Housing Trends Looking Up

South Kingstown’s housing market is leveling out, according to market trend data released Tuesday by the Rhode Island Association of Realtors.

While sales are down slightly statewide, South Kingstown saw more closings and less distressed sales last year than it did in 2010.

“It hasn’t been giant increase [in SK sales] from December last year to this year, but I think the prices themselves are certainly not increasing and people are getting a little more realistic perhaps about what go on,” said Angela Dupouy, president to the Kent-Washington Association of Realtors. “It can be hard to quantify.”

Median prices in town dropped slightly in 2011, but single-family home sales jumped 6.69 percent in South Kingstown – blowing away the 2.08 percent drop seen overall in Rhode Island. Statewide, South Kingstown saw the eleventh largest growth in sales. Median prices for single-family homes sold in 2011 in town, at $280,000 – though down $10,000 from 2010 values – are still $85,000 more than the state median mark.

“I don’t think prices are going up any time soon, but they are holding where they are,” said Dupouy, who is also a certified buyer representative at Randall Realtors in Wakefield. “They are at historic lows, but activity seems to be increasing.”

Dupouy said a number of factors are boosting sales in South County. She said banks are learning to work with property owners, limiting the number of distressed sales. Today’s low mortgage rates coupled with historic low prices are adding incentive to buy too, she said.

“One advantage right now is that you could actually be paying less in a mortgage than you are in rent,” said Dupouy. “That is one thing that’s driving a little more activity – rental prices have not dropped as significantly.”

Although federal housing grants have expired, Dupouy said there are still many counseling programs and loans available through Rhode Island Housing.

“There are more programs out there for people than they realize,” said Dupouy. “I suggest to anyone who has found problems that generally speaking they are not insurmountable. You may have to wait, work on your credit for a higher score, but a good mortgage originator will work with you. Get out there, see what’s going on and talk to a lender, because low prices and interest rates are going to be with us for little while.”