Here are some bullet points taken from the data released on 9-29-08:
*Most importantly, please keep in mind that these are statewide statistics.
SINGLE-FAMILY HOMES
Single family home sales were down 21.89% from 763 in August 2007, to 596 in August 2008.
Median price of single family homes also fell, to $235,000 from $279,900 for same period
27% of single family home sales were foreclosures or short sales
Inventory decreased by 3.98% in August from 6952 in August 2007 to 6675 this year.
August pending sales increased 22.36% year to year. "Both show a healthy increase in buyer demand".
MULTI-FAMILY HOMES
Multi-family prices were down nearly 45.45% from $239,500 in August 2007 to $128,250 in August of this year. "The multi-family market has been the hardest hit segment of the market with 101 distressed sales, foreclosures or short sales, compared to only 31 traditional sales in August. Total sales of multi-family properties were up 37.5% year to year from 96 in August 2007 to 132 in August 2008.
CONDOMINIUMS
The Median condo price fell only 4.65% to $232,500 from $243,850. The number of condo sales fell 26.7% from 176 in 2007 to 129 in August of this year. Only 14 condo sales involved foreclosures or short sales compared with 115 traditional condo sales.
In my opinion...
SINGLE-FAMILY HOMES
A 21% drop in single home sales shows the challenges of this market. The increase in Pendings (Homes under agreement, but not sold yet) is a good sign, but that number also appears to be increasing because financing can be difficult for many buyers. My team has experienced this exact issue this month. As buyers have difficulty getting financing completed, usually buyers and sellers will extend the closing date to attempt to find a new lender to finance the transaction. This partially explains an increase in "pending sales", but a decrease in actual executed sales.
The slight decrease in inventory is a good sign, but honestly only the beginning of a long road. For the market to improve we need:
- The overall inventory to decrease and
- The foreclosure, short-sale and distressed sales to decrease dramatically, as they apply pressure to the entire market, especially non-distressed sale properties
The good news is that this is a great time for first-time home buyers, especially buyers who qualify for financing through the RI Housing program. Buyers are now able to purchase "good homes" for much less, making the American dream a reality. We are currently working with many buyers looking for homes priced between $120,000 - $200,000 and finding great homes!
MULTI-FAMILY HOMES
Keep in mind these statistics are state-wide statistics. The technical reason why multi-family homes have lost 45% of value is because:
- Most of the sales that are occuring right now for multi's are occuring in larger city markets (Providence, Cranston, Woonsocket and others) where most sales are foreclosures and short sales.
- They are distressed sales being purchased, probably by investors at "investment-grade" prices
If you own a multi-family in a fairly stable area, your value likely did NOT decrease 45%! This is why working with knowledgable and expierenced agent is important; We understand how to interprett statistics and the impact to your home.
CONDOMINIUMS
No dramatic changes.
Posts
