Rhode Island Housing Numbers for July 2012

Rhode Island Housing Numbers For July 2012. 

Another Month of Increased Sales for RI Single Family Homes

Prices Beginning to Stabilize

Warwick, RI, August 21, 2012…Rhode Island home sales continued to improve in July, increasing 22 percent from the year prior.  Though median price was down one percent from July 2011, prices have shown continued improvement throughout the year. The one percent decrease marked the smallest annual decrease so far this year, a sign that prices are beginning to stabilize.

July statistics released by the Rhode Island Association of Realtors today show the median price of allsingle family home sales at $207,000 last month, while the median price of conventional sales only – meaning those not sold through foreclosure or short sale - was $238,000.

Median price has continued to rise month to month since February.  July was no exception, despite a sudden increase in the distressed market, which typically tends to lower the median as foreclosure and short sales generally occur in the lower price brackets.  The number of homes sold through foreclosure or short sale increased from 21 percent in July, 2011 to 25 percent this July. The percentage of distressed sales also increased from the month prior.  In June, foreclosure and short sales accounted for 23 percent of all existing single family sales.

"Overall, another favorable month for the Rhode Island real estate market," commented Jamie Moore, 2012 President of the Rhode Island Association of Realtors.  "Sales are up, prices are rising, and despite a few ups and downs, the distressed market has become less significant throughout the year."  Moore explained that though single family distressed sales were slightly higher in July, they accounted for less than one in four sales, a decrease from prior months early in the year when they accounted for one in three sales.

The multi-family market also saw a rise in year over year sales with 118 multi-family properties sold last month compared to 95 sold in July, 2011.  Median price decreased four percent to $135,000.  Distressed sales accounted for 43 percent of all July sales, compared to 58 percent last year. The median price of all conventional sales was $164,000.

Condominium sales did not fare as well last month, showing no change in the number of sales between July, 2011 and July, 2012.  The median price dropped significantly, down 35 percent, most likely owing to a sharp increase in distressed sales.  Such sales accounted for 25 percent of all condo sales last month, compared to 14 percent a year ago.

"Condominium statistics can be easily influenced.  With less than 100 sales last month, one change in pricing strategy for a particular development can skew the numbers significantly," explained Moore. July's median condo price of $157,500 is just slightly above the $155,450 median price seen at the beginning of the year.

Rhode Island Housing Numbers for July 2012  are continuning to look positive for Rhode Islanders.  Our number of sales are slowly and steadily climbing the upward curve.  

Gaining Perspective, and what this means to you.....

Sellers:

This all means that your house is worth as much today as it is going to be worth for a while. Prices are not fluctuating by large amounts right now they are either up or down by very small percentages. Even when the market begins to return to normal the gains per year will be small and gradual (1% to3% annually). Some projections say that in the next 18 months there will be an increase in value of 1%… Here’s the perspective you need, if you want to wait for a year and a half for prices to go up the most you would gain is 1%, so if you have a $250,000.00 house you would be waiting 18 months for $2500.00….doesn’t seem worth waiting for, does it?  Especially when you consider what your reason for moving is in the first place. If you are moving to be close to your grandchildren is it worth waiting until they are two years old before you are closer to them just so you can have $2500.00 more dollars?  Just one example….

 Buyers:

There is zero question that now is the time to buy a home. Even if you have a home to sell (see section above about Sellers). The selection of homes is incredible (Buyers benefit from the oversupply because selection is great and prices are great) Also, as of this writing, interest rates for 30 year fixed rate mortgages are 3.59% this is so low it is unheard of….this is what you would call “cheap money”!  Don’t wait until the market has recovered because if you do the selection of homes will not be as good, the prices will be higher and the interest rates will be higher….probably much higher.

Don't wait.  Check out the homes for sale in Rhode Island.  You can't beat the prices and the rates right now!