RE/MAX: New England Housing Prices Increased in 2010

According to a report from ""RE/MAX of New England"":http://www.remax-newengland.com/, home prices in some New England states increased in 2010 despite recent data by the S&P/Case-Shiller Home Price Indices that shows broad-based declines in home values.

[IMAGE] Rhode Island, which has the highest unemployment rate in New England at 11.6 percent and the fifth highest in the nation, showed average price increases in homes across the board. Single-family homes were up 11.2 percent to $271,244 in 2010 from $243,968 in 2009. Condominium and multifamily prices also increased by 10.1 percent and 20.4 percent, respectively.

In Massachusetts, where unemployment is 8.2 percent, single-family home prices were up 7.2 percent to $376,970 in 2010 from $351,788 in 2009. Condominium

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and multifamily home prices were up as well-9.3 percent and 14 percent, respectively, over 2009.

In Connecticut's Fairfield County, single family and condominium prices also increased in 2010. Single-family home prices were up 13.8 percent from 2009 to $622,547. Condo prices rose from 4 percent over 2009 prices. Multifamily homes largely stayed the same.

However, despite mortgage interest rates hitting historic lows, overall home sales in 2010 were down from 2009 in the New England region.

Single-family home sales dropped an average of 5.0 percent. Condominium sales showed an average decrease of 2.8 percent, and multifamily homes showed the highest decrease in sales at 9.7 percent on average.

""The stalled third and fourth quarters have everything to do with lower consumer confidence due to our struggling job market,"" said Jay Hummer, EVP and regional director of RE/MAX of New England. ""We've seen a nationwide trend of companies accumulating cash and reducing debt by not hiring additional personnel.""

According to Hummer, it's an investor's market.

""There is no other industry right now in which you can expect 80 percent return on your investment,"" Hummer said. ""Consumers who are able to put 20 percent down, rent a property, and in 20 to 30 years time own it will realize that return.""