Rhode Island Housing Market Dips Again in October, The Warren Group Reports

Market prices slump across the board

RISMEDIA, December 13, 2006?The Rhode Island housing market slumped in October as the median sale price for condominiums dropped 12.2% compared to October 2005. Single-family home sales fell by double-digit percentages for the fourth straight month, according to a report released today by The Warren Group, which tracks real estate data across New England.

The median condo sale price in October dropped 12.2% to $225,000 from $256,250?the biggest percentage drop this year. Median sale prices now have fallen three straight months from the same period in 2005 after experiencing 5 to 40% year-over-year price increases early in 2006.

Condo sales, which have fluctuated throughout 2006, rose 8.8% in October, with 198 units selling compared to 182 in October 2005. Condo sales have now risen in five of the 10 months of 2006 but fell by double-digit percentages in April, May and July.

According to statistics issued by The Warren Group, the median sale price for single-family homes dropped 4.2% to $262,500 from $274,000 in October 2005. Prices had fallen by 4.6% in August and 3.6% in September.

Single-family home sales fell 10.3% in October with 774 transactions compared to 863 a year ago. Unit sales now have dropped by double-digit percentages in four straight months and six of the last 10 months. Home sales fell in three of Rhode Island?s five counties in October, with Newport?s 32.9% drop being the steepest, while Bristol and Kent counties registered sales increases. All five counties experienced price declines, with Newport falling by the biggest margin (11.7%) and Bristol by the smallest (1.7%).

?Our figures continue to show sluggishness throughout the Rhode Island housing market,? said Timothy Warren Jr., CEO of The Warren Group. While we’ll be looking closely for signs of bottoming out, our best guess is that we won?t see conditions turn around in a tangible way much before the middle of 2007.

Meanwhile, four of Rhode Island?s five counties posted condominium sales increases in October, led by Providence County (up 32.3%), while Kent County?s condo sales dropped by 46.3%. Newport County was the only region to see condo sales rise ? by 36.2% ? while Washington County experienced the largest drop (13.5%).

For the first 10 months of 2006, single-family home sales are down 8.9%, while the median sale price is up just 0.2%, to $267,500. During the same time period, condo sales are down 3.6%, and the median condo sale price of $230,000 is still up 5.5% over the first 10 months of 2005.

For more information, visit TheWarrenGroup.com.