April 17, 2021

Terrades Delmoli

Experienced In Home Improvment

GoLocalProv | RI’s Real Estate Demand Explodes

3 min read

Monday, April 05, 2021


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Housing prices in Rhode Island and across the country continue to climb. But, another factor is making homeownership even more difficult — higher and higher credit score demands for mortgage approval.

Rhode Island homebuyers face an ever-increasing number of challenges — upward spiraling prices, lack of supply, and higher and higher credit scores to be approved for mortgages.

The median price of a single-family home in February in RI was $320,000, a 16.4% increase from 12 months earlier.


It is now year after year of double-digit price increases.

But this explosion in prices is different from those in the past.

According to the Wall Street Journal, “Home prices are increasing at the fastest pace in 15 years, propelled by a record-low supply of homes for sale and a flood of well-off workers looking for second homes or space for home offices. The median existing-home price topped $300,000 last summer and has stayed there ever since.”


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Lenders are requiring higher credit scores PHOTO: File

Homeownership Rate Far Below 2004

Homeownership rate continues to rebound from a modern low of 63.7 in 2016, but it is significantly lower today than it was in 2004 when it hit the high of 69.2%.

In 2020, homeownership was 65.9%.


Credit Standards Are Getting Tougher and Tougher

“Because mortgage credit is more difficult to obtain, it is a more competitive environment overall,” said Dr. Lawrence Yun, chief economist at the National Association of Realtors to the Wall Street Journal.

About 70% of mortgages issued in 2020 went to borrowers with credit scores of at least 760, up from 61% in 2019, according to the Federal Reserve Bank of New York.

The median credit score of borrowers approved for mortgages reached 786 in the fourth quarter of 2020, up from 770 during the same period in 2019.

Lower-income borrowers are being adversely impacted too. “Stricter credit requirements appeared most clearly at either end of the mortgage market. The average credit score for borrowers approved for Federal Housing Administration loans rose to 672 in the fiscal year 2020, up from 666 in 2019. FHA loans typically have lower incomes and smaller down payments,” reports WSJ.


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  • Median Sale Price of RI Home Now $265,000, Up 8.2 Percent, Says Realtors
  • 6 RI Charities Awarded Grants From RI Realtors Foundation
  • Home Sales Up in January and Prices Dip Slightly, Say RI Realtors
  • East Side Realtors Sound Alarm on Spike in Crime
  • NEW: Rhode Island Housing Market Takes Off—RI Assoc. of Realtors
  • RI Realtors Report Big Spike in 3rd Quarter
  • NEW: RI Realtors Report Spike in Housing Prices in April, Drop in Sales
  • Rhode Island Realtors Punished in Budget
  • Record Number of Single-Family Home Sales Sold in 2017 in RI, Say Realtors
  • Single-Family Home Sales Increase 10% in July, Reports RI Realtors
  • RI Realtors Say Housing Prices Increased in October
  • RI Realtors Say Housing Prices Rose in November
  • Housing Sales Decline 5.1% in June, Reports RI Realtors
  • Former Head of Providence Realtors Joins Residential Properties
  • RI Single-Family Home Inventory Up 10% in March, Says Realtors
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  • RI Realtors Say New Sales Price Record Was Set in May
  • Stay-at-Home Order Drastically Slowed RI Home Sales in May, But Prices Hit Record, Say RI Realtors
  • 5 Ways To Be More Successful Buying a House in This Hot Market – Marion of Mott & Chace
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  • Millennials Are Growing Factor in Housing Market’s Spike, Says Rutley of Mott & Chace
  • What to Ask Your Real Estate Agent: Marion of Mott & Chace LIVE


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