Single-Family Home Sales up 21% in May in the Ocean State

According to the latest statistics from The Rhode Island Association of Realtors, the   recovery continues to   gain momentum.  Sales of Single-family homes   rose 21%   last month and the median price rose 6% compared to May 2012. May’s median sale price was the highest since July 2011, which should come as a welcome relief to the estimated 23.4% of Rhode Island mortgage holders with underwater loans. Inventory dropped from a 71/2 month supply in April to a 6 month supply in May, and distressed sales continued to fall, representing 19 % of all transactions down from ¼ of all transactions in May 2012. Condominium sales rose 34% as prices rose 26% year over year. The median sale price in May was $215,000, up from $171,000 in year over year, and $157,500 in April. Multi-family sales remained relatively flat, increasing by one percent from last May. There were 117 sales in May and the median sale price rose 12% last month to $129,000 from $115,100 in May 2012. This Week's Real Estate Insight:  Consumer confidence is up, and demand for housing is   growing. The result of low supply and high demand is rising prices and a low average Days on Market.  As home prices rise and more   homeowners gain positive equity,   many will feel more   comfortable selling their homes and the inventory will start to increase.