What is the market doing right now?

(The Money Pros) - The market is in recovery - the median price has been generally increasing since November 2009. This is principally due to there being fewer foreclosures.

At one point, RI was tied with Michigan in leading the nation in foreclosures. Now, the foreclosure sale rate in RI has now approached the national rate – roughly 30% of homes being sold are distressed.

Traditionally, we compare our stats for one year with the previous year. Right now, that shows a misleading picture because last year had an $8,000 tax stimulus.

Comparing the second quarter with 2009, the median price -which is generally of most interest to consumers - had increased 7%. Distressed sales have fallen 17% from 2010 and now comprise 28% of the market, which will lift the median price up.

About the Rhode Island Board of Realtors
The Rhode Island of REALTORS® (RIAR) is a private, trade association made up of real estate licensees who subscribe to a strict code of ethics as defined by the National Association of REALTORS®. RIAR is the primary provider to our members of the following:

• real estate education,
• forms,
• communication,
• technology, and
• legal information and updates.

The Association provides tools to enhance productivity for its members. It also plays a major role in advocating at the State House and Congress for homeowners. Recently, we have actively promoted the benefits of the Mortgage Interest Deduction intact from those in Congress who would restrict its use and tried to defeat a mandatory 20% down payment (known as the Qualified Residential Mortgage.)

The Rhode Island Association of REALTORS® owns the State-Wide Multiple Listing Service (MLS). This is the vehicle where agents share their listings and commissions through MLS. It provides statewide exposure for seller’s listings.

The Association also offers the RiLiving.com, which is the #1 real estate consumer website in RI which displays all MLS listings on the internet.

We are looking for the market to continue to recover, with a few bumps along the road. Overall economic conditions play a key role in home sales so that the housing recovery is inextricably tied to economic improvement.