NEW: Number of Houses Sold Up 22%, But Prices Down
Wednesday, May 02, 2012
The number of homes sold is up 22% in Rhode Island over last year for the first quarter of 2012. According to the RI Association of Realtors, more than 1,500 single family homes were sold in the first quarter of 2012 - the highest number since 2007. The bad news is the median price feel from $195,000 to $173,250.
The bad news was fueled by the increase in foreclosure or short sale which accounted for 34% of all sales -- an increase from the 32% recorded for the first quarter of 2011. The increase in distressed sales, accordingly, led to a decrease in median price of overall single family resales.
According to RI Association of Realtors:
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe first quarter single family median price of convention sales, which exclude distressed sales, was $215,000, 24% more than the median price of all sales including foreclosures and short sales.
Newport, Jamestown, Charlestown and Westerly saw an increase in both sales volume and median price of single family home sales in the first quarter, indicating that the second home market may be coming to life. Realtors are concerned that a proposal to impose a 13% tax on short term private home rentals could dampen Rhode Island’s housing market, particularly month-to-month, student rentals, and the second home market, believed to be a substantial component of the state's housing supply.
"We're vigorously fighting the Governor’s proposal to tax homeowners if they rent their home out for fifteen days or more a year. A lot of our homeowners depend on that income to make their mortgage payments on their second homes, or in some cases, their only home. They already pay income and sales tax. An additional tax will certainly discourage investment in Rhode Island and that's the last thing we want to see now," said Jamie Moore, President of the Rhode Island Association of Realtors.
Rural areas like North Smithfield, Foster, Burrillville, North Kingstown, Coventry and West Greenwich, also saw both rising sales and prices in the single family home market.
The multi-family market saw a 13% increase in sales and a four percent drop in median price, from $120,000 to $115,000. Like the single family market, prices were affected by an increase in the number of distressed sales year to year, of 8%. Fifty-five percent of all multi-family sales involved distressed properties from January through March.
Condominium sales rose by almost 4% while median price fell 21% to $135,000. The number of distressed condominium sales increased 51% from the previous year and accounted for 35% of all condo sales in the first quarter.
