Archive for June 2015
 |
 |
Another month of 100+ contracts |
|
 June 2015 will be the fourth straight month with 100+ contracts being signed by buyers in Harrisonburg and Rockingham County. In 2014, we saw 100+ contracts every month between April and September. In 2015, the 100+ months started in March. It seems unlikely that we will hit the high of 145 contracts that we saw in June 2014 this month, but we'll double check again in a few more days. | |
 |
 |
|
|
Valley Business Keynote brings Generational Experts to Harrisonburg Event |
|
 Don't miss this exciting event taking place on July 22, 2015. Find out more, and register, at ValleyBusinessKeynote.com. | |
|
|
|
|
It is HOT out there! How to keep (your house) cool this summer.... |
|
 Summer is upon us! Mid 90's earlier this week. Both my neighbor and my sister had a broken AC unit yesterday. No fun! Below are some great tips from Charles Hendricks (an architect in Harrisonburg) for keeping your house efficient and comfortable this summer. Charles' tips include information on vampire loads, smart thermostats, opening windows, energy star appliances, clothes lines, ceiling fans, reduce appliance usage, replace air filters, humidistats and indoor plants. Click here to read about 10 things to make your summer more efficient and comfortable. | |
|
|
|
|
Reimagining Days on Market |
|
 Two months ago, our "Median Days on Market" in this area was 119 days. Now, as shown above, it's only 66 days. What's happening? A drastic acceleration of our local real estate market? Actually, no. "Days on Market" is now being calculated differently by our new MLS. In the past, the "Days on Market" was counting the number of days between the list date and closing date. Now, it is a calculation of the number of days between the list date and when a property goes under contract. In many ways, this is a more helpful calculation -- it takes the variable of "how long it takes a buyer to get to closing once they are under contract" out of the equation. Now, "Days on Market" shows how long it takes for a house to go under contract. | |
|
|
|
|
Maybe the price of building lots has not plummeted? |
|
 The story illustrated above (lot prices plummeted 50% and have never recovered) is the one I've been running with over the past few years. It takes the $100K lot value as the "new norm" and then looks at all values after that point ($55K-ish for years and years) as depressingly low. Perhaps that's not the correct storyline. What if this is really the story....  Perhaps the story to be told is that lot values steadily increased between 2000 and 2005 (from $26K to $55K), then had an abnormal, unnatural, unsustainable spike (to $99K) before settling back down to the then continued norm of $55K-ish. If this, is, the more important story to be embracing, then we need not be quite as depressed. Other than a brief two year wild party (for sellers of building lots) the median sales price of these lots has been around $55K for the past decade.... | |
|
|
|
|
Maximize strength of other offer terms when making a low offer |
|
 If you are making a low offer, you can increase the appeal of your offer by strengthening your other offering terms.... DEPOSITS Make the largest deposit you are comfortable with so the seller knows you have money "on the line" and that you won't risk losing that money by attempting to walk away from the deal. CLOSING COST ASSISTANCE Sellers don't just look at the contract price --- they calculate their net proceeds based on the offer price and any credits or closing cost assistance. Only ask for assistance if you truly need it. FINANCING Provide as much detail as possible about your financing intentions, and always include a pre-approval letter. Sellers who believe you are capable of financing the purchase will be less hesitant as they consider other terms of your offer. And yes -- offer cash, a large pile of it, if you are able. :) PERSONAL PROPERTY Don't automatically ask for everything the seller intends to convey --- if you don't need them all, leave them out of the offer. Allowing the seller to keep their washer/dryer (for example) may make them more flexible in other areas. INSPECTIONS Having a professional inspect the property you are purchasing is usually a good idea; however if you only intend to do it for informational purposes, consider leaving it out of the contract negotiations and conducting it post-settlement. SETTLEMENT & POSSESSION If possible, cater your settlement date and the details of transferring possession of the property to the needs or wants of the seller. This can go a long way towards gaining seller flexibility on other contract terms. Finally, research the seller's context for selling. That information can be invaluable in negotiating a successful contract. | |
|
|
|
|
Walk Through This Home, 2336 Breckenridge Court |
|
 Take a few minutes to walk through this spacious, brick-front, Stonewall Heights townhouse in close proximity to Sentara RMH Medical Center and the JMU campus features a finished, walkout basement, a professionally landscaped courtyard, three bedrooms and a full bath on the second level, and an additional full bathroom in the basement. Enjoy hardwood floors in the living room, a large eat-in kitchen (with pantry!), an expansive deck and a vaulted ceiling in each bedroom. Don't miss the basement that offers a family room (or office), plus plenty of storage and a workshop. The courtyard was professionally landscaped by Fine Earth and features a mature tree, a paver patio, raised bed garden with stone retaining wall, and a recently painted privacy fence. Click here to walk through this home, on your computer, phone or tablet. Or, visit this home's property website. Or, view high resolution photos of this home by clicking the collage below....  | |
|
|
|
|
Update on Stone Port Development |
|
 click here for a larger version of this image or click here for a text-free version This is an unofficial update on Stone Port. I'm not in any way affiliated with the marketing, sales or leasing of the property -- but I am always curious when I see progress on this mixed use project. For more complete information, check out the Stone Port website here. That disclaimer aside, thus far Stone Port consists of....
