Healthier Spring Selling Season for RI Housing Market6/16/2013
Warwick, RI - May 30, 2012... Rhode Islands housing market continued to show progress in April with the number of sales of single family homes up seven percent from April, 2012 according to data released today by the Rhode Island Association of Realtors. The median price of $180,000 was three percent higher than a year ago owing to a 22 percent reduction in the number of foreclosure and short sales. Distressed sales accounted for one in four sales in April compared to more than one in three twelve months earlier. Median price which indicates the midpoint of sales prices with half selling for more and half selling for less - generally moves up as distressed sales decrease.
Sales under contract but not yet closed also rose four percent, indicating continued movement in the single family market. With the number of homes available for sale dropping 13 percent in April, Rhode Islands housing market is left with a 7.5 month supply of homes for sale, indicating a market which slightly favors buyers. A six-month supply of inventory is typically considered balanced between buyers and sellers.
"This is the best spring selling season we've seen in years. The rebound has been slow but the important thing is, the economy and the housing market are improving. That's good news for Rhode Islanders all over the state. Still, we need to emphasize the importance of realistic pricing. I've seen a lot of sellers who think they can get astronomical prices now because theyre hearing about a shortage of inventory. Those are national reports. Rhode Island still has a good amount of homes for sale so its important to price competitively," said Victoria Doran, President of the Rhode Island Association of Realtors.
According to Realtor statistics, the condominium market saw a 16 percent increase in sales last month and median price rose 13 percent to $157,500. The number of distressed sales fell seven percent and pending sales were up 12 percent from last year. The number of condo listings on the market fell ten percent leaving a nine-month supply of condominiums for sale. Though Rhode Island still has a significant amount of condominiums for sale, a surge in sales in recent months is beginning to restore balance between supply and demand.
Sales in the multi-family market also rose, with sales up 11 percent last month from the prior year, reversing a downturn in sales reported in the previous month. The median price of $107,000 however, was 16 percent below the previous year's price as the number of distressed sales rose four percent. Foreclosure and short sales continue to account for nearly 50 percent of all multi-family sales. The number of multi-family properties for sale fell 22 percent in April leaving a six-month supply of properties for sale.
"All indications are that we are firmly planted in recovery but Rhode Island remains a bit behind the rest of the country in moving excess inventory. We're almost there but we still have a bit to go to restore a balance of supply and demand. That said, we're very encouraged by what weve been seeing in the past few months," said Doran.