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R.I. Home Sales Outperform Other States

For the fifth consecutive month, RI home sales have outperformed the rest of New England.

For the fifth consecutive month, Rhode Island home sales have outperformed the rest of New England. According to the recently released RE/MAX of New England Monthly Housing Report for October - the latest month for which data is available – home sales in the Ocean State jumped 43 percent compared to October 2011.

Still, the news is even better because the number of homes sold is joined by other encouraging statistics. Available inventory dropped from 8,614 properties in October 2011 to 6,130 properties this October. That 28.8 percent decrease translated to a rise in median price, up 4.4 percent from $182,000 to $190,000!

October isn’t the only month of growth which has had buyers, sellers and realtors cheering. In September, Rhode Island home sales were up more than 17 percent. August home sales were up 25 percent and July home sales grew by 32 percent. June’s year-over-year home sales increased 24 percent. This is exciting growth and it’s great to see Rhode Island home sales running on all cylinders for this extended period of time.

Are you thinking about buying or selling a home or are you just curious about the market in your community right now? We took a snap shot of activity in the Patch communities of Coventry, East Providence, North Kingstown and Smithfield for the last three months to help you get a better idea of how property is moving.

Coventry has had an average of 318 homes on the market with a median list price of $201,583 for the last three months. The data shows 40 homes are being sold per month with a median price of $162,350.

In East Providence, an average of 270 homes has been listed on the market during the last three months with a list price of $189,900. What’s sold? About 35 homes per month with a median price of $143,733.

Over the last three months, there has been an average of 262 homes for sale in North Kingstown with an average median list price of $166,566. On average, 31 homes are changing hands each month with an average median price of $150,000.

In Smithfield, there has been an average of 129 properties listed for sale from August until October at a price of $253,966. Each month, an average of 16 transactions is being closed at a price of $225,983.

This is great activity, and preliminary signs already indicate that it may continue during the early parts of winter with pending home sales in Rhode Island up more than 38 percent, from 747 in October 2011 to 1,033 in October 2012. The election is also behind us, so we should begin to see consumer confidence rebound from the pre-election dip it took leading up to November 6th.

It has been a long road back to a normal real estate market since the bubble burst, especially in Rhode Island. But now, it looks like we are well on our way and I’m excited to review November’s data to see if Rhode Island will lead New England in home sales growth for a sixth straight month.

Dan Breault is the Executive Vice President and Regional Director, RE/MAX of New England. For more information, visit www.REMAX-NewEngland.com

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

OldTownie December 06, 2012 at 12:36 AM
Scott, Using 08-09 numbers makes no sense. That was smack dab in the middle of the housing bubble. If your waiting for housing to get back to that level, your going to have a very long wait. Housing was over-valed by 20-25% during the housing boom, demand was at an all time high. That's why it all melted down, over-valued houses, with mortgages that were not supported by the value. Why do you think so many people are underwater?
Scott Madison December 06, 2012 at 02:18 PM
Good point OldTownie, but 07 was the high but by 08 into 09 the market was on the way down. Not everyone who bought in that time period are underwater, some are who bought and lived outside of their means. Regardless of the prices, the main message was my last 2 paragraphs. I would think it is hard to counterpoint how poor this state is run, how bad it is for business, how bad it is for unemployment and employment opportunities, high corruption and cronyism at the local and state levels, high state & local sales taxes, high property taxes, retirees leaving in droves due to the high estate taxes, unsustainable union pensions for police, fire and teachers, a sub-standard education system, 25% (1 in 4 people) of the state on food stamps, and at least 2 towns (possibly growing) in bankruptcy. The bottom line is, why anyone would move to this state? What business in their right mind would move to this state (unless the state gives away the farm in tax subsidies)? Sure we might get a few more Walmarts or other retail outlets paying $10 an hour with no health benefits, but without industry and corporations with mid to high paying jobs more people will be welcomed (like I was) with "Why the hell did you move here, to Rhode Island?"
NK Parent December 06, 2012 at 03:49 PM
Those "tax subsidies" are one of the main things other state's provide to get themselves a higher spot on the "State's To Do Business In" list. RI has a lot of problems in this regard (over-regulation, etc.) but we're also going to need to step up subsidies too if we want to be serious about attracting businesses. Hopefully, the 38 Studios fiasco hasn't put a damper on this.
OldTownie December 06, 2012 at 04:36 PM
I would argue that subsides (tax or otherwise) are only a small part of the problem. RI has no real infrastructure that would be appealing to a business. No rail, bad roads, or education system does not produce valuable workers, Quonset point is a multimillion dollar joke, and most importantly, union presence. Why would anyone bring a business here when you can pay a worker $10 less per hour in North Carolina?
Pam B. January 02, 2013 at 09:40 PM
Unfortunately this article only reflects more upscale towns and neighborhoods. Where are the statistics for cities like Central Falls, Providence and Woonsocket? The sales are up in RI because the majority of them are foreclosures and short sales being scoffed up by investors, and those ridiculous sale prices are causing neighboring home values to drop STEEPLY. Doesn't sound like anything worth getting excited about.

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