By Patrick Healy

Rhode Island home prices increased more than any other state during 2001. According to the Office of Federal Housing Enterprise Oversight, the Ocean State ranks in front of places like Florida, Massachusetts, New Hampshire and California with a 10.75 increase over last year. Sharon Steele, president of the Rhode Island Association of Realtors, thinks this is great news. "Having the top rate of appreciation countrywide is great," she said. "This particular federal housing office looks at the rates state by state and I think itıs fabulous because it shows that Rhode Island is coming into its own. For so many years housing was undervalued in this state and now the demand is outstripping the supply and causing the increase to be so robust." The most recent report by the Rhode Island Association of Realtors indicated a similar trend in prices for 2002. According to the association, sales in the state increased more than 10 percent compared to the first three months of last year. Steele attributed this most recent boom in what is traditionally a poor season for home sales to the uncharacteristically mild weather this winter. "Weıve had an unusually warm winter which has hastened the annual spring burst of activity," she said. "Realtorsı business has not slowed down and real estate is continuing to appreciate as an asset, especially here in Rhode Island." Steele said there are many buyers the market hasnıt seen in a while. "There are new segments in the market, including younger people who have gone from being renters to buyers, and people that were in under-serviced segments of the market," she said. She also said many buyers have realized that in a struggling economy, housing makes a fine replacement for the stock market when investing. "People are going to second homes because of the appreciation they have realized in their first house," she said. "The truth of the matter is that from a housing standpoint, people are going back to using housing as an investment tool. This increase bodes well across the board." Among the communities to experience the most growth in sales of single-family homes were Burrillville, which charted a 72.73 percent increase, Smithfield, where home sales were up 60 percent from this time last year, and the East Side of Providence, which increased 52.94 percent. Housing prices in the state increased almost 17 percent from $141,000 to $164,800. Other areas enjoyed more drastic increases. In Jamestown the average price skyrocketed 92 percent, and 62.49 percent in Tiverton. Some areas reported decreases in average price, but a majority posted increases. The average price of an existing single-family home increased from $234,010 to $450,000 in Jamestown. There were nine homes sold last quarter. This quarterly report marks the first time the Realtors association has posted results on a quarterly basis. In December, the association announced it was discontinuing its practice of releasing monthly statistics, which it had been doing for six years. Steele said the change was a response to newspapers making statements based on inaccurate statistical deductions and assumptions, and this change in policy has helped provide a more accurate picture. "Without question the statistics are more accurate," she said.

Published 4/29/2002