Pawtucket Credit Union offers 4.875% on 30-Year Fixed

In the last 30 days we have seen a dramatic change in interest rates for mortgages. After weeks of consistent rate reductions, we would like to notify the public that as of today (12-17-2008), Pawtucket Credit Union, a leading mortgage lender in RI, has lowered their 30-Year fixed mortgage ("A conforming product") to 4.875%. I believe the maximum loan amount for this product would be $417,000. For further details please contact Pawtucket Credit Union directly.

With rates this low and prices in the market as low as they are, this is an absolute great time to buy Real Estate! In fact, this is one of the reasons why we are seeing so many clients build new homes during this down market!

Local Sales Statistics released 9-29-08

Source: RI Association of Realtors

Here are some bullet points taken from the data released on 9-29-08:
*Most importantly, please keep in mind that these are statewide statistics.

SINGLE-FAMILY HOMES
Single family home sales were down 21.89% from 763 in August 2007, to 596 in August 2008.
Median price of single family homes also fell, to $235,000 from $279,900 for same period
27% of single family home sales were foreclosures or short sales

Inventory decreased by 3.98% in August from 6952 in August 2007 to 6675 this year.
August pending sales increased 22.36% year to year. "Both show a healthy increase in buyer demand".

MULTI-FAMILY HOMES
Multi-family prices were down nearly 45.45% from $239,500 in August 2007 to $128,250 in August of this year. "The multi-family market has been the hardest hit segment of the market with 101 distressed sales, foreclosures or short sales, compared to only 31 traditional sales in August. Total sales of multi-family properties were up 37.5% year to year from 96 in August 2007 to 132 in August 2008.

CONDOMINIUMS
The Median condo price fell only 4.65% to $232,500 from $243,850. The number of condo sales fell 26.7% from 176 in 2007 to 129 in August of this year. Only 14 condo sales involved foreclosures or short sales compared with 115 traditional condo sales.

In my opinion...

SINGLE-FAMILY HOMES

A 21% drop in single home sales shows the challenges of this market. The increase in Pendings (Homes under agreement, but not sold yet) is a good sign, but that number also appears to be increasing because financing can be difficult for many buyers. My team has experienced this exact issue this month. As buyers have difficulty getting financing completed, usually buyers and sellers will extend the closing date to attempt to find a new lender to finance the transaction. This partially explains an increase in "pending sales", but a decrease in actual executed sales.

The slight decrease in inventory is a good sign, but honestly only the beginning of a long road. For the market to improve we need:

• The overall inventory to decrease and
• The foreclosure, short-sale and distressed sales to decrease dramatically, as they apply pressure to the entire market, especially non-distressed sale properties

The good news is that this is a great time for first-time home buyers, especially buyers who qualify for financing through the RI Housing program. Buyers are now able to purchase "good homes" for much less, making the American dream a reality. We are currently working with many buyers looking for homes priced between $120,000 - $200,000 and finding great homes!

MULTI-FAMILY HOMES

Keep in mind these statistics are state-wide statistics. The technical reason why multi-family homes have lost 45% of value is because:

• Most of the sales that are occuring right now for multi's are occuring in larger city markets (Providence, Cranston, Woonsocket and others) where most sales are foreclosures and short sales.
• They are distressed sales being purchased, probably by investors at "investment-grade" prices

If you own a multi-family in a fairly stable area, your value likely did NOT decrease 45%! This is why working with knowledgable and expierenced agent is important; We understand how to interprett statistics and the impact to your home.

CONDOMINIUMS

No dramatic changes.

Agents add value to showings

A Listing Agent Can Have a Substantial Impact When Showing Real Estate...

During a recent showing in August of 2008, Jennifer Mello on our team showed a listing we had for sale in Bristol. The next day the buyer's agent left our team this message showing the value of a great Agent and how an Realtor can be very valuable at a showing.

In today's market, its important to know your agent is a true professional, adding value to every showing for your property, pointing out the best aspects of your home and being present at every showing.

Gabcast! Real Estate Talk with The Mello Group at REMAX in Rhode Island #1 - Agents add value to showings

A listing agent can have a substantial impact when showing Real Estate...

House sales increase, but values continue drop

(This entry is based on A Providence Journal Article dated August 26, 2008: Business Section by Alan Zibel). This entry is a summarized version of Alan's article.

