Rhode Island Association of Realtors Report 15th Month of Increased Sales

  Every month brings a little bit better news for housing. We certainly are not out of the woods yet, but it is pretty clear to most economists that we have definitely hit the bottom, and are slowly working through a recovery.  As the job numbers grow, so will confidence.   September housing starts were up 15% over last year and building permits, a forward indicator,   were up 45% over last September. In Rhode Island, single-family home sales rose 8 % in September compared to last year, marking the 15th consecutive month of increased year-over year sales, according to the latest figures from the Rhode Island Association of Realtors. Pending sales are up 24%, and inventory fell by 18%, helping to restore more balance to the market.   While the median price fell 7%, there were fewer distressed sales and the median price without factoring in those sales was up 14%.   Condominium sales were up 3% while prices fell 3% to $187,200. Distressed sales fell 4% year over year. Multi-family sales fell 17 % while the median sale price rose 10%.   Inventory was down 28 % from last year and distressed sales fell from 80% of all transactions to less than 50%. This week’s Real Estate Insight: As we work through the foreclosures and inventory gets lower, we will more than likely see prices start to rise. There are already signs of tightening supply in many price points resulting in multiple bid situations. The recovery might not be happening fast enough for some   investors or the greedy, but all signs are pointing to healthy sustained growth in housing.