Some Good Signs for the Real Estate Market

Warwick, RI, November 22, 2011…October sales statistics released today by the Rhode Island Association of Realtors (RIAR) showed existing single family home sales up nearly eight percent from October, 2010, the fourth consecutive month of increased sales year over year.  Median price however, decreased 17 percent statewide to $182,250, most likely due to a 27 percent increase in short sales and foreclosures.  Such distressed sales predominantly occur in the lower price ranges and substandard conditions often result in discounted prices, bringing the overall median price down.  Median price rose in eleven municipalities – all of which avoided an increase in distressed sales.  The median price of conventional sales – those not selling through foreclosure or short sales – was $224,000.

“Given that we’ve seen interest rates in the threes and fours and home values more affordable than they’ve been in years, I don’t think we’ll see another time in the near future when people will have more buying power,” commented Jamie Moore, 2012 RIAR  President.

October condominium sales rose 25 percent from the year prior, while median price fell 19 percent to $141,000.  Thirty-one (31) properties sold through foreclosure or short sale last month compared to 13 in October, 2010.  The median price of non-distressed sales was $176,450.

Multi-family sales remained stable, up less than one percent from October, 2010 but median price fell 31 percent to $100,000.  Distressed sales increased from 51 in October, 2010 to 64 last month, the first increase since August, 2009.  The median price of non-distressed sales was $134,750.

“Increased sales are helping to deplete the excess supply of homes on the market which will help prices to stabilize,” said Moore. “It’s important to note that the median price reflects the types of homes that are selling during the quarter and can be misleading at times when foreclosures depress the market.  When pricing a home for sale, or looking to purchase, remember that the median price does not reflect the value of one home over time, but is the mid-point of all sales, where half sold for more and half sold for less.”

If you’re thinking about your first home or a new home call me today at 401-529-7012!

I wanted to just touch on our market and a typical market in the Holiday Season.  First, our current market is alive and well, full of opportunities, driven by good inventory, low rates and rebounding demand.  If you’re a buyer on the sidelines I strongly believe it’s TIME TO JUMP IN!  I believe we will soon look back at today’s values and interest rates and say “I can’t believe I didn’t pull the plug”, don’t let this be you.  Call me today so we can just talk, dream and see what the opportunity is for you.  If on the other hand you’re thinking of selling don;’t for a minute think the Holiday time is not a good time to sell.  I’ve sold houses literally on Christmas Eve, New Year’s Eve and Day…many times over!  It’s amazing how the Holiday season often is a bit slower BUT the seriousness and quality of buyer is very strong.  Don’t wait, the perfect time to sell is when you’re ready to sell, not some time on the calendar.  Either buying or selling please know, I’m here and would be honored to be of help.

Now go enjoy your family, be thankful for all we have, eat too much and take a nap =)…HAPPY HOLIDAY’S!

Phil

Those words are and always have been true no matter what they say on the evening news or in the biggest newspapers. In addition to that let’s all understand one thing…bad news sells not good news.

After over 30 years in this business I can tell you without hesitation, there are ALWAYS people who need to buy and people who need to sell. I’ve sold houses with interest rates of 18% and rates as low as 4%. I’ve been through countless “buyers markets” and equally as many “sellers markets”.

This market “adjustment” we’ve been through as been deep, hard and greatly unforeseen, at least as far as “how deep and how hard”. But with every door that slams shut a window opens. I/We have been thrilled to see the countless unbelievable opportunities that exist for buyers today and love to watch the expression of the countless young or first time buyers enjoy the thrill of buying their new home. But it’s so much more than that. I just took a $549,000 listing in Olde Buttonwoods from some wonderful sellers whose time has come to downsize for their wellbeing. That home is a tremendous opportuity for a new buyer who will love it and enjoy it for decades to come.

Some basic facts to keep in mind:

– interest rates are at or near all time record low’s
– inventory is high so there’s lots to chose from act all levels
– if you’re employed, have reasonable credit and debt you’re likely financeable!
– if it’s time to sell, it’s time to sell. Don’t try to “time the market”, go based on your needs and situation. Your stock portfolio is only truly “worth” anything the day you sell it, that applies to your home too. Breath deep, seek professional advise,it’s going to be ok.
-if life has handed you a bad hand and you’re upside down and/or just can’t keep don’t hide, we help sellers in that position every day and I can help you too, call me.

Basically, I want you to know “In RI real estate, the sky is not falling”. Breath deep and have some faith, it’s going to be alright. Call me at 529-7012 if I can be of any service, we’re here to help!
-I’m here, ready, willing and able to help!

