By JOHN HOWELL Warwick continues to lead the state in the sale of single-family home sales, albeit by a slim margin over Cranston and despite extensive news coverage in the past four months on the city's deteriorating infrastructure, condition of schools
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Warwick continues to lead the state in the sale of single-family home sales, albeit by a slim margin over Cranston and despite extensive news coverage in the past four months on the city’s deteriorating infrastructure, condition of schools and unfunded liabilities.
According to the report released last week by the Rhode Island Association of Realtors, 114 single-family homes sold during the month of August, down from 129 last August. Cranston single-family home sales were up from August 2018 for a total of 112.
The statewide news from the perspective of the association is that low inventories have made this a seller’s market and is responsible for pushing up the median price of single-family homes to $295,000, up 7.2 percent from last August.
Philip Slocum, president of Slocum Real Estate who has been selling homes in Warwick for the past 41 years, concurs that inventory is down. As of Tuesday, he said 233 Warwick homes were on the market.
“That’s way down,” he said, adding that in a “balanced market” Warwick should have 500 to 600 homes listed. When talking about prices, Slocum compared the market to a funnel with lower priced homes at the top and narrowing as prices climb.
He said the most desirable properties at this time are in the range of $300,000 to $350,000. He did not see any one particular Warwick neighborhood as being in high demand. Because “they don’t make any more of it,” he said waterfront properties continue to demand a premium, although the cost of flood insurance can present “challenges.”
Low mortgage interest rates and high employment are fueling the market, too, he said.
Yet he does not see the lack of inventory pushing unreasonably high prices. In fact, the median price of Warwick homes fell from $240,000 to $238,450 for August year over year.
Might that be an indicator of an impact of negative Warwick news including student demands for the restoration of sports and other programs cut from the school budget in the spring (most of the programs were restored); a sewer line break on Sandy Lane that highlighted the deteriorating condition of the system; close to a maximum allowable tax increase and multiple stories over the increasing cost of pensions and retiree health benefits?
“News is short-lived,” said Slocum. He said he is not hearing any major concerns.
A Warwick cheerleader, Slocum is not surprised the city exceeds other municipalities in single-family home sales.
“It has so much to offer,” he said, citing beaches, parks, retail shopping areas, great food and its location in the center of the state and access to major highways. “By and large people want to live here. It’s a good place to live.”
A possible indicator of the market is the number of vacant houses due to a myriad of issues from foreclosures and tax saled to estate complications. Some of these properties have gone unoccupied for years to the annoyance of neighbors who complain to minimum housing and see nothing happening. According to the city, the number of vacant homes have dropped since the recession years from about 500 to about 300.
Slocum is not surprised.
“There’s a plethora of flippers [people looking to get a good deal on a house, make improvements and sell it at a profit] looking for properties in distress,” said Slocum. He also pointed out that gaining a clear title to many of these properties can be a long and arduous process.
Inventory is the key word being pushed by the real estate association. It reports inventory in all three sectors remains markedly low – hovering near a four-month supply for single-family homes and condominiums and a 3.5-month supply for multifamily properties. A six-month supply is considered a healthy balance between supply and demand by most industry experts.
Sales activity saw a jump in the condominium market last month, rising 13.7 percent from 12 months earlier but sales slowed in the single-family home and condo markets. Given the scarcity of single-family starter homes, condominiums have become an attractive option for first-time buyers.
Also, the association notes in a release, in August, the U.S. Department of Housing and Urban Development released updated guidance on FHA-insured condominium financing. The new rules, which are set to take effect in mid-October, should make it easier for more buyers to obtain low down-payment mortgages for condo purchases by eliminating financing barriers to that sector of the market.
“Overall, as our economy moves along, so too does our housing market. The only thing hindering us right now is the lack of properties available on the market. Regardless of what happens to interest rates over the next year, we can’t sell what we don’t have available for sale.
“If there’s anyone thinking about selling, now’s the time. The conditions to maximize your investment don’t get much better than this,” said Dean deTonnancourt, 2019 president of the Rhode Island Association of Realtors in a statement.
8 comments on this item Please log in to comment by clicking here
Apollo
I read recently by Cote I believe, one of the squad members that people were moving out not in. For sale signs every where. Well, well, the stats say other wise. You see numbers are just numbers it's how they are manipulated and interpreted.
Thursday, September 26, 2019 Report this
Justanidiot
da problem is dat THEY are moving in and WE are moving out.
Friday, September 27, 2019 Report this
Former User
In two places in this article, John Howell mentions "news coverage" and the "negative Warwick news" and tries to suggest that it's had some effect on home sales.
First, a lot of that news was on this website, which he runs.
Second, Philip Slocum came right out and debunked Howell's theory.
Which means that, despite his best efforts to cast the city in a negative light, John Howell has had little to no effect on the pace of home sales in Warwick.
Friday, September 27, 2019 Report this
davebarry109
Apollo, you bash Cote so much he obviously has it right. You're like Trump calling 'fake news' to verified claims. Knowing many folks will believe it. But the city is in bad shape and needs structural changes. You must be a retired FF. If you keep up the denials, you won't have anything.
Friday, September 27, 2019 Report this
Apollo
Dave Barry actually I'm tired of the lies from the Warwick squad and starting to speak up about it now. Fake news is real and I'm thankful for President Trump exposing the news outlets for spewing the untrue stories. Yes I bash Cote and his coherts I call the squad. They are so in-line with what the democrat politicians have been doing since Trump has been in office. Very similar. City workers are paying more into the pensions and they are very well funded. The high stock market thanks to our president has only helped in those regards to realize the higher returns as well. All is good the sky isn't falling.
Friday, September 27, 2019 Report this
FASTFREDWARD4
LOOKS LIKE 3RD WORLD IN WARWICK .WITH LOTS OF RUG RATS LIKE TO SEE WHAT THE NUMBERS ARE GOING TO COME IN UP 10% FOR SURE.
Monday, September 30, 2019 Report this
patientman
According to realtor.com 448 single family homes on the market in Warwick. That seems like a lot of houses. Only 51 above $500,000 & 14 above $,100,000 for sale.
Tuesday, October 1, 2019 Report this
patientman
Idiot,
Hall Of Fame post
Tuesday, October 1, 2019 Report this