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April Home Sales Up
Rhode Island existing single family home sales increased 3.1 percent in April from a year prior and rose 9.3 percent from March to April. Pending sales- homes under contract but not yet closed – were up nearly 30 percent from the previous year. The median single family home price rose to $183,000 from $180,000 in March, but was down 24.4% year to year, from $242,000 in April, 2008. Forty-two (42) percent of the transactions in April of this year were distressed sales. The median price of non-distressed transactions was $224,000.
“Rhode Island continues to be affected by foreclosures but thankfully, sales are up and inventory is down. Both of those indicators show increasing market stability,” said Paul Leys, President of the Rhode Island Association of Realtors. Inventory dropped 19.8 percent from April 2008 to April 2009 but increased slightly from March to April, up 2.4 percent, a normal trend in the spring market.
“It’s important to understand that the median price reflects the size and type of properties on the market at the time. It doesn’t reflect changes in value of like properties over time,” explained Leys. “We’re seeing a much clearer delineation of two distinct housing markets this year, distressed and non-distressed. Reporting one median price for both types of properties doesn’t really give an accurate picture,” he continued. The median price of non-distressed properties remains near 2003 levels, when Rhode Island led the country in home price appreciation.
In the multi-family market, median price continued to plummet – down to $69,900 from $70,000 in March and $150,000 the year before. Sales increased 57.3 percent, from 143 in April 2008 to 225 this year, with 192 of the transactions (85.3 percent) involving short sales or foreclosures. The non-distressed median price was $180,000.
By contrast, condo prices rose substantially from $166,000 in March to $198,000 in April (19.3 percent), but were down nearly 10 percent from the year prior. Sales increased 10.3 percent from March to April but were down by 37 percent year to year. Pending sales however, showed strong movement in the condo category, rising 37.6 percent from March to April. Inventory rose 2.3 percent during the same time frame. Distressed sales accounted for only 22.7 of all condo sales in April. The predominance of conventional sales helped mitigate the larger price declines seen in the multi and single family home categories.
“We’re beginning to see more activity every day. It seems consumer confidence is finally beginning to grow,” commented Leys.