Warwick, RI, January 26, 2011… According to home sales statistics released today by the Rhode Island Association of Realtors (RIAR), 2010 showed an upward trend in prices, reversing a downward trend that began in 2005. The median price of single family homes sold last year was $210,000, up five percent from 2009′s median price of $199,400. The median price represents the midpoint of all sales, with half selling for more and half selling for less. Median price does not reflect the value of the same property over time, but rather the mix (size and type) of properties sold. Rhode Island bucked the trend of falling prices seen throughout much of the nation.

However, single family sales fell in 2010, down 12 percent from 2009 sales – when sales showed strong increases from 2008 levels due to the initial November 30th deadline for the home sales tax credit. (At the end of 2009, the tax credit was extended to include sales under contract by April 2010.)

Last year’s sales of 6833 single family homes increased three percent from 2008′s volume of 6648 sales, the last year that sales volume was not affected by the tax credit on home sales. For purposes of comparison, when analyzing sales data since 1990, the median number of home sales per year was 7600 sales.

“Overall, we’re pleased that we seem to be headed in the right direction,” commented Stephen Antoni, RIAR president. “Median price has increased every month since November 2009 and sales activity is beginning to regain its footing since beginning to fall in the summer following the expiration of the tax credit,” he said.

The rise in median price is likely owed to a decline in distressed sales last year, as well as more reasonable lending standards in the jumbo mortgage market and an added tax credit incentive for move up buyers during the tax credit extension. The number of distressed sales among single family homes – foreclosures and short sales – dropped 31 percent from 2009.

Throughout most of the country, median prices have been decreasing due to increased distressed sales. Rhode Island is now finding the opposite to be true. The state was one of the first to enter the foreclosure crisis and now appears to be ahead of the curve in the recovery. In Rhode Island, the number of distressed sales, which typically sell in the lower price ranges, are decreasing while sales of higher priced properties selling through conventional means are increasing, leading to higher median prices.

“We’ve said all along that the key to the recovery in the housing market is to get the distressed sales out of the system. That seems to be happening. Despite reports of increased foreclosure filings, people seem to be steering their way out of the foreclosure or short sale process, whether through loan modifications or other means,” said Antoni.

The multi-family market saw a sharp increase in price of 35 percent to $121,900 owing to a level of distressed sales which fell by nearly half in 2010. In 2009, 1754 multi-family properties sold through short sale or foreclosure; in 2010 that number declined to 926 properties.

As prices climbed and low end inventory was depleted, multi-family sales slowed 32 percent to 1565 sales from 2286 in 2009. However, since 1990, Realtor data shows the median number of sales of multi-family sales was also 1565, indicating that the pace of 2010 sales appears to be within the normal range.

The median price of condominiums rose five percent last year to $187,000, up from $179,000 in 2009. The tax credit seemed to do little to boost the condo market as both median price and sales remain below 2008 levels (of 1210 and $212,700, respectively). Many believe that better affordability of single family homes in recent years steered ‘would-be’ condo buyers to the single family market.

Condo sales declined five percent from 2009 to 1144 sales last year. The median number of annual condo sales since 1990 is 1207. The number of distressed sales fell 23 percent.

Price gains in the fourth quarter were reflective of the increase during the entire year. From October through December, median price rose five percent among single family and condominium sales from the year prior and by 17 percent for multi-family sales. Sales activity slowed markedly in the final months of the year however. Single family homes sold fell 27 percent, multi-family sales dropped 37 percent and condo sales fell 32 percent. The slowdown in sales began in July following the expiration of the tax credit.

RIAR reported that the number of properties on the market remains high among the three categories. There is nearly a nine-month supply of single family homes on the market, just under an eight-month supply of multi-family properties, nearly a 13-month supply of condominiums for sale. A six-month supply typically indicates a balanced market, while more than that indicates a market more favorable to buyers.

“We’re cautiously optimistic,” said Antoni. “Affordable prices, low interest rates, rising equity and decreasing distressed sales…they’re all good signs and we seem to be once again, ahead of the national curve. We didn’t get into this overnight so it’s taking a while to regain our momentum, but I think we’re definitely on the right track. Still, the key to total recovery will be getting rid of the oversupply and continuing to deplete our distressed inventory. It’s also important to remember that though it’s a buyer’s market, when you sell, if you’re buying something else, you’re going to get a great deal on the other end,” he said.

If you know someone looking to buy or sell it would be my honor to be of assistance please feel free to call me at 529-7012.  Phil

Phil

Read more about December Sales statistics at http://www.realtor.org/RMODaily.nsf/pages/News2011012001?OpenDocument