According to the Rhode Island Association of Realtors (RIAR), if you are selling a home you can expect to get a little more money for it this month – though you might have to wait a little longer to sell. Last week, RIAR announced that the median price of single-family homes is once again on the rise in the state, up 4 percent since September 2010 and up 10 percent compared to a year ago[1]. October marked the “12th consecutive month of higher median prices,” reported RIAR.
Unfortunately, while those who are selling are getting more money, it is taking longer to actually sell. Single-family home sales in the area plummeted in volume in October, down 35 percent over the same time period in 2009 and down 11 percent just from a month earlier. RIAR blames the expiration of the federal homebuyers’ tax credit. “We’re not up against a deadline to take advantage of a major tax benefit this year,” explained RIAR president Stephen Antoni. “We’re measuring current sales against unusually high sales last year.” He pointed out that this caveat makes the slowdown “appear that much more severe”[2].
Interestingly, distressed sales have been hit the hardest in the area in recent months, with single-family distressed homes – those requiring foreclosure or short sales – fell 49 percent over the previous year. It is certainly possible this has to do with buyer skittishness caused by the robo-signer fiasco that has plagued lenders and continues to cast a shadow over buyer comfort levels when it comes to purchasing REO and pre-foreclosure homes.
[1] http://www.businessweek.com/ap/financialnews/D9JQIQO00.htm
[2] http://www.projo.com/business/content/OCTOBER_HOUSING_11-30-10_8JL76F7_v40.5e801e.html
