January Home Sales Are Showing Positive Signs - Showing Stability

January Home Sales Are Showing Positive Signs - Showing Stability

According to the Rhode Island Association of Realtors, Rhode Island existing home sales fell 1% in January, 2010 from 395 single family homes sold to 392 last month. These numbers may actually be very good news to the market as the numbers the previous year were bolstered by the federal homebuyer tax credits. According to sales statistics, the median price also declined slightly to $198,250 last month from $200,000 the year prior. The number of foreclosures and short sales decreased 23 percent.

When compared to January of 2009, when no such incentive was available, January, 2011 single family home sales increased 8% and median price increased 13%. The median price does not represent values for the same property over time but rather, reflects the mid-point of sales, where half the sales sold for more and half sold for less. In 2009, there were 174 distressed sales, compared to 99 last month, which helped spur the 13% in median price.

“We’re looking forward to a strong spring selling season. After the tax credit ended last summer, we saw double digit declines in year over year sales. The fact that single family sales remained relatively stable last month despite terrible winter weather which delayed inspections and closings, is a sign that the housing market is gaining strength once again,” said Stephen Antoni, RIAR president. “Though the supply of homes on the market has remained relatively constant since January of last year, we still have excess inventory. Those who want to sell will have to come to terms with setting realistic prices,” he added.

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Though sales lagged in the multi-family and condo markets, median price showed strong increases. Sales were down 44 percent and median price up 22 percent in the multi-family market. Among condos, sales were down nine percent but median price rose 25 percent. Both sectors showed a decline in foreclosures and short sales, down 54 percent in the multi-family market and down 13 percent in the condo market.

Statistics from the Rhode Island Association of Realtors relay actual sales data collected through the State-Wide Multiple Listing Service only. It does not include sales transacted through non-Realtor members or for sale by owners.