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Pending Home Sales Rise in July
Warwick, RI – August 27, 2008…According to July home sales statistics released today by the Rhode Island Association of Realtors, single family home sales were down 4.94 percent from 769 in July, 2007 to 731 last month. The median price of single family homes was down 12.5 percent year to year from $280,000 in July of 2007 to $245,000 last month. More than 26 (26.3) percent of the sales were comprised of foreclosures and short sales, which lowered the statewide median price because “distressed” sales typically sell considerably below market value. The median price of homes which sold only through conventional sales – meaning not short sales or foreclosures – was $274,000.
While sales and prices were down, Rhode Island’s housing market did show some signs of recovery last month. Inventory decreased by 1.63 percent, from 6862 in July, 2007 to 6750 in July of this year. July pending sales – those sales under contract but not yet closed – increased from 987 to 1012. Both reduced inventory and increased pending sales are critical to restoring balance to supply and demand in the market. The Rhode Island housing market is showing continued recovery as July marked the third straight month of declining inventory and fourth straight month of increased pending sales.
“Buyers are now realizing that there are exceptional values out there. The wait and see period appears to be coming to an end,” said Rob Scaralia, President of the Rhode Island Association of Realtors. According to statistics from the National Association of Realtors, Rhode Island was among thirteen states that saw increased sales from the first to second quarter of 2008.
While the median condo price remained relatively flat, (down 1.96 percent from July 2007 to $225,000 in July 2008,) the number of sales declined 35.06 percent, from 174 sales last year to 113 this year. Only nine of July’s condo sales involved distressed properties.
Among multi-family properties, sales were up 28.7 percent but the median dropped 45.74 percent, from $258,000 in July 2007 to $140,000 last month. One hundred and four of the 148 July sales, (70.3 percent) involved distressed properties. Forty-four of the total 148 multi-family sales were sold through conventional transactions, (not foreclosure or short sale.) Their median price was $232,450.
The availability of low-priced, multi-family properties coupled with the $7500 home buyer tax credit recently signed into law by the federal government, gives first time home buyers an affordable entry into the housing market. “There are more options for first time homebuyers than there have been in years and interest rates are still low,” commented Scaralia. First time buyers comprise more than 40 percent of the Rhode Island housing market and are therefore critically important to the market recovery.