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House sales in R.I. slump again

09:24 AM EDT on Wednesday, July 2, 2008

By Lynn Arditi
Journal Staff Writer

The Warren Group yesterday reported that house sales in Rhode Island in May declined by double-digits for the 10th consecutive month — more evidence of the continued housing slump.

The number of single-family houses sold in May plunged nearly 14 percent, to 688 sales, compared with 799 sales in May of last year, according to the Boston research firm.

So far this year, the number of single-family houses sold in the state has declined about 19 percent, to 2,540 sales, compared with 3,135 sales during the first five months of last year. (The Warren Group data includes sales by owners as well as sales through real-estate agents.)

Prices also continued to fall. The median price of a single-family house in May fell 8.2 percent, to $245,000, compared with $267,000 in May of last year, the report said. It marked the 16th consecutive month of price declines. So far this year, the median house price is down almost 10 percent.

In Providence, the median price of a single-family house in May was $218,000, down 11 percent from May of last year, when the median price was $245,000, according to The Warren Group. So far this year, the median house price in Providence has fallen 18.3 percent.

“There’s still a long way to go until we see the market climb out of this long decline,” The Warren Group’s chief executive officer, Timothy Warren Jr., said in a statement. “Prices are still falling dramatically every month. At this rate, we could see a [statewide] price decline of nearly 10 percent during the first half of this year.”

On the positive side, house prices in May “didn’t fall quite as significantly as they have over the past several months,” Warren said, suggesting that “a few more people came out to shop for homes as the weather started to warm up.”

Last week, the Rhode Island Association of Realtors reported that the quickening pace of sales in May suggested that buyers were returning to the market. The Realtors reported that real-estate agents sold 652 single-family houses in May, up 27 percent from 513 sales in April. The Realtors data does not include sales by owners.

Rhode Island’s condo market so far has held up better. The Warren Group reported yesterday that the median condo price in May was $228,000, down 1.7 percent from $232,000 in May of last year. So far this year, the median condo price has fallen 2.2 percent.

Sales of condos in May declined 38 percent, to 161 sales, down from 260 sales in May of last year, according to The Warren Group. In Providence, 82 condos sold in May, compared with 150 in May of last year. So far this year, the number of condos sold in Providence was down 41.8 percent, to 318 sales, compared with 547 sales during the same period last year.

The median price of a condo in Providence in May was $208,000, down 3.4 percent from May of last year, when the price was $215,225, according to The Warren Group.

larditi@projo.com

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