Buyers Market Changing

... Buyers Market Changing....

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

Interest rates are still at some of the lowest rates they have been in over 40 years, but they are still under 5% on a 30 year fixed rate. 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 home inventory was under 2,000 homes.  In the first quarter of 2011 it was just under 3,000 homes for sale.

The largest stumbling point right now is that the vast majority of buyers still on the fence are filled with apprehension 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. This is good news for buyers but bad news for those sellers who may have purchased during those peak years, which is why there are so many foreclosures and especially short sales going on now.

The Federal Government is 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 moderately priced property now is stable.

Multi-family homes also have decreased significantly in value, but again, you can now buy a 2- or 3-family property 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 88 in the first quarter of 2010 to now just over 107 days to get a property sold (1^st quarter of 2011).

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 two and find out how seriously the sellers want to sell. I would be happy to assist you in purchasing a home or investment property.

I look forward to hearing from you soon. You can e-mail me at Steve@SteveGillikin.com or call me on my direct line: 401-595-3886.

Thank you,

Steve Gillikin

RE/MAX New Horizons