Latest Rhode Island Real Estate News, Listings, and Tips

You’ll find our blog to be a wealth of information, covering everything from Rhode Island market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Jan. 16, 2020

Housing Inventory Vanishing: What Is the Impact on You?

        Housing Inventory Vanishing: What Is the Impact on You? | MyKCM

 

       

           

The real estate market is expected to do very well this year as mortgage rates remain at historic lows. One challenge to the housing industry is the lack of homes available for sale. Last week, move.com released a report showing that 2020 is beginning with the lowest available housing inventory in two years. The report explains:

“Last month saw the largest year-over-year decline of housing inventory in almost three years with a dramatic 12 percent decline, pushing the number of homes for sale in the U.S. to the lowest level since January 2018.”

The report also revealed that the decline in inventory stretches across all price points, as shown in the following graph:Housing Inventory Vanishing: What Is the Impact on You? | MyKCMGeorge Ratiu, Senior Economist at realtor.com, explains how this drop in available homes for sale comes at a time when more buyers are expected to enter the market:

“The market is struggling with a large housing undersupply just as 4.8 million millennials are reaching 30-years of age in 2020, a prime age for many to purchase their first home. The significant inventory drop…is a harbinger of the continuing imbalance expected to plague this year's markets, as the number of homes for sale are poised to reach historically low levels.”

The question is: What does this mean to you?

If You’re a Buyer…

Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be ready to make a competitive offer from the start, and understand that a shortage in inventory could lead to the resurgence of bidding wars. Calculate just how far you’re willing to go to secure a home, if you truly love it.

If You’re a Seller…

Realize that, in some ways, you’re in the driver’s seat. When there is a shortage of an item at the same time there is a strong demand for that item, the seller of that item is in a good position to negotiate. Whether it is price, moving date, possible repairs, or anything else, you’ll be able to demand more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.

Bottom Line

The housing market will remain strong throughout 2020. Understand what that means to you, whether you’re buying, selling, or doing both.

       

   



Jan. 15, 2020

Homes Are More Affordable Today, Not Less Affordable

       

        Homes Are More Affordable Today, Not Less Affordable | MyKCM

 

       

           

There’s a current narrative that owning a home today is less affordable than it has been in the past. The reason some are making this claim is because house prices have substantially increased over the last several years.

It’s not, however, just the price of a home that matters.

Homes, in most cases, are purchased with a mortgage. The current mortgage rate is a major component of the affordability equation. Mortgage rates have fallen by over a full percentage point since December 2018. Another major piece of the affordability equation is a buyer’s income. The median family income has risen by approximately 3% over the last year.

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Jan. 14, 2020

2020 Luxury Real Estate Market Forecast

       

        2020 Luxury Market Forecast | MyKCM

 

       

           

By the end of last year, many homeowners found themselves with more equity than they realized, and at the same time their wages were increasing. When those two factors unite, it can spark homeowners to think about making a move to a larger or more expensive home in the luxury space. That said, now is a perfect opportunity to take a look at the forecast for the 2020 luxury market.

Three Things to Think About in the 2020 Luxury Housing Market

1. Prices

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Jan. 13, 2020

Buying a Home Early Can Significantly Increase Future Wealth

               

        Buying a Home Early Can Significantly Increase Future Wealth | MyKCM

 

       

           

According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60.

The good news is, our younger generations are strong believers in homeownership.

According to a Freddie Mac survey,

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Jan. 10, 2020

National Cut Your Energy Costs Day

                National Cut Your Energy Costs Day [INFOGRAPHIC] | MyKCM

 

       

           

Some Highlights:

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Jan. 9, 2020

There’s a Long Line of Buyers Waiting for Your House

There’s a Long Line of Buyers Waiting for Your House | MyKCM

 

       

           

If you’re following what’s happening in the housing market right now, you know that many people believe the winter months aren’t a good time to sell a home. As realtor.com Senior Economist George Ratiu recently noted,

“Sellers tend to be more reluctant to list during the colder time of year when the market typically makes a seasonal slowdown.”

However, a recent report by ShowingTime reveals how this year is different. Buyer activity is way up compared to the same time last year. The report explains,

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Jan. 8, 2020

The New Spring Real Estate Market is Here. Are You Ready?

               

        The New Spring Real Estate Market is Here. Are You Ready? | MyKCM

 

       

           

Which month do you think most people who are considering buying a home actually start their search? If you’re like most of us, you probably think the surge happens in the spring, likely in April. Not anymore. According to new research, January 2019 was only 1% behind February for the most monthly views per listing on realtor.com.

So, what does that mean? The busiest season in real estate has just begun.

The same research indicates,

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Jan. 7, 2020

Big Demand for Small Homes

       

            Big Demand for Small Homes       

        Big Demand for Small Homes | MyKCM

 

       

           

Movies, tv shows, and celebrities often have us dreaming of owning large homes, but the reality for most people is quite different.

Since 2015, the square footage of newly built houses has been shrinking, according to Yahoo Finances. This is not projected to change as we continue into the beginning of the year.

“We expect this downsizing trend to continue in 2020, driven by a confluence of economic and demographic trends.”

Why are smaller homes trending now?

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Jan. 6, 2020

3 Benefits to Buying Your Dream Home This Year

       

            3 Benefits to Buying Your Dream Home This Year       

        3 Benefits to Buying Your Dream Home This Year | MyKCM

 

       

           

Outside of a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to consider buying your dream home this year instead of waiting.

1. Buying a Home is a Great Investment

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Jan. 3, 2020

Top Renovations for Maximum ROI When Selling Your Home in Rhode Island

       

        Top Renovations for Maximum ROI [INFOGRAPHIC] | MyKCM

 

       

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