Providence RI Real Estate Market Update - Homes and Condos (YTD-10/31/09)

The Providence RI Real Estate market has been decimated by the recession of 2008-2009. Both single family homes and condominiums have seen steep declines in values despite the substantial increase in units sold. Inventory is plentiful with 236 homes available and 116 condos on the market. The homes listed range in asking prices from $30,000 to $635,000 and have an average list price of $167,605. The condo listing range is from $9,900 to $2,350,000 with an average asking price o $324,765. Pending sales indicate that the market may be beginning to turn upwards. The 150 homes currently under contract report an average asking price of $117,797 which is higher than the average 2009 selling price of $95,029. Condo values are still in decline due to the volume of foreclosures at the low end of the market.

The first-time home buyer continues to dominate the market due to the $8000 tax credit, lower prices and interest rates.  Investors are taking advantage of bank owned real estate which is discounted by the lender to sell quickly.  Move-up buyers and those downsizing are waiting for more favorable selling conditions which may not occur until late in 2010 or 2011.  In addition, the tax credit incentives expire in April which will have a major impact on activity at the lower end.  The housing market will not see measurable improvement until the unemployment issues are solved.

The number of homes sold in Providence RI has increased by 43% to 634. However the average sales prices have dropped 52% since 2007. The affordability has contributed to the number of homes sold. Homes sold at an average sales price of $95,029 with a selling range of $10,250-$432,500. Homes sold in 82 days and at a sales price to list ratio of 93%. 

There were 95 condos sold YTD as compared to 105 units sold in 2008. The average selling prices declined sharply from $301,521 in 2008 to $141,060 partially due to the number of Providence RI foreclosures. Buyers are showing a preference for single family homes as they have better financing options. Condos sold in 112 days in 2009 with a sales price to list ratio of 90%, an indicator of sellers taking low offers for their units.