The sales of single family homes dropped by 23% from last year in East Providence and posted the lowest number of sales for the month on record. The average sale price also dropped 6% leading to a total drop in market volume of 27%.
Rhode Island sales as a whole were up 24% over last year with prices also declining 7%. Total market volume across the state was up by 15% over last year. (Click graph to enlarge.)
These numbers are somewhat alarming in that the East Providence numbers, in terms of unit sales, represent a 47% negative trend as compared against the state. The seasonably warm weather, lack of snow and historically low interest rates usually create strong environments for home sales, especially in the month of March where we historically begin to see increased sales leading into April.
Currently there are 187 single family homes for sale in East Providence with 49 (26%) being priced at the median sale price or lower. This is a firm indication that the overall pricing strategy being employed in the city by a majority of home sellers is not aligned with actual market numbers.
A number of factors may be responsible for the dismal numbers including the uncertainty produced by decisions of the fiscal oversight committee. Among these are the gradual elimination of the homestead exemption, the elimination of the early pay discount and a proposed water/sewer increase over the next few years of between 10% to 13%. These decisions along with the elimination of programs such as middle school sports and other city sponsored programs for youths, adults and seniors have have collectively produced a chilling effect on future home owners.