Well, I can’t believe it’s May already! It seems like only yesterday that it was New Year’s. The first quarter sales statistics came out this week and they offered little in the way of surprises and do not paint the doom and gloom scenario that the wave of “Sub-Prime Tsunami” Propagandists would lead you to believe.

Here in Southern New England, despite Rhode Island’s large number of default loans, we appear to be entering a “Goldilocks” era here. Not too hot, not too cold, just right for buyers and sellers. As long as they are informed enough to be realistic about the market and their expectations. Home prices on average are flat and except for some areas of the country, the falling-price zones are the ones that enjoyed the greatest gains.

If you bought at the height, you might not be too happy if you are forced to sell right now but if you have enjoyed even a fraction of the last ten years of 100% plus appreciation, you are still way ahead of the game.

Here are the highlights from the Warren Report: The report notes that sales had risen in the first two months of the year before falling in March. March’s decline could just be a blip, we’ll have to wait and see what happens in coming months to determine that:

1: Sales of Single-Family Homes fell 17.7 percent in March, dragging down overall sales for the quarter by 3 percent compared with the first quarter of 2006.

2: The median sales price fell 2.7 percent to $255,000 from $262,000 during the same period last year.

3: Condo sales fell 4.3 percent for the quarter, although sales rose 3 percent in March. The median sales price fell to $220,500 compared with $235,000 in 2006.

4: In Providence and Kent Counties, first-quarter sales fell by 9 percent and 9.6 percent, Washington County reported first-quarter sales surged 20.5 percent and Newport County recorded an 8.3 percent increase.

5: On Providence’s East Side, the median house price during the first quarter fell 26.5 percent to $422,500 from a year earlier. Sales on the East Side remained flat.

6: Excluding the East Side, prices in Providence rose 1.2 percent during the first quarter compared with a year earlier but sales were off 17 percent. In all, of the 38 communities which reported Single-Family house sales during the first quarter, all but 8 of them reported price declines.

This Week’s Real Estate Insight:

People are always asking me “How do you time the market”? I wish I knew, I do know that if you find the right house for you, at the right price, it’s the right time to buy for you.

Since green is the new black, lately I have been helping to promote some of our more Earth Friendly partners in Rhode Island housing. Considering that the United States has only 6% of the world’s population but consumes 25% of the world’s resources, we really have to start doing everything we can to utilize renewable energy wherever we are able to.
 
This week Rich and Cherie talked with Bob Chew, founder of SolarWrights, Bob is a nationally recognized expert in solar energy and green building and has been a tireless promoter of renewable energy. His company has been responsible for over 80% of all photovoltaic systems that have been funded by the Rhode Island Renewable Energy Fund. If you are thinking about building a new home, you might want to give Bob a call to spend a few hours with your architect or designer to see if solar energy systems can be integrated into your home.

With over 29 years of experience in the design and building of solar powered systems, Bob and his team can see you through the process. After the initial set up cost, the savings start to add up in addition to reduced utility bills, there are tax credits for solar hot water systems, solar space heating systems and photovoltaic systems available to Rhode Island homeowners.

Here are some of the incentives available in Rhode Island:

1: The Rhode Island Residential Tax Credit for solar hot water systems is $1,700.00
2: The Federal Tax Credit for solar hot water systems is 30% with a maximum cap of $2,000 for residential projects and no cap for commercial projects.
3: The Rhode Island Residential Tax Credit for solar space heating systems is $3,750.00
4: The Federal Tax Credit for solar space heating systems is 30% with a maximum cap of $2,000 for residential projects and no cap for commercial projects.
5: The Rhode Island Residential Tax Credit for photovoltaic systems is $3,750.00
6: The Federal Tax Credit for photovoltaic systems is 30% with a maximum cap of $2,000 for residential projects and no cap for commercial projects.
7: There is currently a $3,750.00 Rhode Island Residential Tax Credit for wind turbines. 

This Week’s Real Estate Insight:

If you are looking to save money on your energy bills, alternative energy sources are a great way to go, but the cheapest energy is the energy you don’t use, we all must learn how to be more conservative in consumption.