Rhode Island Home Sales Rise by Double Digits in February

Rhode Island Home Sales Rise by Double Digits in February

Rhode Island’s single family home sales climbed 14 percent in February from twelve months earlier, according to statistics released Thursday by the Rhode Island Association of Realtors.  The median price of sales also increased, rising from $185,000 in February of 2014 to $194,500 last month.  The comparison of sales year-to-year are reported rather than month-to-month in order to avoid seasonal fluctuations.

“We saw quite a bit of closing activity last month but the harsh winter weather did cause problems with showings.  We may see decreased sales in the months ahead,” said Bruce Lane, President of the Rhode Island Association of Realtors.  The association reported a three percent decrease in homes under contract but not yet closed.

Multi-family home sales activity showed an increase in February of only one percent, but the median sales price of those properties rose eight percent from the prior year.  Pending sales also increased one percent.

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February sales of condominiums fell eight percent and median price decreased two percent. The slower condo market may be explained by lending guidelines that often require that the majority of the development be owner-occupied.  Many condo developments turned to rentals during the housing slowdown and have not yet returned to a majority of owner-occupied units.

“Though we had a tough winter, I think the signs look good for the spring market.  If anything, the harsh weather probably delayed some people from putting their homes up for sale.  We may see a significant increase in inventory as we head into April,” said Lane.
  
“I’m not surprised to see the number of home sales on the rise,” commented Lane.  “Interest rates are still low which helps to make ownership affordable and rents are rising every day.  If you're in the position to buy, it generally makes good financial sense.”