The local real estate market is staying strong this fall with home sales and pending contracts still above average. The Rhode Island real estate market saw an increase of single family sales of over 22% for the month of August 2011 versus 2010.
There were 160 total distressed single family sales, an increase of 33% from 2010. Short sales as a percentage of overall pending sales have been up dramatically over the past couple of years. Currently 13% of all pending sales in the state of RI are short sales. This is down from a high of 18% in November 2010.
An increase in short sales, while obviously not great for a market, is actually much better than the short sale going to foreclosure. So when short sales increase, and overall pending and sales increase, does this mean that we are inching closer to stability? It's all about inventory and we have far too much inventory to even hope for stability when looking at the entire state.
However, when you start to look closer at specific price points, neighborhoods and property types, there is reason to think that some areas will start to see a slowdown in price depreciation and perhaps, just perhaps, some price stability in the next 12 months.
It's important to know your specific market along with the regional trends in order to make the best decisions.