RI home sales up 8 percent in February

PROVIDENCE, R.I. (WPRI) - Sales of single-family homes increased nearly 8 percent last month while prices plunged.

A survey released Tuesday by the Rhode Island Association of Realtors Inc. showed a statewide housing market still in turmoil. Although sales picked up, the median price fell by almost 26 percent to $185,000 when compared to February 2008.

Continued financial trouble dragged down prices. The survey showed about 43 percent of single-family homes sold last month were short sales or foreclosures. Such sales account for roughly half or more of transactions in a dozen Rhode Island communities.

Paul Leys, president of the realtors' association, said sales have been picking up since September. He said a recent tax break for first-time homebuyers is coaxing buyers back into the market.