Rhode Island house sales, prices drop in February

  Uncertainty surrounding the federal flood insurance program and the unusually harsh winter has finally taken its toll on home sales in Rhode Island, bringing to an end 16 months of consecutive increases that started in September of 2012.   The decline was slight and most agree we will be seeing healthy sales as we head into spring. The latest figures from The Rhode Island Association of Realtors show single-family home sales fell 5% in February over the same period last year.  421 houses sold last month, down from 442 in 2013, as the median price fell 2% to $185,000.   Slower sales, and increasing inventory has tipped the market slightly in favor of buyers, with about a 10 month supply of single family homes for sale in February, compared to six months in December.  Six months is considered a market balanced between seller and buyer demand. Multifamily building sales rose 5 % in February over 2013. 83 multifamily properties sold last month compared with 79 sales last year, while prices rose a whopping 45% from last year to $139,000. Investors often drive the multi- family sales, so these numbers bode well for the market in general as private buyers often follow investor’s leads. The condominium market saw sales fall 12% year over year with 74 units sold compared with 84 last year as the median sale price dropped 4% to $185,000.   Statewide, the number of condos for sale dropped 14% last month which could help to drive prices up, as demand increases. This week’s Real Estate Insight: While many forces helped to stall sales last month, we show signs of a healthy spring market. The lagging numbers in February come after a 12% increase in single-family sales in January with an 11%   increase in prices, placing Rhode Island  8^th among the 10 states with the largest increases in January according to the Black Knight Home Price Index.