This is a fascinating question, asked by a potential townhouse buyer who is concerned that townhouse values might be more volatile than single family homes because there have been so many townhouses built in the Harrisonburg area over the past several years.  Here is my best attempt at evaluating how townhouses in Harrisonburg hold their value compared to single family home . . .

Most of the new townhome communities in and around Harrisonburg have been built during the past six years, so I began by comparing how the median price of townhomes changed over the past six years (2003-2009) as compared to the median price of single family homes.  I found that townhomes increased in value by 51% during this time period, while single family homes only increased in value by 42%.



Next, I thought it might be interesting to see how each property type has fared in the most recent three years (2006-2009) in a tough market with very little price appreciation.  Comparing median price changes between 2006 and 2009, I found that townhomes increased in value by 1% during this time period, while single family homes LOST 8% in value.



Finally, just for good measure, I thought I'd stretch back even further and look at how the median prices of townhomes have changed over the past nine years (2000-2009) as compared to single family homes.  I found that townhomes increased in value by 83% during this time period, while single family homes only increased in value by 70%.



Having examined value trends in a 3-year, 6-year and 9-year window, I'm quite comfortable asserting that townhomes grow in value, and maintain their value better than single family homes.  Or, at least, they have in Harrisonburg and Rockingham County for the first nine years of this decade!

Median price data source: October 2009 Harrisonburg & Rockingham County Real Estate Market Report