Median home prices in Providence

Interesting data on the median home prices for the 3rd quarter in Providence. For the city of Providence itself, there was an almost 33% increase in the number of single family units sold over the same period in 2007, but a decrease of almost 40% in the average selling price! The average selling price for the 3rd quarter of 2008 was $118,000. However, these statistics do not include all of Providence, because the East Side of Providence is reported separately. The change in single family houses on the East Side was only a 5.66% increase over 2007, but there was a 4.12% INCREASE in the average selling price, which was $461,500 in the 3rd quarter. (For all the uninitiated, there are 3separate cities, Providence, East Providence, and North Providence. However, Providence itself consists of different regions, and the East Side of Providence is treated as its own area by MLS)

For Multi-family homes, the changes in Providence are even more dramatic. There was a 69% increase in the number of units sold, and a corresponding 52% decrease in the average selling price!

This all is evidence of the foreclosure market in this area. Many marginal buyers got in over their heads and have been foreclosed on, resulting in the properties becoming REO's and eventually reaching a price point where investors or new 1st time buyers can afford them. The bottom line, don't wait around for a better deal. Now is time to buy if you are looking for a cheap house or investment property, but the expensive areas are still expensive.

(From RI Association of Realtors RI Home Sales Statistics)