WARWICK – Single-family home sales in Rhode Island increased 2.2 percent year over year in May, the second consecutive month to see an increase and a sign that the market is “moving in the right direction,” according to data released by the Rhode Island Association of Realtors today.

The 666 sales last month were slightly more than the 652 sales recorded in May 2008.

The median price of last month’s sales was $190,000, down 24.8 percent from the $252,500 year-ago median price.

In a statement, RIAR President Paul A. Leys said that despite the coming end of foreclosure moratoriums, the number of foreclosures in the Ocean State isn’t expected to “spike” in the coming months.

Foreclosures and short sales last month accounted for 34.2 percent of all single-family sales, down from 42 percent in April.

“We’re moving in the right direction,” Leys said. “It’s a slow process but we seem to be better able to absorb foreclosures now.”

Condominium sales were down 35 percent from May 2008, dropping to 90 sales. The median price of condos sold was $159,000, down from $231,500 in the same 2008 month.

“Condos were the last to see the effects of the housing downturn and now they’re playing catch-up in the correction,” Leys said. “We’ve seen no particular price trend in recent months. They seem to be up one month and down the next. Condo statistics can skew widely on the success or failure of a handful of particular complexes.”

Multi-family home sales in May were up 46.2 percent, rising year over year to 174 sales. But the median price was $82,000, down from $158,500 in May 2008.

Leys said the price has risen since April – when it was $69,900 – because there has been increased competition. Buyers are “starting to realize that bids have to be reasonable or they’re not going to get the property in the end,” Leys said. “The clearance sale mentality may be waning.”

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. The RIAR is one of more than 1,800 local boards and associations comprising the nation’s largest trade association, the National Association of Realtors. To learn more, visit www.riliving.com.