Single Family Home Sales Rise in January

The Rhode Island Association of Realtors reported 395 sales in January, a 9 % increase from January 2009. The median price rose 14 % to $200,000, and days on the market fell 24% to 83.  Condo sales rose 28%, prices remained virtually the same, and days on the market rose 2 percent.   Multi-unit sales fell 21 percent, while price increased 21 percent and days on the market fell 36%. While January is typically the slowest month for home sales, weather has been on our side unlike other parts of the country that have been paralyzed by record snow this season.   The expanded homebuyer tax credit was intended to help stabilize prices and promote sales, but there are not a lot of buyers out there, and   not many of them are citing the credit as a reason for buying. The housing market remains vulnerable, unemployment is still high, and consumer confidence is falling. Home prices have stabilized in some markets, but there are a lot of people would like to sell but are stuck because their homes aren't even worth what they paid for it. According to Moody's Economy.com, nearly one-in-three mortgages are currently in that situation. That's a major issue for borrowers who owe more than their home is worth.  This Week's Real Estate Insight: The true stimulus effect of both the homeowner tax credit and the home sales they could create this year will be on local economies.   According to the National Association of Realtors, each home sale contributes $63,000 on average to an area's economy. That includes real estate agent commissions, attorney and title company fees, insurance, and purchases like furniture and appliances. To qualify for the $6,500 credit, buyers must have owned and lived in the same home for five consecutive years out of the past eight. They must be in contract by April 30 and close before June 30. The home's purchase price can't exceed $800,000, and it must be used as a main residence. The income limit for single taxpayers is $125,000; and $225,000 for a married couple.