It's always good to get a different take on the data and situation in our market.  Feel free to share your own comments on the state of our market in the comment section below.



[From the Daily News Record, July 16, 2010]

Housing Market Enjoys Boomlet
But Area's Sales Surge Likely To Be Short-Lived

By Doug Manners

HARRISONBURG  - Buoyed by the expected expiration of federal tax credits, home sales in Harrisonburg and Rockingham County climbed in June to the highest monthly total in nearly three years. However, sales are likely to drop during the second half of the year, due in part to the expiration of the tax credit program.

According to a report released by Scott Rogers, associate broker at Coldwell Banker Funkhouser Realtors, 116 homes were sold last month, the most since August 2007, when 138 homes sold. It also marks a 35 percent increase over sales from June 2009.

To be eligible for the credits - up to $8,000 for first-time homebuyers and $6,500 for existing homeowners - buyers originally had until June 30 to close sales, but Congress extended the deadline to Sept. 30. Buyers still must have entered into a binding contract by April 30 to qualify.

‘Buffer' Needed

Local sales in 2010 are 16 percent higher than those from the first six months of last year, and Rogers said he believes that the area will reverse a four-year downturn in annual home sales.

"I think the 16 percent is enough of a buffer" to beat last year's numbers, Rogers said.

That buffer is key because sales are now expected to fall, with most tax-credit seekers having already made their home purchases (Congress didn't approve the extension until late June).

Furthermore, Rogers wrote in his report, "for most of the past four years, there is a steady decline in sales between June and December, so we will likewise probably see a decline month after month."

Contracts Plummet

In April, 121 properties went under contract, the most since March 2007. After the April 30 deadline expired, that number dropped to 84 in May and plummeted to 54 in June.

"This June's buyer commitment rate is notably lower than any of the past three Junes," Rogers wrote, "which is not a good indicator for July and August sales figures."

Rogers said it's too soon to say conclusively whether the tax credits provided a real boost to the housing market or simply shifted sales toward the first half of the year.

"Perhaps it's a wash other than the timing," Rogers said, "except that timing might have helped create some momentum in getting people feeling more positive and hopeful about the economy."

Values Continue To Drop

Despite the increased market activity, home values continue to decline, according to Rogers' report. The average median sales price is $186,450, down 8 percent from a year earlier. Rogers said median prices are not likely to start increasing until the year-over-year sales pace rises.

The average time a home stays on the market is holding steady at about six months.

Contact Doug Manners at 574-6293 or dmanners@dnronline.com

Receive Updates by Email

Subscribe

Recent Articles:

• Is There A Price You WOULD Pay For This House?
• 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

Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com