R.I. Realtors: Flood Insurance Concerns Contributed to Home Sales Drop in Feb.

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The Rhode Island Association of Realtors says bad winter weather and worries about increasing flood insurance premiums likely played roles as home sales and prices in the state declined in February.

The group said on Mar 27 that single-family home sales were down 5 percent compared with February of last year. The median price dipped 2 percent to $185,000 compared with February of last year and was down nearly $10,000 from January.

Association President Robert Martin said it appears the downturn will be short-lived.

The group says there was much concern about big spikes in flood insurance premiums in February, before Congress and President Barack Obama capped premium increases in response to angry homeowners facing skyrocketing premiums.

Multifamily home sales and prices increased 5 and 45 percent in February, respectively.