March Home Sales in East Providence Are Worst on Record

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 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. 

March 2012 Home Sales - 17

Pending Home Sales - 51

Homes Currently in The Market - 187

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Carol April 11, 2012 at 11:58 AM
In 6 to 12 months I am planning to put my house up for sale due to the cost of living in East Providence (mostly property taxes) and the State. Between the school, police and fire system they are putting us out of the City, I don't know who will be paying for your contracts but it will NOT be me. If you don't show any respect for EP residents than we will NOT show any respect for you (we can't afford you any more).
Bob C April 12, 2012 at 08:09 PM
Why did the EP'ers fall for the "Working Families Coalition" that was simply a union front and vote out the reformers and the vote wasn't even close? Didn't make sense, and now look at them, about bankrupt.
S April 13, 2012 at 02:53 AM
WOW Joe we have a steady decline for almost two years maybe longer and you try and place the blame squarely on the very people who are trying to dig you out of the mess that this council majority and entire school committee created. A commission that has been around for a few months and just recently implemented these changes you speak off. Remember this SC made special education an issue and this council railroaded the Conley efforts for deficit elimination for the great Rossi plan for deficit reduction. THE GREAT ROSSI PLAN and of course lower the bar in the high school because students are failing, not that the teachers aren;t teaching but you are asking to much of them. WHAT A BUNCH OF LOSERS these politicians are the Rossi plan and not paying Bradley is what brought the state in to your fine city and forced the changes being implemented by the budget commission, so if you want to complain place the blame it belongs squarely on your good buddies the Rossis and of course the fool and joke Rogers You sound so much like him trying to deflect the blame for his own studipity I bet Abigail or Mrs Rossi takes this post down to protect themselves and you and the fool Rogers.
S April 13, 2012 at 02:55 AM
will it be approved or will it be deleted that is the question
Joe Botelho April 13, 2012 at 02:25 PM
Aww Heck, I hope they don't take the post down. Now that we know who you are we can anxiously await to see you support in the next round of elections. I would say that from the calibre of your comments, most candidates would be embarrassed to have your support. For those in Riverside in particular. And of course you never get your facts straight which leads us all to beleive that your intention for your bizarre "posts" and replies are a misguided attempt at propaganda to support a particular politcal faction. But I'm sure most intelligent people realize that about you at this point. We'll be watching.
david sullivan April 17, 2012 at 04:57 PM
thankyou business hostile general assembly for making RI the worst ,yes 50th, place to own a business....which leads ofcourse to weak demand on housing and price deterioration...thankyou dan daponte and helio melo for making it even worse! I hate to say it but i TOLD YOU SO...( I ran against daponte last election)- david sullivan
Rags 1 April 17, 2012 at 07:46 PM
It is not hard to blame the fall on gravity when you are half way down the cliff. The housing market collapse is more to do with Wall St and the market manipulators than a local city council. We need less "I told you so" and more viable solutions some of which are already being done. I guess all of these problems happened just two years ago and this council is at fault. What nonsense. People are responsible for their own lack of govenment participation, not the CC whomever they may be given this situation in EP. It has been cumulative and a result of a "full service" attitude in spending and the lack of regionalization of services.
Joe Botelho April 18, 2012 at 03:32 PM
We can more or less pinpoint the genesis of the “Great Recession” and all its impact on state and local governments, to the repeal of the Glass-Steagall act in 1999, which set Wall Street free to feed on the American public. (Read about it here http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act ) So there is no arguing the point how it all got started. The problem is that everyone was on the bandwagon by increasing their state and local budgets during the boom years. Considering property values and pay for the average worker is the same, if not worse, than it was in 2001, state and local budgets ought to reflect that as well, which would call, for example, a $40 million decrease in EP’s budget (Read more here http://eastprovidence.patch.com/blog_posts/east-providence-finances-are-about-to-crash-anyone-at-the-helm#c ) So the solution may be as easy as taking the city’s 2001 budget and applying those numbers today. It happens in the business world all the time in the face a decline in demand or profitability, or they close up. It is problematic, regardless of what caused all this to ask taxpayers to pay 43% more in taxes than they did ten years ago when their assets and income are flat. For more on middle class pay go here: http://front.moveon.org/bernie-sanders-opens-up-a-can-of-whoop-ass-on-the-gop-regarding-the-buffett-rule/?rc=daily.share&id=39621-20068175-IwJbFXx
Govstench April 20, 2012 at 11:21 AM
Joe, your correct on Glass-Steagall - should never have been repealed. What we have today is a replay of the Great Depression in a milder form. The government cannot be trusted to do the right thing - federal government numbers on unemployment are all false, national unemployment is more like 20% and the money is rapidly be devalued by a dysfunctional Congress. There needs to be a wholesale clean out of the government with people of integrity and caring about the country instead of lining their pockets. The voters need to also wake up and smell the coffee. EP voters were duped in the last election and the rubber stamp council/committee are listening to the unions. The budget commission came in to restore order. Yes, it will be painful and the real estate market is taking it on the chin. RI has a long way to go to restore economic confidence in its people - we just have too many crooks roosting in that statehouse.


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