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!

April 15, 2021

Why This Is a Great Year to Sell Your Vacation Home in Rhode Island

 

Why This Is a Great Year to Sell Your Vacation Home

As pandemic fears wane and travel resumes, many of us are beginning to plan for those long-awaited vacations we missed out on over the past year. Some households are focusing their efforts on buying a vacation home rather than staying in a hotel, too. The National Association of Home Builders (NAHB) reports :

 

Second homes (i.e., homes sold to buyers who are not going to occupy the home year-round, but use it as a vacation home, investment property, etc.) account for 15 percent of new single-family home sales .”

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April 13, 2021

Some Buyers Prefer Smaller Homes

 

Some Buyers Prefer Smaller Homes

Over the past year, we’ve had plenty of opportunities to reflect on what we consider most important in our lives. The place we call home is one of the biggest things many of us are reevaluating. George Ratiu, Senior Economist at realtor.com, shares:

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April 12, 2021

4 Major Reasons Households in Forbearance Won’t Lose Their Homes to Foreclosure

 

4 Major Reasons Households in Forbearance Won’t Lose Their Homes to Foreclosure

There has been a lot of discussion as to what will happen once the 2.3 million households currently in forbearance no longer have the protection of the program. Some assume there could potentially be millions of foreclosures ready to hit the market. However, there are four reasons that won’t happen.

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April 8, 2021

Homeownership Is Full of Financial Benefits

 

Homeownership is Full of Financial Benefits for Homeowners in Rhode Island

Homeownership Is Full of Financial Benefits

A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:

  • 88% - a better chance of saving for retirement
  • 87% - the best investment plan
  • 85% - the chance to be better off financially
  • 85% - the chance to build up wealth

Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.

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Does homeownership actually give you a better chance to build wealth?

No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset.

 

Last fall, the Federal Reserve released the Survey of Consumer Finances , a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

 

The difference in net worth between homeowners and renters has continued to grow. Here’s a graph showing the results of the last four Fed surveys:

The Gap in Networth is widening between homeowners and renters

The above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

 

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:

Net Worth is Far Greater for Homeowners in Every Income Category First American

Others may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

 

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

 

Homeowners 65 and older have 47.6 times greater net worth than renters.

Bottom Line

The idea of homeownership as a direct way to build your net worth has met the test of time. Let’s connect if you’re ready to take steps toward becoming a homeowner.

 

The Perrino Team Specializes in helping home buyers in Rhode Island find and buy homes they love. From first time buyers just thinking about where to begin, to seasoned investors buying and selling several houses a year, and all the homeowners ready to move up or downsize in between, The Perrino Team has the experience and expertise to help you find and buy a home you’ll love.

Call Us at 401-206-8907 or Email theperrinoteam@perrinoproperties.com

We’ll listen, it’s always confidential, and we’ll work with you!

Posted in Buyer Tips
April 5, 2021

Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year

Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year | MyKCM

 

Your Tax Refund and Stimulus Savings May Help You Achieve Homeownership This Year

If you’re planning to buy a home this year, saving for a down payment is one of the most important steps in the process. One of the best ways to jumpstart your savings is by starting with the help of your tax refund.

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March 30, 2021

How a Change in Mortgage Rate Impacts Your Homebuying Budget

How a Change in Mortgage Rate Impacts Your Homebuying Budget | MyKCM

How a Change in Mortgage Rate Impacts Your Homebuying Budget

Mortgage rates are on the rise this year, but they’re still incredibly low compared to the historic average. However, anytime there’s a change in the mortgage rate, it affects what you can afford to borrow when you’re buying a home. As Sam Khater, Chief Economist at Freddie Mac, shares:

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Posted in Buyer Tips
March 26, 2021

2021 Real Estate Myth Buster [INFOGRAPHIC]

2021 Real Estate Myth Buster [INFOGRAPHIC] | MyKCM

 

2021 Real Estate Myth Buster [INFOGRAPHIC]

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Some Highlights

  • There are a lot of misconceptions about buying or selling a home today, making it challenging to know exactly how to navigate the current real estate landscape.

  • Here’s a little clarity when it comes to 5 common myths about the 2021 housing market.

  • Let’s connect to discuss your needs and so you can decipher facts from fiction in our local market.

Call Us at 401-206-8907 or Email theperrinoteam@perrinoproperties.com

We’ll listen, it’s always confidential, and we’ll work with you!

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March 22, 2021

What Credit Score Do You Need for a Mortgage in Rhode Island?

What Credit Score Do You Need for a Mortgage? | MyKCM

 

What Credit Score Do You Need for a

Mortgage in Rhode Island?

According to data from the most recent Origination Insight Report by Ellie Mae, the average FICO® score on closed loans reached 753 in February. As lending standards have tightened recently, many are concerned over whether or not their credit score is strong enough to qualify for a mortgage. While stricter lending standards could be a challenge for some, many buyers may be surprised by the options that are still available for borrowers with lower credit scores.

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Posted in Buyer Tips
March 9, 2021

Is It a Good Time to Sell My House in Rhode Island?

Is It a Good Time to Sell My House? | MyKCM

 

Is It a Good Time to Sell My House in Rhode Island?

Last year, many homeowners thought twice about selling their houses due to the onset of the health crisis. This year, however, homeowners are beginning to regain their confidence when it comes to selling safely. The latest Home Purchase Sentiment Index (HPSI) by Fannie Mae shows that 57% of consumers believe now is a good time to sell.

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March 8, 2021

5 Reasons to Sell Your House in Rhode Island This Spring

5 Reasons to Sell Your House This Spring | MyKCM

 

5 Reasons to Sell Your House in Rhode Island This Spring

When selling a house, most homeowners hope for a quick and profitable transaction that puts them in a position to make a great move. If you’re waiting for the best time to win as a seller, the market is calling your name this spring. Here are five reasons why this is the perfect time to sell your house if you’re ready.

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Posted in Seller Tips