Housing Momentum Remained Strong in July
RISBJ Staff | Aug 25, 2015
WARWICK, RI – Rhode Island’s single family homes sales increased 14 percent in July from 12 months earlier while the median price of those sales rose 10 percent to $239,000. The monthly housing data released today by the Rhode Island Association of Realtors also show a 16 percent increase in the number of homes under contract compared to the same time period last year. Last month was the eighth month of increased year-over-year sales and the increase in pending sales indicates that the trend is likely to continue in the months to come.
While single family home sales improved from the prior year, they were outpaced by the increase in condominium sales which rose 28 percent from July, 2014. After months trailing in the recovery, the condo sector has had three consecutive months of increased year-over-year sales. Median price fell four percent to $200,000 and the number of distressed sales decreased 52 percent from July, 2014.
Showing even stronger gains in closing activity was the multi-family home sector which experienced a 35 percent increase in sales in July from the previous year. June and July, 2015 with 153 and 145 sales respectively, were the most active months for multi-family home sales dating back to June of 2010. The median sales price also shot up nine percent to $172,500, despite an increase in foreclosure and short sales from the prior year which generally tend to drag the median sales price down. The increase in distressed sales may have been caused by an injunction issued in a May court case which prohibited the lenders involved in the suit from foreclosing against borrowers that had not been offered mandatory mediation prior to foreclosure. HUD and others that were not named in the lawsuit, subsequently delayed some foreclosures to make sure that lenders complied with the requirement.
“Overall the housing market seems to be in full gear. We’re seeing activity in all price brackets of the market and all areas of the state. Multiple offers are coming in which is something we haven’t seen in quite some time,” said Bruce Lane, President of the Rhode Island Association of Realtors. Lane explained that while the market is fairly well balanced between supply and demand, diminishing inventory is contributing to a housing market that slightly favors sellers.
About the Rhode Island Association of REALTORS®
The Rhode Island Association of REALTORS®, the largest trade organization in Rhode Island with approximately 4,000 members in nearly 750 offices, has been serving Rhode Islanders since 1948. Advocating for Rhode Island ‘s property owners, the Rhode Island Association of REALTORS® provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property.
The Association is one of more than 1,437 local boards and associations that comprise the National Association of REALTORS® (NAR). The National Association of Realtors®, “The Voice for Real Estate,” is America ‘s largest trade association, representing over 1.2 million members involved in all aspects of the residential and commercial real estate industries.
REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.
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