While it is impossible to say this year has been less than encouraging as far as the real estate market goes, let’s move past the obvious and really look at the figures.  The fact remains, that while overall Rhode Island is considered a declining market, 1/3 of the state’s cities and towns are actually appreciating in value.  And, while the rest of the state’s areas are down as a whole, there are pockets of these towns that are more than holding their own.  Real estate is local.  There is no national weather forecast.  There is no national real estate market, and even within Rhode Island the same is true.

Comparing the first half of last year to the first half of this year shows an overall decline in homes sold as well as sold price.  But, suprisingly, we see a spike in the condo market.  Not only did more units sell (300), they closed for a higher amount than the previous year! 

Why the move to condos? There are a lot of reasons why condos have been so preferable.  First, there are more newer condos than newer homes on the market.  The ration of condos under five years old on the market is roughly 40% of the inventory compared to 16% of single family homes.  So, if less maintenance is a factor in buying, condos have that covered.  Also, downsizers and new home buyers have shifted attention to condos.  Condo prices are smaller than the single family homes, and the first time buyer stil gets the tax rewards of home ownership.  As most people in this economy are two incom families, the maintenance issue looms large.  This factor is echoed by the downsizers.  No more mowing, painting and snow shovelling has its rewards!

We’ll see how the rest of the year plays out.  As always, these figures will be updated monthly.

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