East Providence Home Prices, Sales Sluggish In Second Quarter

According to the Rhode Island Association of Realtors, the median price of a single family home dropped two percent in the second quarter of 2011, when compared to the same period last year. Sales were down more than 20 percent year-over-year.

In East Providence, the news was mixed.

Sales of single-family homes were down nearly 41 percent, more than twice the state average, while prices dropped 7 percent from $188,500 to $175,000. Days on the market held steady at 81 days.

The condominium market, which had just 5 sales, fared better. Despite a 37 percent drop in sales, the median price rose more than 4 percent from $137,000 to $143,000. The number of days on the market rose slightly from 112 to 115.

There were just six multi-family homes sold during the second quarter, and again, the results were mixed. Prices rose nearly 2 percent from $182,000 to $185,000, but sales dropped 25 percent, and days on the market rose more than 190 percent from 31 to 90 days.

The current state median price is $205,000, compared to $210,000 in the same quarter last year.

Statwide, the median price of condominiums saw a 3.7 percent drop to $173,000 from $179,625 in 2011. The condominium market also saw a reduction is sales, falling 14.4 percent from 2010.

The multi-family market across Rhode Island also saw a sizeable reduction in sales, falling nearly 30 percent in the past year. On the bright side, the median price of a multi-family home held steady at $120,000.

In a press release, the Association pointed out that the news isn't that bad when the current quarter is compared to 2009. The problem is that sales figures from 2010 are skewed because of a federal tax credit used to boost the housing market. 

Stephen Antoni, President of the Rhode Island Association of Realtors, explained the effect of the tax credits on house prices.

“There’s no question that sales have fallen since the tax credit expired a year ago but we’re beginning to see them slowly creep back up again. June closed out the quarter with the highest number of monthly sales in 12 months,” Antoni said in a statement.

Another reason for the depressed market is the difficulty some borrowers have getting a mortgage, which can have a ripple effect at all price levels, Antoni added.

“Still, extremely tight lending standards remain a problem for the housing market. It’s a chain reaction," Antoni explained. "If first time home buyers can’t qualify for a home, sales of lower priced homes are delayed. And, if those homeowners can’t sell their home, they can’t move up to another price bracket."