Tag: Rhode Island Home Sales
The Rhode Island Association of Realtors has just released its January 2017 sales statistics, reporting a strong start to the year for the Rhode Island housing market.
Single family sales increased by 21% compared to January 2016. However, at the same time, inventory continued to drop with 13.2% fewer single family homes hitting the market.
This increase in buyer activity paired with such a low inventory of homes has propelled demand, making this an excellent time to put your home on the market if you have been considering a move.
Other statistics worthy of note were condominium sales, which shot up 31.3% from this same time period last year. Multi-family home sales stayed consistent with the overall trend, rising 20% from January 2016. However, multi-family pending and were both down which hints at lower sales moving forward.
For more information on the real estate market, local communities, and current listings, please visit ResidentialProperties.com.
Following Providence’s selection as the nation’s #1 market to watch by Realtor.com this past December, there was plenty of optimism surrounding the Rhode Island real estate industry heading into 2016. Despite the already high expectations, the state’s housing market has managed to outperform its lofty projections and is currently on pace to break its all-time record for single family sales.
The initial rise began in 2015, when the Rhode Island market saw a 9% increase in single family sales from the previous year. However, through October of this year, not only has that rate of growth continued, but it has actually increased to 12.5% compared to the same time period in 2015.
So far this year, the market has already set records for single family home sales in both the first and second quarters, compiling 1,906 and 2,795 sales, respectively. Rhode Island also set a new personal best with its busiest month of September on record, amassing a total of 1,053 single family sales.
With such a historic start to 2016, the state is now poised to break it’s all-time high of 10,025 single family sales set back in 2004. Through the end of October this year, Rhode Island has already seen 9,185 single family sales, outpacing the 8,453 sales compiled over the same time period during the record-setting 2004 campaign. Considering that current MLS data already shows an additional 1,311 pending single family sales, it’s looking more and more likely that 2016 becomes the state’s new high water mark.
Inevitably, these numbers lead us to wonder about the underlying reasons behind such a hot market. The obvious factors that jump out are affordability and location. Despite prices rising 13% since 2012, the average single family sales price for Rhode Island homes is still nearly 15% lower than it was during its peak in 2007. The availability of reasonably priced homes located within close proximity of the ocean and cities such as Boston and New York offers a unique opportunity for buyers.
Rhode Island has also received plenty of buzz and free publicity as of late. Providence was named “America’s Favorite City” by Travel + Leisure Magazine in October of 2014, and was also selected as “America’s Coolest City” for 2015 by GQ Magazine, while Cranston has been included on Wall Street 24/7’s list of “America’s 50 Best Cities to Live” for each of the past three years. Some of the factors influencing these accolades have been the state’s celebrated restaurants, upscale hotel lounges, craft beers, specialty coffee shops, and emerging technology scene.
Whatever the reasons may be, Rhode Island homes continue to sell at an impressive rate, with the statewide average days on market dropping by nearly 30 days since 2012.
For more information regarding Rhode Island real estate, please visit ResidentialProperties.com – ranked among the top 25 real estate sites in the entire country.
As expected, we continue to show brisk sales as people are taking advantage of great mortgage rates and the first time buyer’s tax credit. The Rhode Island Association of Realtors reported last Wednesday that sales of single-family homes rose 29 % in October in year-over-year comparisons, but as we work through the distressed listings, the median sales price continued to decline
Here are the highlights of the RIAR report:
- 787 SF sold, compared with 621 last year.
- The median sales price was $200,000, down from $215,000 during October 2008
- 22% of sales were distressed properties
- The median price of sales without short sale or foreclosure was $230,000
The multifamily home market fell slightly in year-over-year comparisons:
- 187 sales in October 2009, down from 193 a year earlier, a 3.1%drop.
- The median price fell from $116,000 to $110,000.
- 18.6 % of those were distressed sales.
Condos had a 35% increase in sales in October compared with the last year:
- 111 sold compared with 82 a year earlier.
- The median price fell 29 % to $161,000 from $227,500.
- 21 % of the sales were distressed.
With Mortgage rates at historic lows, and lower prices, home affordability conditions are the best on record since 1970. The expanded tax credit should drive the spring market; helping the move-up buyer as well as the first-time buyer. Since potential buyers have until April 30 to have a contract in place, we should continue to see robust sales through Spring.
This Week’s Real Estate Insight:
By the time the credit expires, we should have worked though enough inventory that prices stabilize or even increase slightly, then the market could stablize because buyers won’t be paralyzed by worry about further decline in home values.