By Kevin Shalvey
PBN Staff Writer
WARWICK – The median price of single-family homes sold in the state fell for the second year in a row as a year-end slump more than offset recent highs, according to figures released today by the Rhode Island Association of Realtors.
The median price for homes sold by Realtors in Rhode Island fell to $275,000 in 2007 from $282,500 the year before, a decrease of 2.65 percent. In 2006, the median price had dropped 0.14 percent in its first decrease since 1993, according to RIAR statistics.
“The correction that began in 2006 continued throughout 2007,” RIAR President Robert Scaralia said in a statement today. “The Federal Reserve’s recent rate drops should help balance the market further.”
The number of single-family home sold also dropped last year, falling 8.6 percent. Statewide, Realtors sold 7,600 single-family homes in 2007, compared with 8,313 during 2006.
Meanwhile, the average number of days on the market rose to 88 in 2007 from 79 the year before, an increase of 11.4 percent.
The final three months of 2007 saw the median sale price of single-family homes in the Ocean State fall to $259,000, a decline of 5.8 percent from the 2006 period. The number of houses sold in the fourth quarter fell 19.11 percent year-over-year.
Over the past two years, many buyers have been waiting for the real estate market to stabilize and the job market to improve – a factor that has affected housing sales nationwide, according to National Association of Realtors Chief Economist Lawrence Yun.
“There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase,” he said.
“As a result, the exact timing and the strength of a home sales recovery is a bit uncertain. A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008,” Yun said.
“Restoring consumer confidence is key,” the RIAR’s Scaralia said. “And the good news in that respect is that the decline in sales volume has been more significant than the decrease in sales price.
“What most homeowners lost in value recently, if anything, is minimal compared to what they’ve gained over the past few years.”
The Rhode Island Association of Realtors has nearly 5,000 member Realtors, who last year were involved in nearly 12,000 transactions totaling $3.95 billion. The RIAR is one of more than 1,800 local boards and associations that comprise the nation’s largest trade association, the National Association of Realtors. For more information, including town-by-town sales statistics, visit www.riliving.com.
