RI Realtors Report Big Spike in 3rd Quarter

RI Realtors Report Big Spike in 3rd Quarter

There is some good news for the Rhode Island economy. Home sales, traditionally a strong indicator of the strength of Rhode Island’s economy, were on the rebound for the third quarter of 2013. The RI Association of Realtors (RIAR) indicated rising interest rates as the major driver spurring home sales in Rhode Island.

Statistics released today by RIAR indicted that single family home sales were up 19 percent from the same time last year. The median price of single family homes also made substantial gains, up ten percent to $218,200. RIAR attributes the bump in median price to the decline of both single family foreclosure and short sales — down 13 percent — which accounted for 17 percent of total sales, a 6-point decrease from 23 percent in the third quarter of 2012. West Greenwich properties topped the list, where single family median price rose as much as 70 percent, and the number of distressed sales fell by 33 percent.

The condo market showed a distinct turnaround, with sales activity rising 57 percent from third quarter 2012 and median price rising seven percent to $199,450. Worth noting was a 35 percent drop in distressed sales from the third quarter of 2012.

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"Up until this year, the condo market was lagging in the recovery. Last year, many were in a short sale or foreclosure situation which really limited the number of sales. Now we're seeing the condo market bounce back in a big way," said Victoria Doran, RIAR President.

The multi-family market also showed signs of rebound with sales activity up six percent and median price rising to $140,000, a 17 percent increase. The number of foreclosure and short sales fell 26 percent, but the distressed market for multi-families remains relatively high, with 32 percent of all sales selling through foreclosure or short sale. At the height of the foreclosure crisis, distressed sales accounted for more than 80 percent of the multi-family market.

"It's hard to predict what happens next," said Doran. "Sales under contract but not yet closed were down in August and September, which would generally indicate that sales activity will begin to slow in the fourth quarter. Plus, ramifications of the government shutdown could skew October statistics. But mortgage rates have been falling since September and that has kept buyers in the game."