According to statistics released today by the Rhode Island Association of Realtors, the median price of single family home sales fell three percent in August from 12 months earlier to $218,000. Sales activity also slowed by eight percent, though with the exception of last year, the number of sales was the highest recorded in August since August, 2005. A slight increase in pending sales - those under contract and expected to close in the coming months - indicates that sales activity will remain stable.
"We’re closer to a normal market than we have been in years. There’s a good balance between supply and demand,” noted Robert Martin, President of theRhode Island Association of Realtors. "We'll see some ebbs and flows from month to month but foreclosures and short sales continue to be pushed out of the market which helps to drive prices upward over the long term." The number of distressed sales in the single family home market fell by 29 percent in August from 12 months earlier.
The condominium sector followed the same trend line as single family sales with median price down three percent from a year earlier to $192,200 and sales activity down by 24 percent. The number of distressed sales fell by 42 percent during the same time period.
Though sales among multi-family properties declined by nine percent, median sales price climbed to $169,000, a 25 percent increase from August, 2013. Once heavily marred by short sales and foreclosure sales, the number of distressed sales fell by 24 percent in the multi-family market from a year ago.
“There’s something for everyone in this market. Buyers can take advantage of interest rates that have remained near historic lows and many of those who have waited for gains in equity to be able to sell, are now in the position to do so,” said Martin.