Average Home Prices Remain Even

In the Rhode Island Association of Realtors recent release of sales data on single family homes for the month of April, they showed the number of homes sold increased but the median price was off. The explanation for the lower median was an increase of foreclosures and short sales.   Looking at the more statistical quarterly data over the last two years (which makes up the interactive chart below), we also show a lower median on a year versus year basis.   However, the average has basically stayed the same and what’s hidden is the number of homes sold has steadily been going up. The average price is an interesting number to review.   For the most part, the numbers are pretty much the same over the last two years. And for the first quarter, which shows three years of data, the average IS the same. The only exception is the 4th quarter of 2010, when a large number of expensive second homes were dumped to avoid a possible tax increase that didn’t happen.   As we have said over the past year, the average is showing that housing prices have stabilized in most markets, and the rising number of units sold is proof that the inventory of foreclosures and short sales is being sold off. The important part of this is that now is the best time to buy homes.   We are also hearing this from other parts of the country.