As prices go down, sales go up. With a drop in median prices for both homes and condos in Rhode Island, sales of these properties seem to be looking up.

According to a report released today by The Warren Group, a real estate tracking firm, sales during the third quarter of this year significantly rose compared with the same period during 2008.

Sales of single-family homes in Rhode Island soared 19.7 percent with 2,334 sales during the third quarter compared with 1,950 sales during the same period last year. As the fourth consecutive month that single-family homes sales have increased year-over-year, September played a key role in increasing third quarter sales with a remarkable 37.3 percent increase from September 2008. Year-to-date the sales of single-family homes are also up, increasing 4.8 percent.
While sales are increasing, prices are decreasing. Down to $210,000 this quarter from $230,000 during the third quarter of 2008, the median price of single-family homes declined 8.7 percent.

While September’s median home price fell 6.8 percent, this reduction was the smallest price drop year-over-year in 2009. The median price for homes sold during the first nine months fell to $199,900 from $240,000, plummeting 16.7 percent.

Timothy M. Warren Jr., CEO of The Warren Group, said, “Reduced prices and the first-time homebuyer tax credit have helped push up home sales in Rhode Island and other parts of New England. Single-family home sales in Massachusetts and Connecticut also improved in the third quarter but the gain in Rhode Island was more significant.”

Condo sales in Rhode Island also increased during the third quarter this year up to 430 transactions from 418 last year, improving sales 2.9 percent. September proved to be a strong month for condo sales with a 22.6 percent surge in sales compared to September of 2008. Total sales from the first nine months saw a 17.5 percent decrease with 978 condos sold this year compared to 1,186 last year.

The median price of condos diminished to $184,900 during the third quarter from $205,000 in the third quarter of 2008, marking a 9.8 percent price reduction. Prices in September were 3.6 percent lower than the median price in September 2008, dropping the year-to-date median condo price a total of 16.3 percent.