Pockets of Recovery

Every time we pick up the paper or turn on the news we are bombarded constantly with updates on increased foreclsores, declining sales, layoffs and tight credit. However, on page 3 of the Business Section of the local paper I saw a sign of recovery. It went unnoticed by the author of the article and probably by many who read it. It was like that wayward Robin I noticed in the yard on a wintery day in February. One of those days when Spring seems so far away and yet, if you look hard, you can find the clues that maybe, just maybe, something good is not that far around the corner.

The average price of a home in Narragansett for the month of November 2008 was 20% higher than the average price of a home in November 2007 while total units were only down by 3. I asked myself how could this happen in the middle of a meltdown when everyone was screaming that the sky was falling and the world was ending? I thought that no one had any money or a job and that banks weren't lending and everyone was going bankrupt! Where did this come from?

There is no doubt that there are areas that have been and will continue to suffer in this real estate fueled slump. However, many of the issues that drove these problems are not present in many of our coastal resort markets. We have not been overrun with foreclsoures, inventory is relatively stable, there was a relatively small amount of speculation and development in this area over this past decade. This region also has a tremendous amount of desirability, beautiful coastal beaches, interesting historic Towns, architecture and access. Those people out there who still have money, and there must be a few still out there, are focusing their interests in areas they know will continue to outshine the rest of the pack. So, before you throw in the towel on this wintry day, remember, I spotted a Robin!