The Rhode Island Association of Realtors says home sales dropped again in August.
The average price for a single family home was $218,ooo, down 3 percent from last year. Condominium sales also slowed, but multi-family homes were a bright spot. Prices have climbed 25 percent from last August. Realtors Association President Robert Martin says foreclosures, and short sales have dropped significantly from a year ago. He says that's likely to drive home prices higher in the long term.
Providence Business News Editor Mark Murphy joins Rhode Island Public Radio's Dave Fallon for a weekly business segment The Bottom Line.
This week Dave and Mark talk with Bruce Lane, president-elect of the Rhode Island Association of Realtors. They discuss rising home prices in the state, the impact this bad winter has had on home sales and how the housing market affects the local economy.
When to Listen
You can hear The Bottom Line each Friday at 5:50pm.
October was another good month for home sales in Rhode Island.
The sale of single family homes in Rhode Island rose 19 percent between October 2012 and October 2013. During the same time frame the median price rose from $200,000 to $204,000. Sales of condos rose 11 percent over the year and the median price is up 17 percent.
Rhode Island Association of Realtors president Robert Martin said growth in the housing market is slow and steady with no negatives.
The partial government shutdown is proving to be a problem for some American home buyers. Most lenders require income verification through the IRS. The verification requirement is problematic because most IRS functions have been suspended.
Victoria Doran, president of the Rhode Island Association of Realtors, says it hasn’t caused a logjam yet but will if the government shutdown continues much longer.