June Median Home Price Among Highest Since August 2008

WARWICK, RI – Rhode Island’s median price of single family home sales in June declined four percent from the prior year. With the exception of June of last year however, this June’s median price reached the highest dollar value since August, 2008.  Sales activity remained relatively stable with three less sales this June than last. The data released from the Rhode Island Association of Realtors today, was pulled from records from the State-Wide Multiple Listing Service, which tracks all Realtor-assisted sales.

Looking at a broader picture, the association also released sales data for the first six months of the year.  The median price of single family home sales rose six percent from January through June, compared to the same time frame a year earlier.  Sales activity moderated slightly.

“We are slowly making progress. Rhode Islanders are regaining equity, though not at the same pace as most states. We continued to be plagued with higher unemployment than other areas and for many people, wages haven’t kept up with the cost of living. Obviously that makes it difficult for some people to consider a move,” said Robert Martin, president of the Rhode Island Association of Realtors.

Though foreclosure and short sales have diminished substantially, the statistics showed that 19 percent of all single family home sales were distressed in the first half of the year.

“Sales activity is still constrained by the fact that nearly one in five sellers are not likely to buy another home in the near future and some potential buyers don’t have enough equity if they sell to have an adequate down payment on their next home, even if they’re not in a distressed sale situation. Despite the fact that interest rates remain near all-time lows, many people still can’t take advantage of the great market conditions. Fortunately, a number of reports indicate that our economy is slowly getting better and so too is our housing market,” said Martin.

The first half of the year ended with condominium sales falling a marginal one percent in June from 12 months earlier, while median price fell four percent.  Both sales and median price were down by four percent overall in the first half of the year.

The investor-driven multi-family market ended the first half of the year on a strong note however, with a 15 percent increase in sales activity and a 12 percent increase in price.  Though sales did decline slightly through the six-month period from January through June, the median sales price of $140,000 was 17 percent higher than the prior year.

The number of properties on the market in June hovered near a six-month supply, which is considered to be a market balanced between supply and demand.

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