WARWICK – The number of single-family homes sold in Rhode Island rose 28 percent last month compared with a year earlier as prices continued to drop, according to data released Tuesday by the Rhode Island Association of Realtors.

The median sale price fell 8.2 percent to $201,050 in September, down from $219,000 a year earlier, the group said. First-time homebuyers also benefited from an $8,000 federal tax credit, which is scheduled to expire on Dec. 1 but may be extended.

The association reported 762 sales in September, down from 768 in August, 795 in July and 805 in June. The association said there is currently a 6.8-month supply of homes on the market, down from a high of 14 months’ worth in January. The Realtors consider a six-month supply to be a balanced market.

Sales of multi-family units also fell lower heading into the fall, with the association reporting 164 sales in September, down from 181 in August and 211 in July.

The median price of a multi-family property fell 15.2 percent to $114,425 in September compared with a year earlier. However, it represented a significant increase from the August median price of $80,000.

“It seems that we may have hit bottom in the multi-family market,” said Paul Leys, president of the Rhode Island Association of Realtors. “Investors and first-time buyers were snapping up investment properties at fire sale prices but the frenzy seems to have slowed. Prices in this market are finally beginning to stabilize. We’re seeing less than a six-month of supply of multi-family homes on the market, which indicates a seller’s market. ”

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.