Has the Harrisonburg real estate market hit bottom?


Has the Harrisonburg real estate market hit bottom?
By Scott Rogers • March 28, 2009
I was asked that two times yesterday.....and the hypothesis of the two people asking was that the Harrisonburg real estate market has indeed hit bottom. But what do we mean "hit bottom"? When people use this language in most other real estate markets, they are referring to the end of a period of declining home values. But in Harrisonburg (and Rockingham County), we saw a 1% increase in home values between 2006, 2007 and less than 1% change between 2007, 2008. So, without an overall decline in home values, we probably wouldn't be referring to home values when we say "hitting bottom" --- if we were, we should be asking if home values are starting to increase again (after 2 years of treading water). Perhaps when people ask if the Harrisonburg housing market has "hit bottom" they are referring to the dramatic decline in sales activity. The number of home sales in our local market peaked in 2005 (1,669) and have declined ever since (-14% in '06, -13% in '07, -25% in '08). I do hope that we see that we have "hit bottom" in terms of this steady decline in market activity. More specifically, I hope that we see at least the same amount of home sales in 2009 as we saw in 2008. A broader view... In a sense, we may see market activity pick up in Harrisonburg and home values increase again when other real estate markets across the country are deemed to have hit bottom. Some analysts are predicting that we are seeing the beginning of that in March. Factors that may be contributing to an increase in sales activity and home values (in Harrisonburg and otherwise): Lots and lots of new spending via the stimulus package An $8,000 tax credit for first time buyers Very, very, very low interest rates (4.5% yesterday, with 1 point) I'll certainly keep you posted here on what we're seeing in Harrisonburg and Rockingham County in terms of home sales and home values. My March 2009 market report will be out in a few days, but until then you can pore over my February report. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
Comments (0) or Subscribe