WARWICK – Single-family home sales in Rhode Island fell slightly – just 1 percent – in March compared with the same year-ago month, according to data collected by the Rhode Island Association of Realtors.
March sales dropped by only five homes, with 484 sold last month.
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But the median price of those sales dropped 25.9 percent, falling from $243,000 to $180,000 year over year.
RIAR pointed to the rising number of homes now under contract – where the sale has not closed – as a sign that the single-family home market has now “stabilized.” Those contracts rose 35 percent in March, jumping to 1,355 last month from 1,004 in the same 2008 month. Pending sales rose 19.51 percent in February.
While foreclosures and short sales accounted for 44 percent of single-family home sales in March, they accounted for about 78.2 percent of multi-family home sales.
Multi-family home sales more than doubled from March 2008 to last month, rising from 103 sales to 211. But the price of those homes has plummeted, with the median price hitting $70,000 in March, a 55 percent drop from the $156,000 median price a year earlier.
RIAR put the median price of multi-family home sales that weren’t foreclosures or short sales at $163,500.
Paul A. Leys, RIAR’s president, said in a statement that the “fantastic bargains” on the market are being buoyed by the federal first-time homebuyer tax credit.
He added, “[But] you need to know what you’re getting into. In most cases of a foreclosure, consumers are buying properties in as-is condition and that often means that considerable restoration is needed. If they’re not buying the distressed market, they need to be more realistic in terms of price.”
Condominium sales have “begun to slow,” RIAR reported. Year-over-year sales fell 21.8 percent, with 68 sales compared with 93 sales in March 2008. Of those sales, 22, or 32.4 percent, were either foreclosures or short sales.
The median price of a Rhode Island condo dropped from $199,000 to $166,000, a 16.6 percent drop. The median price without “distressed” sales would have been $256,000, RIAR reported.
Leys said, “The reason for the sudden slowdown in condo sales could be the increasing affordability of single-family homes. If you look at the median condo price of $166,000, where buyers will also have to pay association fees, the median single-family home price of $180,000 could seem pretty attractive by comparison.”
The Rhode Island Association of Realtors has more than 4,700 member Realtors, who in 2008 were involved in more than 10,000 transactions totaling $2.8 billion. The RIAR is one of more than 1,800 local boards and associations comprising the nation’s largest trade association, the National Association of Realtors. To learn more, visit www.riliving.com.
