The Rhode Island Association of Realtors reported 164 Multiunit houses sold in January, two and a half times the number sold last January. Distressed properties accounted for 82% of the sales and drove prices down drastically. Distressed sales include foreclosures and "short sales," where a lender accepts less than what is due on a mortgage to close the deal The median sales price dropped 40 percent from $152,000 last year to $91,000, and the average sales price fell 37 percent, from $173,638 a year ago to $108,874. One bright spot was the fact that the average days on the market was down 7 % from 106 days last year to 99. There are currently 1,223 active multis on the market statewide, and 558 pending. Buying a multiunit is a great way for first time buyers to get into a home. You qualify for preferred owner occupied mortgage rates, and the rent helps offset your payments. If you choose to move on to a single family, you could keep the multi as an investment. Since many of these units need quite bit of work, homeowners can take advantage of the HUD 203(k) program to roll the cost of the repairs into the mortgage.Multiunit Sales Rise as Prices Fall
- By Michael McCann
- Posted
The Rhode Island Association of Realtors reported 164 Multiunit houses sold in January, two and a half times the number sold last January. Distressed properties accounted for 82% of the sales and drove prices down drastically. Distressed sales include foreclosures and "short sales," where a lender accepts less than what is due on a mortgage to close the deal The median sales price dropped 40 percent from $152,000 last year to $91,000, and the average sales price fell 37 percent, from $173,638 a year ago to $108,874. One bright spot was the fact that the average days on the market was down 7 % from 106 days last year to 99. There are currently 1,223 active multis on the market statewide, and 558 pending. Buying a multiunit is a great way for first time buyers to get into a home. You qualify for preferred owner occupied mortgage rates, and the rent helps offset your payments. If you choose to move on to a single family, you could keep the multi as an investment. Since many of these units need quite bit of work, homeowners can take advantage of the HUD 203(k) program to roll the cost of the repairs into the mortgage.
