Home sales rose in R.I., Mass. last month

PROVIDENCE – Single-family home sales increased significantly last month in both Rhode Island and Bristol County, Mass., compared with a year earlier, according to figures released Tuesday.

The Rhode Island Association of Realtors reported 733 sales of single-family homes in November, a 61 percent jump from the 455 sales recorded during November 2008. The median sales price last month was $205,000, up 1.5 percent from the median price of $202,000 the same month last year.

In Bristol County, Mass., 324 single-family homes were sold during November, up from 230 in November 2008, according to The Warren Group. The median sales price was $240,000, down from $251,000 during the same month last year.

“The gain in home sales during the month of November isn’t completely unexpected,” said Timothy M. Warren Jr., CEO of The Warren Group. “There was a lot of financial turmoil last fall that led to a plunge in home sales in November 2008 and subsequent months, so we expected home sales to climb a bit. However, the jump was even sharper that we thought it would be.”

He also said “many buyers felt pressure to take advantage of the homebuyer tax credit before it was due to expire.” The federal credit was set to expire at the end of November before Congress decided to expand and extend the program through next April.

In Rhode Island, Realtors President Karl Martone said buyers were taking advantage of low interest rates and reduced prices.

“The real estate market is coming back strong despite the state’s economy,” Martone said. “Since prices and interest rates have fallen, a buyer can get into a bigger or better home for less money than they would have been able to at any time in recent history.”

He added that “the extension and expansion of the tax credit of up to $6,500 for move-up buyers and $8,000 for first time buyers means that consumers at all price points can get extraordinary deals if they act now.”

The Realtors also reported that 23 percent of all single-family home sales sold in November occurred through short sale or foreclosure, down from 37 percent in November 2008.

Separately, sales of multifamily homes in Rhode Island increased to 171 in November, up from 143 during November 2008, the association reported. The median price also increased to $114,900 in November from $105,000 a year earlier.

The Rhode Island condominium market also showed an uptick in sales.

The Realtors reported 126 condo sales last month, up from 67 in November 2008 but down from 148 in November 2007. The median sales price last month stood at $174,500, down from $198,000 last November.

“Rising prices typically follow an extended period of increased sales,” Martone said. “We’ve seen a three-month trend of rising sales in the condo market so we’re hopeful that rising prices will follow shortly and follow the trend of the single and multifamily markets. Right now, the stars are aligned for nearly all buyers. If they don’t buy now, they will kick themselves later. Right now, it is buy now or cry later.”

The Rhode Island Association of Realtors has more than 4,700 member Realtors, who in 2008 were involved in more than 10,000 transactions totaling $2.8 billion. Additional information is available at RILiving.com.

The Warren Group Inc. is a provider of New England real estate data and the publisher of Banker & Tradesman and other journals. Additional information is available at TheWarrenGroup.com.