NEW: RI Home Sales Continue To Increase Through September

NEW: RI Home Sales Continue To Increase Through September

Rhode Island single family home sales continued to rise in September, up 8 percent from a year ago, according to the Rhode Island Association of Realtors (RIAR). Homes under contract but not yet closed rose by 24 percent. The significant increase in pending sales bodes well for the Rhode Island real estate market in the months ahead. The supply of homes for sale fell by 18 percent, helping to restore a healthier balance between supply and demand.

Other statistics released today by RIAR showed that the median price of single family sales declined seven percent to $185,000. Though down, prices have been stabilizing and the percentage of sales sold through foreclosure or short sale have been mitigating. Single family home distressed sales fell from 29 percent of total sales in September, 2011 to 24 percent last month. The median price of homes which sold through conventional means only was $212,000, nearly 15 percent more than the sales price including distressed sales of $185,000.

"The market is gaining ground little by little. Excess housing inventory is receding every month and that's the best thing that can happen. Now that we're seeing some gains in employment, consumer confidence seems to be building. I think after the elections are over and that uncertainty is behind us, we'll see even stronger gains," said Jamie Moore, RIAR President. 

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Condos + multi-family trends

The condominium market also saw a rise of three percent in both completed sales and pending sales. Conversely, the median price fell three percent to $187,200, though the median price of sales excluding foreclosure and short sales was $229,900. Distressed sales accounted for 22 percent of all condo sales, compared to 26 percent last year. The number of condos for sale fell by 17 percent from September, 2011 to September, 2012.

Statistics from the multi-family market showed opposite trends. Multi-family properties were the only type of real estate that saw a sales decline last month but experienced an increase in median price. Sales fell by 17 percent but the median price rose ten percent to $130,250. Though completed sales were down last month, pending sales were up 19 percent and the inventory of multi-family properties for sale decreased 28 percent.  Nearly half of all sales were sold through short sale or foreclosure, which, though significant, is down dramatically from its peak of more than 80 percent.  In past months, investors, who seem to recognize the bottom of the market, drove sales up. The market now seems to be returning to more normal levels.

A better ratio of supply and demand

The Rhode Island housing market has seen increased sales and decreased prices for the past several months, which is running counter to the national trend of increased prices and decreased sales. "Excess inventory and high unemployment have been hard on Rhode Island's housing market. As our inventory continues to deplete, we're beginning to see a better ratio of supply and demand. Though prices are still down, they've been gaining momentum. I think we'll soon be turning the corner and seeing increases in price," said Moore.

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