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Rhode Island Home Market Showing Signs of Improvement
Warwick, RI, June 26, 2008…The Rhode Island real estate market is showing signs of promise according to statistics released today by the Rhode Island Association of Realtors. Pending sales for single family homes, those sales under contract but not yet closed, increased in May of this year to 1246 from 1174 in May, 2007, a 6.13 percent increase. Pending sales were also up 5.86 percent month to month with 1177 reported in April 2008. May marks the second consecutive month of increased pending sales, which are considered the most current indicator of the market. Another sign of recovery was a decrease in the number of homes on the market from May of last year which had 6723 single family homes listed for sale to 6621 last month.
Closed sales for single family homes were down year to year, from 770 in May, 2007 to 652 in May, 2008 but up month to month. Five hundred and thirteen sales were recorded in April 2008. The median sales price decreased from $275,000 to $252,500 from May 2007 to May 2008, reflecting the volume of low-end, distressed properties on the market. Median price reflects the mid point of sales, where half the homes sold for less and half sold for more. The median price reflects the mix of properties on the market and does not necessarily reflect the price of similar properties year to year.
“The latest statistics show that buyers are starting to be less hesitant about getting back into the market, and sellers are realizing that if they don’t have to sell it’s best to wait until some of the competition decreases.” said Rob Scaralia, President of the Rhode Island Association of Realtors. “Since Rhode Island was one of the first areas of the country to enter the boom, it seems likely to be one of the first areas to begin recovery,” he added.
Lawrence Yun, chief economist of the National Association of Realtors (NAR), agrees. Yun said pending sales contracts have picked up notably in areas undergoing significant price drops. “Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines. Our most recent data shows sales rising strongly from a year ago in some areas that experienced sharp price drops,” he said.
The National Association of Realtors forecasts an improvement in the housing market for the second half of this year as buyers are able to access affordable mortgages with sound but less stringent underwriting standards.
Contact: Kerry Park, 401-785-9898 ext 6948/ kparkcompass@yahoo.com