The Rhode Island Association of Realtors released November  sales this week, despite September and Octobers gains, single family homes were  down 16.05 % from November, 2007. The bright spot is in the muti-family sector, which saw sales increase by nearly 50%, this is a sign that investors  and first-time buyers are definitley returning to the market.

 Here is a summary of the findings: 

• The median price of a single family home dropped 23.58% to $202,500
• 168 of the 455 sales were sold as short sales or through foreclosure.
• The median price of the 287 remaining was $242,000.
• The median sales price dropped from $217,250 to $198,000 and the number of units sold fell 54.7 %
• 52 of the 67 sales involved short sales or foreclosures.
• Multi-family properties saw a fall in median price from $215,000 to $105,000
• The number of multi-family properties sold increased 45.9 % to 143 properties compared to the November 2007 level of 98.
• 111 of the 143 sales were distressed sales.

This Week’s Real Estate Insight:

Hopefully, this is a small blip in in the trend of increased sales that we were seeing in September and October.  Preliminary sales data for December show single family home sales up year over year.

 

 Listen to this week's show here: [47:51m]: Play Now | Play in Popup | Download

The National Association of Realtors just released The 2008 Cost vs. Value Report.  The Report compares construction costs with resale values for 30 midrange and upscale remodeling projects comprising additions, remodels and replacements in 79 markets across the country and found that exterior remodeling projects return the most money as a percentage of cost.

 The resale value of any given remodeling project depends on a variety of factors; A home’s overall condition, availability and condition of surrounding properties, location, and regional economic climate are all factors that will influence the value of any remodeling project. Not every neighborhood will support additional renovations, that’s why it’s important to consult with professionals like Realtors in your area. Realtors see hundreds of homes every year and can provide valuable insight into what projects and improvements will make a difference with buyers in your area.

Here are some of the highlights from the survey:

•          Wood deck additions and all types of siding replacements returned more than 80 % of project costs

•          All types of window replacements – upscale and midrange– 76 %

•          A major midrange kitchen remodel: 76.0 %

•          A minor midrange kitchen remodel: 79.5 %

•          A midrange bathroom remodel: 74.4 %

•         A midrange attic-to-bedroom conversion: 73.6 %

•        Midrange basement remodel: 72.7 %

•          The regions that generally returned the lowest percentage of costs were New England,  East and West North Central, and Middle Atlantic

 This Week’s Real Estate Insight:

While these renovations will not return 100% of the investment, they often can mean the difference between your house even selling at all, potential buyers “become their own contractors” and go around adding up all the potential costs and subtract that from their offering price.  You might be apprehensive about a major renovation in this economy, but that can work in your favor; you can probably bargain with contractors as  they are feeling it too.  But don’t go just by price, make sure you get good references for contractors

 

 Listen to Sally and Steve here: [47:26m]: Play Now | Play in Popup | Download