Newport RI Real Estate Blog - How's the Market?

Will Real Estate be Affected by the Government Shutdown?

The Government Shutdown may affect Real Estate over the coming weeks. Perhaps not market values, but existing transactions, and buyers looking to make offers.  Being a Realtor, I’m certainly not furloughed and neither are most other private sector jobs.  But in a community like Newport RI, it may end up affecting us more directly than we’d like.

Nearly 900,000 federal employees were told not to come into work on Tuesday.  That’s nearly a third of all persons being paid directly by the US.  These people include members of the DoD, National Parks, Memorial Administration, FHA and IRS.  Since 1975 there have been 17 government shutdowns, averaging nearly a week. Ranging from 1 to 21 days each.

How it Affects Newport County:

Here in Newport…

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Time is NOT on Your Side: 5 Reasons 2013 is a Once in a Lifetime RI Real Estate Buying Opportunity

A great 2013 Buying Opportunity in Portsmouth, RI

Everyday RI homebuyers ask, “Should I buy now, or should I wait for a better deal?"  

These days my answer is decisive: “NOW is the time.”  

Coming from a real estate broker, these words can seem like a sales pitch - a canned response suitable for any market.  I am writing today to give you facts to back up my opinion.  I hope, 10 years from now, someone who bought a house after reading this blog will thank me for pushing them over the edge.  I imagine how happy they will be with a 3.5% mortgage on a low purchase price negotiated during one of the strongest buyers' markets of our lifetime.  Ten years down the road they will have significant equity in their home, and this will give them the freedom to…

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Inventory and Economics. Experiencing the Lesson First Hand.

If the Real Estate catchphrase of 2012 was “interest rates” 2013 will be “inventory”.  So far it’s been a fantastic and frustrating 2013 for us realtors here in Newport, and per the media, we’re not alone.  Inventories nationally are at 13 year lows.  As I mentioned in a blog post back in November, inventory levels were continuing to decrease, pointing towards a renewed seller’s market.  Looking at charts here in Newport County the trend doesn’t seem to be changing.  

These charts make me think back to my Economics Classes at Saint Anselm College with Professor Romps, specifically about supply, demand and the “invisible hand”.  Prof. Romps was a 6’3” 280lb angry 65 year old man.  It was impossible to fall asleep in his class even at 9am on Friday. In…

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5 Ways the Fiscal Cliff has/will/may affect Your Real Estate Decisions

The ball at Time Square wasn't the only thing that dropped last night.  The US economy took a cliff dive thanks to our elected officials on Capital Hill.  The so-called “fiscal cliff” has been looming for months.  The Senate threw out a life line passing a Bill on New Year’s Day but the House must ratify the Bill before it is presented to The President. 

So we’re not there yet, but here’s an outline from the current Bill explaining how it affects your real estate and what it means for 2013:

1. CAPITAL GAINS

-Capital Gains and dividends rose from 15% to 20% depending on your tax bracket.  Please keep in mind, the exclusion of $250,000 for singles and $500,000 for married couples is still in place, so as long as you’ve owned your home for at least…

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Newport, RI Real Estate Market; Has it Turned? I think so.

I am about to make a bold statement about the Newport, RI real estate market – a statement that’s been made nearly every year since 2006. This time, however, the evidence is strong, sustained and hard to refute, so here it goes:

 Newport's residential real estate market has finally, officially, turned a corner.

 If you don’t believe me, consider these Newport and Aquidneck Island real estate metrics from RI’s Multiple Listing Service.

Iventory

The decrease in the number of homes on the market (the dark line) from fall 2011 to fall 2012 is startling!  Approximately 200 homes were on the market last fall versus 130 this fall! Down 35%. Take a look at this chart displaying 4 years of price vs.…

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FHA Loans Demystified - 10 Useful Tips for Borrowers and Homeowners Alike

As a Rhode Island real estate agent who has recently navigated both ends of FHA backed transactions, I can personally attest to the fact that FHA loans are making a strong comeback as a useful alternative for first-time home buyers and home buyers with less than perfect credit.  My experience as of late has enlightened me to the fact that both industry peeps and consumers alike are often still in the dark about the FHA process and what it means to a sale.  So, I'm here to offer an inside scoop.

Tips for Potentail FHA Borrowers:

1.) There are three FHA loan programs:

1. FHA 203(b) fixed-rate mortgage (15- or 30-year loans)
2. FHA 251 adjustable-rate mortgage
3. FHA 2-1 buy-down loans

2.) To qualify for an FHA mortgage, borrowers must:

…

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To Rent or To Buy Newport RI Home or Condo?

To Buy or To Rent? A tool to help you decide.

Many factors enter into the decision to rent or buy a RI home including the anticipated rate of appreciation, anticipated rent increases, your tax bracket and how long you expect to stay. If you're wrestling with this common real estate decision, take a look at this Rent vs Buy calculator. It's one of the best ones out there because it rolls every possible permutation into a tidy little graph and a one sentence conclusion.

So plug in your numbers, and see what's best for you. If it turns out that buying is the way to go... well, you know where to find me!

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Unanswerable Real Estate Questions & Hopeful Thoughts about "The Bottom"

Punxsutawney Phil - Correct 40% of the Time

"Is this the bottom?" the buyer asked.

"Yes." I replied. "Yes, it is, and there will be 6 more weeks of winter too." Like Punxsutawney Phil, I make predictions at this time of year. Unlike Phil, I actually consider the indicators.  I'm pretty confident I can best his 40% success rate. (source: National Climatic Data Center)

Here are a few reasons I believe we may actually be at or near the bottom - offered with WAY more authority than Phil's suggestion of a prolonged winter.

1. In 2011 outstanding mortgage balances went down $30B every month. Steady, sustained improvement means momentum. Momentum is what pulls you out of troughs like this.

2. Job gains are accelerating. January brought 243,000 new…

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Why Listing in Winter Works

According to the National Association of Realtors, the number of Rhode Island single-family homes sold last month increased 19 percent from December 2010.  In addition, pending sales - those sales under contract but not yet closed - rose 17 percent from the year prior.   Historically speaking the winter months tend to reflect a decrease in sales overall in Rhode Island, however, these recent statistics have both caught the attention of Rhodes Island’s Realtor President, Jaime Moore and helped shift the debate about listing homes in winter.

"We're happy to see sales rising again of their own accord," said Moore. "People are buying for no other reason than they recognize affordability in the market and that's a good sign. There is no tax incentive or…

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Rhode Island Home Buyers, WHAT are You Waiting For?

It’s easy to feel negative about Rhode Island's real estate market when all you hear is bad news.  "Houses are not selling," "There are no buyers," "Banks won't lend," and "The economy is too weak for the housing market to improve."  Rhode Islanders need to look past the headlines and see the big picture. The greatest buying opportunity in our lifetimes, especially for first time home buyers and investors, is right now.  Here are a few reasons it’s an absolutely awesome time to buy:

Low Rates - Mortgage rates are at historic lows.  Two decades ago a 10% mortgage was a great deal.  In 2012, rates range from 3.75% - 4.5%.  Every .5% drop n a 30 year, $300,000 mortgage, puts $90 a month, $1,080 a year, or $32,400 over the life of the loan RIGHT IN YOUR…

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