R.I. home prices tumble 7%

By Patrick Anderson
PBN Staff Writer

PROVIDENCE – Single-family home prices in Rhode Island dropped 6.9 percent in October compared with the same period last year, the sixth highest price decline of any state, CoreLogic said Tuesday.

In the Providence-Fall River-New Bedford area, homes prices fell 2.9 percent for the month, according to the California-based real estate tracking firm.

Nationally, home prices dropped 3.9 percent year-over-year for October.

Statewide, sales of distressed properties accounted for a significant part of the home price declines. Excluding short sales and foreclosures, Rhode Island home prices dropped 3.2 percent in October.

In the Providence-Fall River-New Bedford area, home prices excluding distressed sales declined 2.5 percent.

“Home prices continue to decline in response to the weak demand for housing. While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance,” said Mark Fleming, chief economist for CoreLogic. “Looking forward, our forecasts indicate flat growth through 2013."

In Massachusetts home prices dropped 3.9 percent in October compared with 2010, CoreLogic said.