to $96,000 last month.  Sales also dropped dramatically, down 51 percent from the year prior. 

The number of distressed sales – short sales and foreclosures – continued to decline in all three categories, down 33 percent among single family homes, down seven percent in the condo market, and down 58 percent among multi-family properties.  The number of single family homes and condominiums available for sale also decreased from year to year, while the availability of multi-family properties remained virtually unchanged.  Reducing excess inventory is the key to restoring a healthy balance of supply and demand in the housing market. 

Note: Statistics from the Rhode Island Association of Realtors relay actual sales data collected through the State-Wide Multiple Listing Service only.  They do not include sales transacted through non-Realtor members or properties sold by owner.  The data is not seasonally adjusted or benchmarked in any way.

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