Foreclosures Continue to Plague Ocean State in 2009, Says RE/MAX of New England

PROVIDENCE, R.I.--(BUSINESS WIRE)--Foreclosure activity had a dramatic impact on the Rhode Island real estate market in 2008, particularly in urban areas such as Providence, Pawtucket and Cranston. The foreclosure market drove home sale prices in Rhode Island down 16 percent in 2008 compared to 2007, the biggest price drop of the New England states, according to the 2009 New England Housing Market Outlook, presented by RE/MAX of New England. For a full report, please contact Regan Communications Group.

Jay Hummer, Executive Vice President of RE/MAX of New England, said the already-high foreclosure activity in the region will be pushed even higher by rising unemployment, salary freezes, stock market losses and other consequences of the sputtering economy. Hummer said that any improvement in the market won’t occur until at least the third quarter of 2009.

Home foreclosures will continue to significantly impact the New England real estate market in 2009, creating opportunities for first-time buyers and real estate investors, but keeping home prices at or near 2008 levels, according to RE/MAX of New England.

Overall, 1,697 fewer houses changed hands in Rhode Island in 2008 than in 2007, a 15 percent decrease. On a bright note, home sales dropped less in Rhode Island than in any other New England state in 2008 except Massachusetts.

The big dip in sales prices, however, is directly connected to the high level of foreclosure activity in the Ocean State. Through the second quarter of 2008, about 1.2 percent of Rhode Island homes entered foreclosure, compared to the national average of 1.1 percent. About 27 percent of 2008 home sales in Rhode Island were attributable to short sales or foreclosures.

Please refer to the 2009 New England Housing Market Outlook for a complete view of New England and how Rhode Island compared in greater detail.

About RE/MAX of New England:

RE/MAX of New England is affiliated with RE/MAX International. Since its inception in 1986, RE/MAX of New England has grown to over 275 offices with 3,200 sales associates throughout Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, providing residential and commercial real estate, as well as relocation and referral services. The RE/MAX Internet web address is www.remax.com.