RHODE ISLAND ASSOCIATION OF REALTORS®, INC. "The Voice of Real Estate in Rhode Island" Press ReleaseContact: Kerry Park |
FOR RELEASE: February 3, 2009
Condo Price Drops 3.8 Percent in 2008Warwick, RI, Feb 2, 2009…Condominium sales statistics released today by the Rhode Island Association of Realtors, show a decrease in the number of condo sales, dropping 33 percent in 2008 compared to 2007. Eighteen hundred and six (1806) condo sales were transacted in Rhode Island in 2007 compared to 1210 last year. Median sales price declined slightly from $221,000 to 212,700, or 3.8 percent. “The condo market held its own for much of the changing market until recently,” commented Paul Leys, President of the Rhode Island Association of Realtors. “Now we’re seeing fewer sales and lower prices as foreclosures and short sales become more prevalent in this market segment.” One hundred and fifty-four (154) of the sales – 12.7 percent - were distressed sales selling through short sale or foreclosure. The median price of non-distressed condo sales was $223,500. The condo market remains however, the category of real estate least affected by distressed sales. Slowing sales may be the result of developers choosing to rent, rather than sell units, while waiting for the market correction to complete. This could also account for the lower percentage of distressed sales for condos as compared to single and multi-family sales. The number of condo sales decreased most markedly during the fourth quarter of 2008, down 43.1 percent from 390 from October through December 2007 to 222 during the same time period last year. Median price declined 10.1 percent from $224,750 to $202,000. Forty-seven (47) of the 222 fourth quarter sales, (21.2 percent) involved distressed properties. The median price of non-distressed sales was $220,000. In December, 2008, condo sales volume decreased to 72 sales from 109 sales in December,2007 or 33.94 percent. Median price decreased 22.9 percent, from $254,000 to $195,900 during the same time period. Twenty (20) of the 72 sales in December were distressed sales. The median price of non-distressed sales was $228,450. The number of available condos for sale during the last week in December fell 5.9 percent from the year prior, from 1639 to 1542. “Though sales have slowed, inventory is down from a year ago. That’s the key to moving through this market cycle. Forty-five percent of Rhode Island buyers are first-time home buyers, many of whom are interested in condos. There are a lot of incentives now for first-time buyers, like low interest rates and the $7500 tax credit which should be particularly helpful in decreasing inventory in the condo market,” said Leys.
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Paul Leys2009 REALTOR® ----------- View 2008 Year End ----------- View 2008 4th Quarter ----------- |
About the Rhode Island Association of REALTORS®The Rhode Island Association of REALTORS®, the largest professional organizations in Rhode Island with approximately 4,400 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. Last year, Rhode Island REALTORS® were involved in over 11,000 real estate transactions with a total sales volume of $2.8 billion. 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 one million members involved in all aspects of the residential and commercial real estate industries and who subscribe to a strict Code of Ethics. |
