I get an email every day from the Providence Business News recapping the day's events as published in that paper, and there have been several articles of interest this week which reflect on current market conditions.  As you may know, while the US as a whole is not currently in recession (at least according to available data - updates coming next Thursday!), according to most reports, Rhode Island is.  Current unemployment at 7.5% rivals Michigan's 8.5%, and that state is deep in the throes of the auto industry's economic upheaval.

With all this bad news, though, a lot of good news has come out of the state this week.  Two local banks reported increases in earnings, which is impressive in light of the billions of dollars that national companies like Citibank, Merrill Lynch, and Washington Mutual are hemorrhaging.  BankRI has been a growing presence in the state, while Washington Trust is the largest independent bank based in Rhode Island.  If these two are doing well, things can't be all that bad! 

Sally Lapides, CEO of Residential Properties, gave an interview to PBN this week, and pointed out a very simple truth about challenging times not only in real estate, but in any business: the good get better.  Her agency's market share of $1 Million-plus properties has grown py 6 points this year.  On top of that, she cited data showing that while condo unit sales have declined in Rhode Island, as they have nearly everywere, average sale prices of condos are actually higher year over year. 

A special feature about foreclosed properties painted a grimmer picture of multi-unit properties in Providence.  Specifically, it noted that 35% of 2-, 3- and 4-family properties sold in Providence in the first 5 months of this year were foreclosed properties, compared with just 15% of single family transactions.  It also cited significant safety concerns with allowing such properties to remain abandoned.  This has had a clear effect on the sale prices of these homes, and many 3-4 unit homes are selling for $150,000 or less, less than half what they sold for at the height of the market.  The report also talked of safety concerns arising from unoccupied properties; this can be mitigated by the simplest of things:

Find new owner-occupants for the properties!

And that is where the greatest opportunity for first time homebuyers exists right now.  For the first time in nearly a decade, a first-tme homebuyer can purchase a 3-unit property and expect to live effectively RENT-FREE.  On top of that, by taking a foreclosed property and putting it back into use, the overall housing market in Providence will be improved, as the new buyer effectively be putting 3 units back to use.  What better way to become a homeowner, than to have someone else pay for it! 

Bottom line: Data appears unattractive right now, but peel back the onion a little bit, and there are some really attractive parts of this housing market right now.