here. / " title="HOME SALES in Rhode Island fell in May compared with the same month last year. For a larger version of this chart click here. /"/>WARWICK – Sales of Rhode Island single-family homes in May fell 10 percent, but their median sales price increased 5 percent compared with the same month last year, the Rhode Island Association of Realtors said Thursday.
The Realtors said that 601 homes sold in May, down from 667 the year before. The median price, meanwhile, rose to $210,000 from $199,900.
“Prices have been trending up for the past year and a half, despite slipping backward a bit in March and April,” association President Stephen Antoni said. “We’re pleased to see that prices regained their momentum last month.”
Antoni attributed the slippage in March and April to a run up of home prices during the same time last year as buyers raced to qualify for a federal tax credit. Buyers had to sign a purchase-and-sales agreement by April 30, 2010, and close by Sept. 30, 2010, to secure the credit.
Homes these days are taking longer to sell. The Realtors said the average home sold in May spent 161 days on the market, up from 86 last May.
The Realtors reported 6,602 single-family homes on the market last month, up 12 percent from May 2010. The number of homes on the market represented an 11-month supply. (A six-month supply typically reflects a market balanced between buyers and sellers.)
“The key to returning to a normal market is depleting the excess inventory of homes for sale,” Antoni said. “It’s great that we’re regaining values again, but we need to see more sales, which will result in fewer homes on the market.”
Antoni called on lenders to loosen credit markets to encourage the sale of additional homes.
Elsewhere in the market, the Realtors said sales of multifamily homes fell 6.3 percent to 134 in May from 143 a year ago. The median sales price rose 11 percent to $120,000 from $107,900 a year ago.
In the condominium market, May sales dropped to 109 from 111 a year ago. The median price slipped to $180,000 from $181,925.
