Spring is in the air and this spring is sure to be a busy time for real estate sales, but this year, coming off a slow winter.

Interest rates are still some of the lowest they have been in over 40 years, but have risen up from under 5% on a 30 year fixed rate to back over 6% for most lenders. The inventory of available homes for sale which was at an all time high over the last few years has dropped significantly but still no where as low as it was in the mid 2000s when the single family inventory was under 2,000 homes.  It's now just over 4,500 homes for sale.

The largest stumbling point right now is that the vast majority buyers still on the fence filled with aprehension over what the future may bring.  Many fear loss of income and do not make a decision, and many still believe the market has not hit bottom, which it already has.

In RI and nearby MA right now, the average asking price is down significantly from the peak back in 2005-2006 which is good news for buyers but bad news for those sellers who may have purchased back during those peak years which is why there are so many foreclosures and especially short sales going on now.

The Federal Gov. are working with major banks to modify and speed up the short sale process which up until now could sometimes take as long as a year.

There are a lot of very good homes priced under $250,000. Higher end home sales have slowed a lot and it's not uncommon to see huge price drops from motivated sellers in the higher price range, but most moderatly prices property now is stable.

Multi family homes also have decreased significantly in value, but again. You can now buy a 2 or 3 family and have the rents pay for the house. 

Condos too have come down to realistic prices and there is a good inventory available now.

In my opinion, the market has bottomed out here.  Prices have been stable and even going up in some markets over the past 6 months.  Days on the market has dropped from over 120 back in 2008 to now just over 80 days to get a property sold.

Right now and probably right through the spring and summer should be a great time to make a purchase. Look for homes that have been on the market for at least a month or 2 and find out how serious the sellers want to sell.

I look forward to hearing from you soon.

You can e-mail me at or call me on my direct line at 401-595-3886

Thank you...

Steve Gillikin

RE/MAX New Horizons