Johnston single-family home sales jumped 26% in 2016

Johnston Sun Rise ·

Following a statewide trend, Johnston single-family home sales increased in 2016 according to a report released Wednesday by the Rhode Island Association of Realtors.

Single-family home sales in the town totaled 363 for the year, an increase of 75 or 26 percent from 2015.

The median price of single-family homes in Johnston also saw an increase, climbing from $192,500 in 2015 to $207,500 for last year. Another market indicator – days on market - also reflected what some realtors are calling a “hot” market. The average days on market for a Johnston home in 2016 was 62 days, down one day from in 2015. This compares to a statewide average of 77 days in 2016.

Philip Slocum of Warwick who has been in the real estate business for 38 years isn’t troubled by what the association is characterizing as a “meteoric rise in activity.”

In an interview Wednesday he said the market isn’t on a roller coaster, but rather “climbing the mountain of recovery.” He finds comfort in the 6.6 percent rise in the median price of single-family homes statewide, observing that growth in the range of 4 to 6 percent is “sustainable” compared to the 15 to 20 percent “unsustainable” increases of the housing boom years.

“Sellers are recovering. Buyers have good opportunity,” he said.

Slocum said the Trump administration has already impacted the industry with the rollback in the FHA mortgage reduction, which he estimated could mean a $20 to $30 per month increase in monthly payments. Yet, he observed that President Trump built his “empire” on real estate and he would be surprised if Trump did anything to hurt the industry.

Maureen McGovern of Williams and Stewart called the condition a “seller’s market.”

“If I list a property that is priced right I’m going to get multiple offers,” she said. McGovern said most of her sales are below $300,000 and she is seeing a good number of first time homebuyers.

“If people grew up in Johnston they stay in Johnston. It doesn’t matter the politics; it’s because this is where I grew up,” she said. That said, McGovern is seeing an influx of Massachusetts buyers who like Johnston because of affordability and access to the Boston area from Route 295.

“Affordability and access are driving them here,” she said.

Mark McHugh, owner of Clearmark Real Estate, said that the housing inventory in Johnston and North Providence is traditionally low. He finds taxes as an issue in both communities, saying that comparatively Warwick taxes are lower.

Overall, he said, the market has been difficult on those looking to move up as while they can readily sell they aren’t finding what they want to buy.

“It’s very competitive for a buyer,” he said.

According to the report, 11,038 single-family homes were sold statewide for a 12.5 percent increase from the prior years leading the association to observe there were 1,013 more single-family home sales than the previous record reached in 2004, “leaving no doubt that 2016 was the year when Rhode Island’s housing market firmly reestablished its footing.”

In addition to the rise in activity, the median price of single-family home sales rose 6.6 percent to $239,900 according to Realtor statistics. Though this represents a 15.2 percent lag behind the highest annual median price on record, realized at the peak of the housing boom, the vast majority of homeowners have regained the home equity lost during the housing downturn.

“As our economy has improved, so too has our housing market. There was activity at all ends of the market in 2016, from first-time homes to properties that sold in the millions. Sales started off strong in the beginning of the year and remained robust throughout. Even November’s controversial election didn’t quell activity,” Brenda L. Marchwicki, president of the Rhode Island Association of Realtors, said in a statement.

The condominium market saw the strongest gain in activity, with sales rising 15.6 percent from the previous year, thanks in part to legislation enacted last year, which tempered overly stringent financing rules for condos. The median price of condo sales remained relatively stable, falling $100 from the prior year to $199,900.

Sales of multifamily homes increased 7.9 percent year-over-year, while the median sales prices of those sales rose from $168,000 in 2015 to $182,900 in 2016, an 8.9 percent increase.

“Rhode Island’s housing market has a solid footing going into 2017. We are seeing diminished inventory but listing activity will pick up going into the spring selling season. Though interest rates have risen recently, we don’t expect to see a significant hike this year so as long as we see more property listings in the next few months, we should be in good shape for the year ahead,” said Marchwicki.

Statistics reported by the Rhode Island Association of Realtors represent all Realtor-assisted sales transacted through the State-Wide Multiple Listing Service.