As expected,  we continue to show brisk sales as people are taking advantage of great mortgage rates and the first time buyer’s tax credit. The Rhode Island Association of Realtors reported last Wednesday that sales of single-family homes rose 29 % in October in year-over-year comparisons, but as we work through the distressed listings, the median sales price continued to decline

Here are the highlights of the RIAR report:

• 787 SF sold, compared with 621 last year.
• The median sales price was $200,000, down from $215,000 during October 2008
• 22% of sales were distressed properties
• The median price of sales without short sale or foreclosure was $230,000

The multifamily home market fell slightly in year-over-year comparisons:

• 187 sales in October 2009, down from 193 a year earlier, a 3.1%drop.
• The median price fell from $116,000 to $110,000.
• 18.6 % of those were distressed sales.

Condos had a 35% increase in sales in October compared with the last year:

• 111 sold compared with 82 a year earlier.
• The median price fell 29 % to $161,000 from $227,500.
• 21 % of the sales were distressed.

With Mortgage rates at historic lows, and lower prices, home affordability conditions are the best on record since 1970. The expanded tax credit should drive the spring market; helping the move-up buyer as well as the first-time buyer. Since potential buyers have until April 30 to have a contract in place, we should continue to see robust sales through  Spring.  

This Week’s Real Estate Insight:

By the time the credit expires, we should have worked though enough inventory that prices stabilize or even increase slightly, then the market could stablize because buyers won’t be paralyzed by worry about further decline in home values.

  Last week, Rich and Steve were in studio with Leslie Kellogg, an Energy Smart Real Estate Specialist, and  Chris Aguir from RISE Engineering. RISE has been helping Rhode Islanders reduce energy usage for three decades and Leslie and Chris gave some really good tips for people to save money on their energy bills, add value to their house, and to use these improvements to distinguish those properties  when they are on the market.

National Grid offers a program where they will send out a Rise engineer to give an energy audit. Homeowners are often reluctant to receive an energy audit because they think it will be some long, expensive process. This is not true, an energy audit involves a whole house approach in assessing the performance of a building with regard to energy consumption and efficiency   For info and to schedule appointments for an in home assessment call: 888-633-7947, or visit Thinksmartthinkgreen.com.  

 There are also tax credits for making energy efficient improvements to your home, and once you have made these improvements, the EPA and DOE provide a variety of marketing materials to help educate homeowners about Home Performance with ENERGY STAR.

This Week’s Real Estate Insight:

This is a great time to improve the energy efficiency of your home and not only save on utility bills but also increase the value of your home. According to The National Association of Home Builders, 64% of respondents prefer a “green built home.”  And according to NAR’s most recent homebuyers survey 65% of those responding indicated that an energy-efficient home was “very important”.