[Please keep in mind this is a National and Regional review of activity, with very limited data and analysis for our specific region (Greater Providence Area)]

Some analysts believe this could be the beginning signs of a turnaround...

Sales of existing homes rose last month, exceeding analyst expectations, "however the number of unsold properties hit an all-time high". Still, sales were about 13% lower than a year ago and values are down dramatically.

"The number of unsold single-family homes and condominiums rose to 4.67 million, the highest number since 1968, when tracking began by industry insiders".

"Until the inventory level is reduced to more normal levels, analysts say, the housing slump is likely to persist. The inventory level is being driven higher by a massive wave of mortgage foreclsures".

"Between 33%-40% of sales activity is coming from foreclosures or other distressed properties, estimated Lawrence Yun, chief economist".

Locally, "Foreclosures are laving their mark in Providence, nearly one of five sales in the area were distressed sales, said a local professional. The discounted properties are weighing down the market, where the median price fell by 13% last month to $234,900. Sales also slipped by 9% in July".

In my opionion:

• Some markets (througout the US) will recover faster than the rest of the country and will begin to show improved statistics nationally.
• A change in national sales figures does not necessarily translate into a better local market
• Locally, I do believe our market is being held down by foreclosures and distressed sales. Distressed sales push values lower and effect the time on the market and values of all other sales. We will need to see a dramatic reduction in foreclosures and distressed sales before we begin to even notice a leveling of the market locally.
• Keep in mind foreclosures and distressed sales have a bigger impact in larger markets, espcially cities such as Providence, Cranston, Pawtucket and North Providence. Smaller markets, such as Bristol, Warren, Portsmouth, Glocester, Smithfield and others are mostly slower due to the general economic state of our nation.
• An increase in national sales is a very positive sign; this will likely translate into a more stable/normal inventory (On a national scale) and more stable values, but locally sales are still down and in some cases decreasing.

RE/MAX #1 in Rhode Island

In today's Real Estate market, its important to know that your real estate agent works for the most successful Real Estate sales organization in Rhode Island. Are you aware that RE/MAX in Rhode Island:

• Sells more Real Estate than any other sales organization in the state
• We had more transactions in 2007 than our next three competitors combined (Coldwell Banker, Century 21 & Residential Properties)
• Is #1 in Sales in 31 of the 39 cities/towns in RI

Also, did you know, RE/MAX:

• Is the first Sales Organization that the public thinks of when searching for Real Estate Online? (Source: Hitwise.com, "List of most popular industry search terms for December 2007")
• Is the most visited Real Estate Sales website online (#5 overall nationally for all Real Estate websites; Source: Hitwise.com, "20 Most popular Real Estate websites for 2007")
• Spends the most in national television advertising for Real Estate. RE/MAX has 53% of all Real Estate advertising nationally (Source: Nielsen Monitor Plus: Adults 25-54: 1Q 2008)
• Advertises consistently on national radio networks such as Westwood One
• Has over 7,000 offices in over 65 countries, with an international relocation network

So what does all this mean? When hiring a Realtor to help you sell Real Estate, isn't it important to know that your hiring the most powerful and successful brand in the industry?

After choosing the the #1 Brand, next you will need to decide on a Realtor. What makes 'The Mello Group" so successful is:

• We are a team of Realtors, not just one agent
• We are engaged in Real Estate full time, all-the-time
• We operate throughout Rhode Island and South-Eastern Massachusetts
• We have developed an actual "Marketing Plan" that defines exactly how your home will be marketed. Our marketing is based on actual, recent studies that show the behavior of buyers. By marketing in very specific and calculated venues, we are able to capture buyers at all stages of the search process
• We offer a superior level of service, unheard of in the industry (We provide detailed reports of showings, phone calls, Internet traffic, virtual tour traffic and feedback for all contacts made concerning your home)
• We answer our phone... (We are serious about answering our calls. We are not "leave-a-message and we will call you back when its convenient agents")

Considering the sale of Real Estate in Rhode Island or South Eastern Massachusetts? Call us and find out why we are different than every other Realtor you have met in the past... Call

Gary Mello: 401-225-6898

Jennifer Mello: 401-339-1506

Michael Thomas: 508-542-0856