And yes -- Bellaire at Stone Port is the structure you'll see under construction on the right side of the SouthEast Connector Road if you are driving from Port Republic Road towards the wellness center....
| |
|
|
|
|
Mortgage Interest Rates Edge Up Past 4% |
|
 Average interest rates on a 30-year fixed rate mortgage have edged up past 4%. Above you will note that interest rates have been lower than current levels (yellow area) during most of the past year, though we were seeing rates higher than 4% once we look back about seven months. | |
|
|
|
|
Walk Through This Home, 768 Woodland Drive |
|
 Take a few minutes to walk through this well maintained brick home on a cul-de-sac that features an open floor plan, hardwood floors on both levels, a bonus room off the master bedroom and is within minutes of dining, shopping, the JMU Arboretum, the JMU campus and Sentara RMH Medical Center. The yard is filled with maintenance-free blooming perennials, and the fenced backyard features mature trees. Don't miss all of the storage space, the Trex decking and the covered front porch. Recent updates include the heating/cooling system (and ductwork) in 2013, an insulated crawlspace, wood stair treads, a new dishwasher, and much more. Click here to walk through this home, on your computer, phone or tablet. Or, visit this home's property website. Or, view high resolution photos of this home by clicking the collage below....  | |
|
|
|
|
4.2 Acre, $5.5 Million Park planned for downtown Harrisonburg |
|
 A 4.2 Acre, $5.5 Million Park is planned for downtown Harrisonburg, the potential layout of which is shown above. Click any of the images above/below for a larger/clearer version. Read more about the park and its status in last week's Daily News Record article, an excerpt of which follows.... "It [the park] would include a ship-themed children's play area, a "great lawn" that would host events and performances, and a broad tree-lined promenade arching from South Liberty Street south of the Turner Pavilion to Bruce Street at Blacks Run." Connect with the group behind this effort, Plan Our Park, via Facebook.   | |
|
|
|
|
Home prices edging up a bit more quickly? |
|
 After several years of 1% - 2% increases in median price per year, could we finally be seeing a larger (faster) increase in the median sales price in the Harrisonburg and Rockingham County market? The data thus far in 2015 shows a 6% improvement in median sales price as compared to 2014. Let's see if we can stick with that 6% improvement as the year goes on! Learn more about local market trends via my most recent housing market report....  | |
|
|
|
|
June 2015 Harrisonburg Housing Market Report |
|
Learn more about this month's Featured Property: 2550 Ramblewood Road I just published my monthly report on the Harrisonburg and Rockingham County real estate market. Jump to the full online market report, or download the PDF, or read on for highlights....  Overall (year-to-date) market indicators look FANTASTIC in this latest report....
Technically, we saw a slight decline (106 to 105) in home sales when comparing May 2015 to May 2014 -- but I'll live with that given the overall positive trends outlined above.
How do we know that home values are increasing in our local real estate market? When we see sustained upward movement in long-term trends -- and it seems safe to say that we're seeing that now. After over three years of a sub-$180K median price (when looking at a rolling 12 month period) we saw that ceiling shattered in April 2015 after over six months of steady increases -- and now, this 12-month rolling median sales price has jumped up to $185K! Stay tuned, folks, but it looks like we may be starting to see some increases in sales prices, and thus home values.
Now, to provide a balanced look at things, I should point out that despite my exuberance about the above-referenced market trends, the pace of buyer activity (as measured by properties going under contract) was a bit disappointing in May 2015 as compared to May 2014. It was certainly a solid month of contracts being signed (114) but a far cry from the 135 we saw last May. It will be interesting to see what happens in June 2015 as last June there were a whopping 145 contracts signed!
