Home Sales, Prices Remain Sluggish

The median price of a single-family home in Rhode Island dropped two percent in the second quarter of 2011, when compared to the same period last year, according to the Rhode Island Association of Realtors. Sales were down more than 20 percent year-over-year.

In Barrington, though, there's a reason for optimism. While single-family sales did drop nearly 20 percent, there was a small increase of less than 1 percent in home prices -- from $354,500 in 2010 to $355,00 this year.

Days on the market for a home also decreased slightly from 112 to 110 days.

There were no multi-family or condominium sales recorded in the second quarter of 2011. This isn't unusual, since only one of each was recorded in the town during the second quarter of 2010.

The current state median price is $205,000, compared to $210,000 in the same quarter last year.

Statwide, the median price of condominiums saw a 3.7% drop to $173,000 from $179,625 in 2011. The condominium market also saw a reduction is sales, falling 14.4 percent from 2010.

The multi-family market across Rhode Island also saw a sizeable reduction in sales, falling nearly 30 percent in the past year. On the bright side, the median price of a multi-family home held steady at $120,000.

In a press release, the association pointed out that the news isn't that bad when the current quarter is compared to 2009. The problem is that sales figures from 2010 are skewed because of a federal tax credit used to boost the housing market.

Stephen Antoni, president of the Rhode Island Association of Realtors, explained the effect of the tax credits on house prices.

“There’s no question that sales have fallen since the tax credit expired a year ago but we’re beginning to see them slowly creep back up again. June closed out the quarter with the highest number of monthly sales in 12 months,” Antoni said.

Another reason for the depressed market is the difficulty some borrowers have getting a mortgage, which can have a ripple effect at all price levels, Antoni added.

“Still, extremely tight lending standards remain a problem for the housing market. It’s a chain reaction," Antoni said. "If first time home buyers can’t qualify for a home, sales of lower priced homes are delayed. And, if those homeowners can’t sell their home, they can’t move up to another price bracket." 

Click on the following for more information:

Single family

http://www.statewidemls.com/RealtorResources/SalesStats/Documents/2ndQ-Single2011.pdf

Multi family

http://www.statewidemls.com/RealtorResources/SalesStats/Documents/2ndQ-Multi2011.pdf

Condominiums

http://www.statewidemls.com/RealtorResources/SalesStats/Documents/2ndQ-Condo2011.pdf