NEW: RI Real Estate Bucks National Trend - Up

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Tuesday, May 03, 2011

GoLocalProv Real Estate Staff

While nationally sales in all housing sales categories were 6.3 percent below the level seen in March 2010 and median price was down six percent,the Rhode Island Association of Realtors released sales statistics today which indicated that the median price of existing single family home sales rose one percent during the first quarter to $195,000 from $193,000 in the first quarter of 2010.

However, the number of houses sold from January through March declined 11 percent and the number of homes sold through short sale or foreclosure dropped 22 percent.

"The good news is that our prices are up, but sales activity is not as vigorous as we would like it to be. "The weather was a factor in the winter months and we didn’t have the benefit of the homebuyer tax credits like we did last year, but the biggest factor may be financing," commented Stephen Antoni, President of the Rhode Island Association of Realtors. "Though mortgage rates remain under five percent and homes are more affordable than they’ve been since 1970, extremely stringent lending standards seem to be holding sales back."

Condos

The condominium market fared slightly better than the single family market with median price rising four percent to $177,000 and sales declining only eight percent.

The number of distressed sales fell 11 percent year to year. The median price of condo sales also declined in March, to $160,000 from $165,000 the year prior, and the number of sales declined 12 percent. 

Multi-Family

Despite a ten percent gain in median price among multi-family homes, sales activity decreased 38 percent. The number of properties sold through short sale of foreclosure dropped 46 percent.

"Investors hit the multi-family market en masse when distressed sales were at their peak a couple of years ago. While we’re seeing a considerable slowdown in sales from that time, the sales activity and prices in the multi-family market are actually getting back to more normal levels now," said Antoni.

March multi-family sales prices remained stable (no change) but sales activity dropped 19 percent. Distressed sales in the condo and multi-family markets fell 13 and 25 percent, respectively.

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