Multi-unit housing market was 'bargain basement' at end of 2008
2:11 PM Wed, Feb 04, 2009 | Permalink
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The multi-unit housing market in Rhode Island during the last three months of last year looked like a department store the day after Thanksgiving: buyers poured in and snapped up bargains. The median sales price for multi-unit houses for October, November and December was half what it had been the same three months a year earlier. But the total number of properties sold in that period doubled, according to sales figures compiled by the Rhode Island Association of Realtors. Those trends were slightly sharper in December, indicating the trend grew as the year went on. In all, last year saw prices fall by about a half and sales increase about a third when compared to 2007. In the fourth quarter of last year, 542 multi-unit houses sold, up 93 percent from the same period in 2007, when 281 sold. Meanwhile, the median sales price fell 51 percent, from $215,000 in 2007 to $105,000 last year. "People are snatching up multi-family properties at bargain basement prices, which is helping to reduce inventory," Paul Leys, president of the Realtors association, said. "If you're a buyer, there are tremendous deals out there." Providence, as would be expected, saw the greatest activity, with 280 properties moving in the fourth quarter last year, just one shy of 2007's sales volume for the entire state. The 280 properties represent a 152 percent increase from 2007. Other communities where the volume more than doubled included the older industrial centers of West Warwick, up 112 percent; Central Falls, up 200 percent, and Woonsocket, up 213 percent. The average number of days multi-unit properties stayed on the market also trended up in the fourth quarter -- by 16 percent -- and more sharply in December, 33 percent. That forecasts even better bargains ahead, as prices tend to fall as the days on the market rises. The Realtors association tracks sales made through its State-Wide Multiple Listing Service. The system may overlook sales by owners and by brokers other than Realtors. 
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It's good to see that things are on an upward swing in the multi-family housing market. Investors are taking advantage. Now that there will be a $15,000 tax credit to homebuyers, wait to see what's in store for 2009.
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