Thursday, November 12, 2009

Rhode Island is in serious trouble. Should you buy now?

Rhode Island Real Estate is in a state of flux right now. Yes, we had a flurry going for awhile with the tax credit for first time buyers. Amazingly homes were going so fast during the last couple of months, that it almost seemed as if prices would start going up. And they did, but very minutely.

Now, according to CNN News Rhode Island again is in the top ten. It seems we are always in the top ten of something! This time, it's our financial problems. I clearly remember the reason our governor ran for this position. He ran a business and knew how to manage money!! You can go here to see the CNN article

Here is the chart for "states in fiscal peril"

So, what does this mean for the housing market here in Rhode Island? Well one could say that yes, it is still a good time to buy. We now have an extension on the tax credit and an additional incentive for people who may have wanted to list their homes and make a move, but were afraid to because of the volatile market. Now if you wanted to list you would have a better chance of a buyer actually considering your home and when you moved, you would also be able to collect a few thousand (above and beyond).  This is nothing to sneeze at and will be ending April, 2010.

However, who is to say that homes will not continue to decline? We are all hearing those rumors about the foreclosures stuck in the "pipeline". In my business, I do a lot of traveling throughout Rhode Island and I see many, many unoccupied homes. Are they future foreclosures? And why are they not on the market now?  What is holding up the banks in these instances?

Also, anyone who has had the misfortune opportunity to be on either side of a short sale, already knows how futile they can be.  Yes, a buyer can get a really good bargain. (Better than a foreclosure because the plumbing is usually still in the house). However, that buyer needs to excersise extreme patience because it can be months and months before they even hear back from the bank. Why? 

I would venture to say that if you now want to list your home, it would be a pretty good time to do so.

I am a Realtor. I write about Rhode Island. Rhode Island has some beautiful coastline and picturesque country. I live in Rhode Island and grew up here. But, we are in financial trouble.  This is a good time for someone from out of state to come in and snap up a waterfront or bayside home. Our beaches are now sporting some great home deals! These homes were once coveted and now are on the market. Rhode Island's troubles are someone elses' gains, as is the case with just about everything.

Here's hoping Rhode Island gets back on its feet and shows its stuff. We have a lot of great places here. All we need is jobs!

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