Providence, Rhode Island Realtors say new jobs and quality of life are bringing more homebuyers to the city, but sellers overpricing their homes are putting many buyers on the sidelines.

"Diversity and quality sets Providence apart from the suburbs and other cities with its wide housing spectrum," says Realtor Richard Costa. "From center chimney colonials with expansive lawns, to brownstones, high-rise condos and two or three-unit family homes designed for economical living, there is a lot to choose from. The school system is regarded as the best Rhode Island has to offer public or private. The medium pricing for housing is $250,000. Home listings continue to rise, interest rates are still low; it is a good time to be looking at Providence."

Suggests Realtor Janice Hay, "Providence has all the charm of a quaint New England town with the cultural, academic and entertainment centers that can compete with any of the larger cities. Federal Hill has renown for its restaurants; the east side for Brown, RI School of Design, JW University; and over in the west side of Providence is Rhode Island College. The elegant and historic homes are dotted throughout the city with many being restored. Providence is a great place to live, work and go to school."

"Providence has experienced a wonderful transformation over the past 10 years from a city with darkened and empty streets, to a bustling metropolis filled with light and people at all hours," explains Realtor Steve Gillikin. "There is a new down-city mall and entertainment complex, world-class theater, 5-star dining and entertainment with plenty of new hotels to serve the public. We have a new river walk and wonderful waterfront. Housing is affordable compared to Connecticut and Maryland. We have high-speed rail and a new and easy-to-get-through airport. What more can you ask for?"

Gillikin continues, "We are well into the spring market and the local real estate market is still good, however sales have been slowing down a bit. Interest rates remain below 6 percent, mostly because the economy is still not as vibrant as projected and oil prices are high. It's still opinion that the cost of housing is maxing out here in RI. Buyers are holding off from what they feel is overpaying. Asking prices are still high, but serious sellers have been reducing their asking prices and properties that were initially overpriced are finally selling at reduced prices. The inventory is up now to just over 5,000 single family, multi-family and condos for sale in RI and nearby MA., which is up about 500 units from a few months ago."

"The average time on the market is now approaching 90 days for those active listings and that doesn't include those that may have been listed before and re-listed again. The average asking price is now $540,083 which is up from $505,382 about three months ago. Not surprisingly, many of the new sellers to the spring market are still testing the waters at prices over what they are worth. The average selling price for single families year-to-date is $346,913 which is actually almost 5 percent less than it was over the last 6 months of 2004. The average selling price then was $360,815 for all single families. The average selling now is over 35 percent less than the average asking price for single family homes. Over the last 6 months of 2004, that difference had dropped to 28 percent, but that is sure a lot better than it was last spring, when at the high, it was close to 60 percent over."

He advises, "Don't be put off by some of the ridiculously high asking prices. If sellers are motivated and serious, they will eventually lower their price to realistic numbers, or with the help of a buyer's agent, you can determine the actual fair market value and make the offer. Many buyers have pulled out of the market for now because they just can't afford it or are just plain refusing to pay the high asking prices of some sellers. Buyers were having a tough time finding a decent home at a price they can afford. Some have been looking for over a year. Good single family homes priced under $200,000 are almost nonexistent in most cities and towns in the state. Even multi-family homes that just two years ago were selling for $120,000 are now on the market for more than double that price. In most cases, neither renters' nor buyers' income have remotely kept up with the asking prices and the rise in interest rates, equalling more and more buyers are driven out of the market."