FOR IMMEDIATE RELEASE
Editorial Contacts:
Katie Curnutte
The Warren Group
617 896-5370
kcurnutte@thewarrengroup.com
R.I. Homes Sales Drop by Highest Percentage in 17 Years;
Prices See Largest Drop Since 1995,
The Warren Group Reports
Condo Prices Rise Despite 30 Percent Drop in Sales
BOSTON, April 16, 2008 – February sales of single-family homes in Rhode Island dropped by the largest percentage since the early 1990s. Condominium sales continued a volatile path to reach the third-largest decline since The Warren Group began tracking the state’s housing market in 1989, but condo prices managed to rise slightly, according to The Warren Group, which tracks real estate data across New England.
Single-family homes in Rhode Island fell 18.6 percent from 512 in February 2007 to 417, the largest percentage drop in any February since 1991, when sales fell 35.9 percent. There were 802 sales in the first two months of 2008, a 22.1 percent decline from the 1031 sales in 2007.
Median prices for single-family homes followed the same path as sales. Prices fell 4.7 percent in February from $257,000 in 2007 to $245,000 in 2008, the largest decline during February since 1995, when prices fell 6 percent. Year-to-date prices fell 9.1 percent from $264,000 in 2007 to $240,000 in 2008.
“This is the eleventh month in the past year that prices in the OceanState have declined,” said Timothy Warren Jr., CEO of The Warren Group. “Not good news for current homeowners, but hopefully this will be an incentive for homebuyers to purchase homes before the height of the housing season, in the summer months. There are still plenty of hurdles to jump before the housing market gets back on track – including the rising rate of foreclosures – but the warmer weather usually brings about a spike in homebuying activity.”
Condominium sales plunged with a decline of 30.2 percent in February 2008 but did not beat the record decline in February 2003 of 44.1.percent, or the decline of 36.5 percent in February 1991. Condominium sales fell 30 percent from 129 in February 2007 to 90 in February of this year. Year-to-date condo sales fell 27.9 percent from 301 to 217.
The median price of condominiums increased despite the large decline in sales. Median prices rose by 3.1 percent from $213,000 in February 2007 to $219,500 in February 2008. This increase counteracted the large decline of 18.1 percent in February 2007. The year-to-date median price fell 5.5 percent this year to $213,500 from $226,000 last year.
About The Warren Group
The Warren Group, based in Boston, is the publisher of Banker & Tradesman, The Commercial Record and a series of association publications. As the premier provider of real estate data in New England, The Warren Group offers a range of real estate products and services for professionals and consumers searching for real estate and financial information. For more information about The Warren Group, please visit www.thewarrengroup.com or call 617-428-5100.