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December 10, 2007

Update: R.I. home prices dropped again in October

The median price of single-family homes in Rhode Island in October was $236,000, the lowest price recorded in any month in almost three years, according to a report released this morning by The Warren Group, which tracks real estate sales across New England.

There were 643 homes sold in Rhode Island in October.

October’s median price was 10.3 percent below the median price in October 2006, which was $263,000.

The median price in the first 10 months of the year was $258,000, 4.4 percent below the median price of $270,000 recorded during the same time period in 2006.

Sales of single-family homes in October fell by 18.3 percent from 787 in October 2006 to 643 this year. That followed a 27 percent drop in sales in September 2007.

Year-to-date sales are down 9.7 percent from 8,202 in 2006 to 7,403 this year.

The downward trend for both home sales and prices is also reflected in The Warren Group's report for neighboring Massachusetts and Connecticut.

-- Journal Business Editor John Kostrzewa

In Massachusetts, single-family home sales in October dropped by a double-digit percentage for the second month in a row, after a couple months of nearly flat sales.

The median home price also continued to fall, when compared to the same time period in 2006, according to The Warren Group report.

Single-family home sales dropped 17.1 percent from 4,399 in October 2006 to 3,646 in October of this year. That followed an 18.7 percent decline in September. But in July and August, sales stayed steady with an increase of 1.5 percent and a decrease of 1.5 percent, respectively.

Year-to-date single-family home sales are down 7 percent at the end of October from 46,797 during the first 10 months of 2006 to 43,535 this year.

The median price for single-family homes in October fell by the largest percentage so far this year, according to TWG’s traditional method of calculating prices.

The median price dropped 6.5 percent from $310,000 in October 2006 to $290,000 this year. The last time prices fell by more than 6.5 percent was in December 2006, when they declined 8.1 percent.

The year-to-date median price for single-family homes fell 4.4 percent from $329,000 last year to $314,482 this year.

In neighboring Connecticut, single-family home sales continued their steady drop in October, reaching the lowest number of sales during that month since 1993.

The median price of single-family homes also fell slightly, marking the fourth month of 2007 in which prices have dropped, according to The Warren Group.

Sales of single-family homes fell 17.5 percent, from 3,198 in October 2006 to 2,640 this year. The last time sales fell below that level during October was in 1993, when there were 2,590 sales. Connecticut at that time was in the midst of one the worst recessions in its history.

Year-to-date sales are down 7.4 percent, from 32,230 during the first 10 months of 2006 to 29,831 this year.

The median price of single-family homes dropped 0.8 percent in October from $267,000 to $265,000. Prices also fell in September, February and March, but have risen during every other month. The year-to-date price is up 1.1 percent from $279,900 last year to $283,000.


Posted by Jack Perry  at 3:11 PM | Permalink

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