FOR IMMEDIATE RELEASE
Editorial Contacts:
Katie Curnutte
The Warren Group
617 896-5370
kcurnutte@thewarrengroup.com
October Home Prices in Rhode Island
Fall to Lowest Level in Nearly Three Years;
Sales Continue Steep Slide,
According to The Warren Group
Sales on Track to Fall More Than 10 Percent in 2007
BOSTON, Dec. 10, 2007 – The median price of the 643 homes sold in Rhode Island in October fell to the lowest level in any month since The Warren Group began reporting state statistics in January 2005. Sales also continued to fall by double-digit percentages, a trend that started in September, according to TWG, which tracks real estate data across New England.
The median price of single-family homes in October was $236,000, the lowest price recorded in any month in almost three years. September’s median price of $246,000 was the second-lowest price recorded in that time period.
October’s median price was 10.3 percent below the median price in October 2006, which was $263,000. The median price in the first 10 months of the year was $258,000, 4.4 percent below the median price of $270,000 recorded during the same time period in 2006.
Sales of single-family homes in October fell by 18.3 percent from 787 in October 2006 to 643 this year. That followed a 27 percent drop in sales in September 2007. Year-to-date sales are down 9.7 percent from 8,202 in 2006 to 7,403 this year.
“Rhode Island’s housing market is still in the doldrums after July’s credit crisis,” said Timothy Warren Jr., CEO of The Warren Group. “We started seeing the effects in September, and they didn’t let up in October. And we’re not just seeing this trend in Rhode Island; sales and prices in Massachusetts and Connecticut also started to plummet in September and have continued declining in October, so I think this is part of a bigger trend. Foreclosures also play a part in keeping prices down, even as they flood the market with more homes for sale.”
Condominium sales in Rhode Island fell 9.6 percent in October from 199 last year to 180 this year. Year-to-date condo sales are down 5.6 percent from 2,129 to 2,010. The median price of condos stayed steadier, falling only 2 percent in October from $225,000 last year to $220,500 this year. The year-to-date price is down 2.2 percent from $230,000 to $225,000.
The plummeting sales in September come three months after July, when national problems associated with the subprime mortgage market began affecting global credit markets. Real estate transactions normally take about three months to close, so sales that are recorded in September were likely negotiated around the time of the July credit crisis.
Data on individual cities and towns, and statewide statistics dating back to 2005, available by request.
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.