NEWS

Warwick, RI, January 27, 2016… Rhode Island’s housing market saw the largest volume of single family homes sold last year since 2004, with 9782 sales, and the highest median sales price since 2008. Year-over-year sales activity rose 10 percent and median price increased five percent from 2014, to $225,000. The data, pulled from all Realtor-assisted sales, was recently released by the Rhode Island Association of Realtors and its subsidiary, the State-Wide Multiple Listing Service. “We’re seeing cautious growth in the market again. It’s not the same type of frenzy that caused Rhode Island to lead the country in double-digit appreciation a decade ago. Instead, we’re seeing more moderate, steady gains. Last year was a ‘win-win’ for just about everyone. Sellers benefitted from more activity and increased prices. Buyers on the other hand, were able to tap into continued low interest rates, and unlike most other areas of the country, a decent supply of homes to choose from,” said Arthur Yatsko, president of the Rhode Island Association of Realtors. Sales in many areas across the nation have been stunted by a lack of inventory, a problem which has not significantly affected Rhode Island’s housing market. The upward trends seen among single family home sales carried over to other sectors of the market as well. There was a six percent increase in activity among condominium sales compared to 2014 and a three percent increase in median price. The multi-family home market experienced the largest gains last year with a 14 percent gain in sales activity and 15 percent appreciation in median price from the previous year. Foreclosure and short sales were down significantly among all property types, a factor in the rise of median price. Typically, median price, the point at which half of all sales sell for less and half sell for more, increases as low cost distressed sales move out of the market. Eleven percent of all Realtor-assisted single family home transactions were sold through foreclosure or short sale in 2015 compared to 15 percent during the prior year. Distressed sales accounted for nine percent of total condominium sales last year and 19 percent of all multi-family property sales. “Most of the barriers to home ownership that we saw a few years ago have dissipated,” commented Yatsko. “The overly stringent lending standards that immediately followed the housing downturn have eased, the economy is better, and because of that, consumer confidence has grown. We haven’t reached the peak prices we saw in 2005 but that means that homes are affordable for more people and in many cases, buying is more affordable than renting. Thanks to certain FHA programs, even people who went through a foreclosure or short sale process may now have the ability to buy a home again in a very short amount of time if they had extenuating circumstances and can show that they’re credit worthy. I think we’re starting to close the circle on the recovery process.” End of Year Trends Predict Early 2016 Activity Single family home sales and the median price of those sales experienced double digit increases in December and pending sales rose 12 percent compared to 12 months earlier. Pending sales are considered the most current indicator of future sales activity in the months ahead. It appears therefore, that transactions in process last month may help boost the lull in closing activity that typically occurs during the beginning months of the year. Though condominium closings fell by 15 percent in December, the first year-over-year decline in activity since March, Realtor statistics show a 10 percent increase in sales in progress. The decline in closed transactions in that sector therefore, is not likely to be repeated in the months ahead. The multi-family home market surged at the end of the year. Sales were up 15 percent in December and median price increased 20 percent. Fourth quarter data for single and multi-family home sales nearly mirrored year-end results, though the increase in sales activity moderated slightly from October through December in the condominium and multi-family home sectors. Overall, all sectors of the Rhode Island’s housing market appear poised for a strong showing in 2016. “Overall, sales may have been buoyed slightly in the fourth quarter by the anticipated increase in interest rates but by all indications, we should continue to see momentum in the market this year,” commented Yatsko. Art Yatsko 2016 REALTOR® State President 2015 Year End Single Family Sales ------------------ 2015 Year End Multi-Family Sales ------------------ 2015 Year End Condominium Sales ------------------ December 2015 Single Family Sales By Town ------------------ December 2015 Single Family Monthly Sales Comparison ------------------ December 2015 Multi Family Monthly Sales Comparison ------------------ December 2015 Condo Monthly Sales Comparison ------------------ 4th Quarter 2015 & 2014 Comparison Single Family ----------- 4th Quarter 2015 & 2014 Comparison Multi-Family ----------- 4th Quarter 2015 & 2014 Comparison Condominium About the Rhode Island Association of REALTORS® The Rhode Island Association of REALTORS®, one of the largest trade organizations in Rhode Island with more than 4,400 members in approximately 750 offices, has been serving Rhode Islanders since 1948. Advocating for Rhode Islands 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 1,400 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 and who subscribe to a strict Code of Ethics. 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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