A Spring in the Market

The Spring real estate market is generally the busiest of the year, and this Spring is shaping up to be the best since the market crashed 6 years ago. One of the most telling indicators is the drop in the number of houses on the market. The National Association of Realtors recently reported inventory in April hit a 6.6-month supply, down from 9.1 months a year ago, and according to Redfin, 9 leading markets have less than a three month supply!  A six-month supply is considered a healthy market. Demand is rising as well, many people have been on the sidelines for so long that they are now ready to take advantage of great prices and low interest rates, retirees and first time buyers are finally feeling secure enough to take the plunge, freeing up the move-up buyers,   and investors are snatching up foreclosures.   In Rhode Island, inventory is down, and sales have been steadily rising.   All of my offices have been showing steady increase in activity, and according to the Rode Island Association of Realtors, Rhode Island home sales rose 24% in April compared with the same time in 2011, marking the 10^th consecutive month of increases.  Median prices fell 8% due to a large number of distressed sales, which rose 35% over April 2011 and accounted for 34% of all single family sales, when you exclude the distressed sales, the median price remained virtually flat. As we work through the distressed sales, prices will start to rise. This Week’s Real Estate Insight With all of the favorable buying conditions, you might be thinking that now is finally the time to make a move to your dream home.   There are great deals to be made, but it has to make financial sense to you. If you are secure in your source of income, now is the time to make your best deal ever. As inventory declines, prices eventually will rise.