RI home sales drop 34 percent

Providence, R.I. – Earlier this week, investors were shocked by news that there had been a 27 percent drop in the sale of single family homes in July. Now we're learning that in Rhode Island the collapse was even worse.

Rhode Island home sales fell 34 percent in July, seven percent more than the national decrease. But the median price increased eight percent because far fewer distressed properties are on the market.

Karl Martone, president of the Rhode Island Association of Realtors, says they expected the decline because of the end of a federal home buyers tax incentive program.

"Let's face it, the consumer wants an incentive and when there's an incentive activity will pick up," Martone says. "It had more of a role than a lot of us expected."

Condo sales were down 18 percent but the biggest drop - 49 percent - was reported in the sale of multi family properties.