NEW: RI Home Sales Continue Downslide
Tuesday, March 15, 2011
Rhode Island homes sales continued their spiral down with a -12.7% decrease month-over-month, according to the March 2011 RE/MAX of New England Housing Report.
The RE/MAX review shows were 414 homes sold in February 2011 vs. the 474 homes sold in January 2011. On a year-over-year basis, home sales were down -12.8% from 475 homes sold in February 2010.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTIncreased Inventory May Boost Sales
In contrast, Rhode Island is also the only state with an increase in inventory of 4.4% and an increase in median price. RE/MAX reports, “The median selling price in February was $205,000, an increase of 2.8% compared to $199,500 in January 2011.” Predictions are that an increase in inventory will eventually drive prices down if the market begins to stabilize.
“Buyers are experiencing tighter lending while investors are aggressively taking advantage of the market with cash purchases. This trend will continue as foreclosure activity increases, producing additional inventory and reversing the downward trend in sales,” said RE/MAX of New England Executive Vice President Jay Hummer.
Enough Bad News to Go Around
Across New England, tighter credit standards and unfavorable weather conditions resulted in a decrease in home sales in February. Overall sales declined -13.8% month-over-month in New England led by Massachusetts, while prices also declined overall by -2.6%.
In comparison with other New England states, Rhode Island’s home sales decrease was third worst since January. Massachusetts took the biggest hit, dropping -21.9% in February from the previous month.
Vermont fell off to -16.8%, but that is somewhat mitigated by the fact that it is the only New England state with a year-over-year increase, with 243 homes sold in February 2011, versus 216 in the same month last year.
Maine finished in fourth in the far-from-upbeat news with a drop of -10.7%, trailed by Connecticut at -7.8%.
One Corner of Cheer
The sole good tiding within New England, however muted, was New Hampshire enjoying a +1.6% increase in home sales from January 2011. But they too dropped off at a -1.6% rate in overall sales from February 2010 to February 2011.
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