Mixed Results For Johnston In Real Estate Data

According to the Rhode Island Association of Realtors, the median price of a single family home dropped two percent in the second quarter of 2011, when compared to the same period last year. Sales were down more than 20% year-over-year.

In Johnston, the local numbers were mixed — the single-family market underperformed by comparison with the state's numbers and the 2010 data, but things were better for condominiums and multifamily properties.

The number of single family home sales for the second quarter dropped 25%, while the median price dropped nearly 13% from $165,000 to $144,000. Days on the market also rose 29% from 69
to 89.

The news was better for the Johnston condo market. Sales in the second quarter were up 10% from 2010, while the median price rose nearly 27% from $92,000 to $116,500. The only negative was an 82% increase in days on the market from 91 to 166.

The number of multifamily sales held steady, while the median price increase more than 15% from $127,500 to $147,000. Days on the market also decreased nearly 28% from 72 days to 52.

The current state median price is $205,000, compared to $210,000 in the same quarter last year.

Statwide, the median price of condominiums saw a 3.7% drop to $173,000 from $179,625 in 2011. The condominium market also saw a reduction is sales, falling 14.4 percent from 2010.

The multi-family market across Rhode Island also saw a sizeable reduction in sales, falling nearly 30% in the past year. On the bright side, the median price of a multi-family home held steady at $120,000.

In a press release, the Association pointed out that the news isn't that bad when the current quarter is compared to 2009. The problem is that sales figures from 2010 are skewed because of a federal tax credit used to boost the housing market.

Stephen Antoni, President of the Rhode Island Association of Realtors, explained the effect of the tax credits on house prices.

“There’s no question that sales have fallen since the tax credit expired a year ago but we’re beginning to see them slowly creep back up again. June closed out the quarter with the highest number of monthly sales in 12 months,” Antoni said in a statement.

Another reason for the depressed market is the difficulty some borrowers have getting a mortgage, which can have a ripple effect at all price levels, Antoni added.

“Still, extremely tight lending standards remain a problem for the housing market. It’s a chain reaction," Antoni explained. "If first time home buyers can’t qualify for a home, sales of lower priced homes are delayed. And, if those homeowners can’t sell their home, they can’t move up to another price bracket."