Buying or Selling Real Estate in Rhode Island & SE MA.
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 (1st 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
|
Copyright ©2000-2012 Homes.com, Inc. All Rights Reserved. Privacy Policy. Full Terms and Conditions. |