Projo 7 to 7 News Blog

The multi-unit housing market in Rhode Island during the last three months of 2008 looked like a department store the day after Thanksgiving: buyers poured in and snapped up bargains.

The median sales price for multi-unit houses for October, November and December was half what it had been the same three months a year earlier, but the total number of properties sold at the same time doubled, according to sales figures compiled by the Rhode Island Association of Realtors.

And the month of December slightly exceeded the entire quarter on both measures, indicating the trend grew as the year went on. For the entire year, 2008 saw prices fall by about a half and sales increase about a third, when compared to 2007.

In the fourth quarter, 542 multi-unit houses sold in 2008, up 93 percent from the 281 that sold in 2007. Meanwhile, the median sales price fell 51 percent, from $215,000 in 2007 to $105,000 in 2008.

"People are snatching up multi-family properties at bargain basement prices, which is helping to reduce inventory," said Paul Leys, president of the Realtors association. "If you're a buyer, there are tremendous deals out there, but the length of time and complexity of the sales transaction have increased tenfold."

Deals are delayed as banks process foreclosures and short sales, Leys said. A "short sale" is when a condo owner sells the property, with the approval of the lender, for less than what is due on the mortgage. Banks will approve short sales when the price is higher than what they expect to net if the property goes to auction through the foreclosure process.

Providence, as would be expected, saw the greatest activity, with 280 properties moving in the fourth quarter of 2008, just one shy of 2007's sales volume for the entire state. The 280 properties represents a 152 percent increase from 2007. Other communities where the volume more than doubled included the older industrial centers of West Warwick, up 112 percent; Central Falls, up 200 percent, and Woonsocket, up 213 percent.

The average number of days multi-unit properties stayed on the market also trended up in the fourth quarter -- by 16 percent -- and more sharply in December -- 33 percent. That forecasts even better bargains ahead, as prices tend to fall as the days on the market rises.

The Realtors association tracks sales made through its State-Wide Multiple Listing Service. The system may overlook sales by owners and by brokers other than Realtors.

 Tags  Central Falls Providence Rhode Island Association of Realtors West Warwick

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