As one last indicator of where we are these days -- it is worth noting that inventory levels have remained relatively stable over the past year. There were 679 homes on the market a year ago -- there are 659 on the market today. In theory, we'll see a slight increase in inventory over the next few months as we continued into and through the Summer market. OK, that's it for now. I'll hit some high points here on HarrisonburgHousingToday.com in coming days. In the meantime, you can read the full June 2015 Harrisonburg Housing Market Report online or by downloading the PDF. And as is always my encouragement -- if you will be buying or selling a home in the near future, become a student of the housing market! Learn what has been happening recently, what is happening now, and what is likely to happen next. Being informed will allow you to make better real estate decisions. | |
|
|
|
|
Finding Bank Owned Homes (for sale) in Harrisonburg |
|
 If you are looking for bank owned properties (for sale) in Harrisonburg or Rockingham County, I would recommend starting at HarrisonburgREO.com. This provides a listing of all listings in the local MLS that are identiifed as bank owned (REO) properties. | |
|
|
|
|
Walk Through 2826 Brookshire Drive |
|
 Take a few minutes to walk through this spacious, upgraded home in Barrington subdivision is located on a cul-de-sac in close proximity to Sentara RMH Medical Center. The main level features a large living room with a gas fireplace and vaulted ceiling, a custom kitchen with maple cabinetry, granite countertops, a pantry and brand new Whirlpool stainless steel appliances, a formal dining room, a master suite with a vaulted ceiling, walk-in closet and upgraded master bath with a double vanity, shower and Jacuzzi. In the walkout basement with plenty of natural light, you will enjoy a large family room / rec room, fourth bedroom, full bathroom and a home theater. Don't miss the fresh Behr paint through, the oversized two car garage, laundry room and the deck off the kitchen. Click here to walk through this home, on your computer, phone or tablet. Or, visit this home's property website. Or, view high resolution photos of this home by clicking the collage below....  | |
|
|
|
|
$81,000,000 Sale of Three Student Housing Communities |
|
 Click here for a larger version of the map above.Three college housing communities in Harrisonburg, VA sold in May 2015 for over $81,000,000 to a Chicago-based company. These complexes included:
| |
|
|
|
|
Single Family Homes Under $100K in the City of Harrisonburg |
|
 Buying a single family home in the City of Harrisonburg for less than $100K is becoming more difficult again as the market improves. While the 2015 data point (above) is an estimate based on YTD sales, it is clear that fewer and fewer detached homes are selling in Harrisonburg for less than $100K. This is a sign of market improvement, which is encouraging for homeowners, but not as exciting for would be home buyers. Here are the currently available detached homes for sale under $100K in the City of Harrisonburg: search now (2 listings as of 6/5/2015) | |
|
|
|
|
Home Warranties for Buyers and Sellers |
|
 Click here to download the full information packet on home warranties from American Home Shield -- or read on for more details.... What is a Home Warranty? It's a one-year service agreement that covers the repair or replacement of many major home system components and appliances that typically breakdown over time due to normal wear and tear. Homeowners Insurance and a Home Warranty - What's the Difference? You sensibly protect your house with homeowners insurance. While homeowners insurance covers many appliances and system components in the event of a disaster (such as a fire), having an AHS® Home Warranty will cover those items against the high costs of repair or replacement in the event a breakdown occurs. Who is AHS? The leader in home warranties, AHS was founded in 1971 to help homeowners across the country protect their hard-earned investments. Recognized with the 2013 Best in Service Award from HomeWarrantyReviews.com and the 2014 Women's Choice Award, our customer service is well-respected, with professional agents ready 24/7 to accept your service requests. AHS Home Warranty Packages There are three AHS Home Warranty packages available during the real estate transaction, making it easy for you to get exactly the coverage you need, at a price you can afford. ShieldEssentialSMAHS offers the same high level of coverage across all three packages, such as repairs and replacements for mismatched systems, undetectable pre-existing conditions, improper installations, lack of maintenance, rust and corrosion, and more. Click here to download the full information packet on home warranties from American Home Shield. | |
|
|
|
|
Now is the time for $300K+ Home Sales! |
|
 As is usually the case, we are starting to see our annual boom in $300K+ home sales. The graph above shows home sales over $300K during each month in 2014. You can see that June and July were the most active months for sales in this price range. | |
|
|
|
|
When selling your house, we can most easily affect these areas |
|
 What will it take to sell your house in today's real estate market? The age-old adage of "Location, Location, Location" still rings true – but since it is not cost effective to move your house, it may be helpful to focus on three areas that are under your control. These three areas are all essential to successfully selling your home. Price: Find Your Place In The Market. Before listing your home for sale it is essential to understand the dynamics of the current housing market – but don't stop there. Not only do you need to understand the general trends (sales pace, sales price, inventory, etc.) you also must dig deep to explore the specifics of the market that pertain to your particular home. How many houses have sold in your neighborhood in the past six months, and at what prices? What other neighborhoods will buyers be exploring? Are there 10 other houses on the market just like your house, or just two? For a thorough understanding of the local housing market, please refer to HarrisonburgHousingMarket.com. Condition: There's Old, Then There's Dilapidated. Even if your house is priced well compared to recently sold properties and currently available properties, we still need to position it to sell by optimizing its condition. Sometimes this is de-cluttering or simplifying. Sometimes a staging consultation will be helpful. Quite frequently, some minor repairs or cosmetic updates will help your property to sell. As we work to prepare your house to go on the market we will be focusing on improving the overall impression that buyers have of your house (old and dilapidated versus old but meticulously maintained) as well as eliminating potential objections that buyers might have that can easily be remedied before listing your home. Marketing: Put The Storyline On Display For Buyers. A well-priced home in excellent condition must be marketed well to attract potential buyers to come and view the property. These days, real estate marketing should start with excellent photography, and with special attention to lighting – a few photos from a smartphone aren't going to cut it. Beyond photography, it is important to focus on the storyline of the home – what are the selling points and the most attractive features? With photos and storyline in hand, we must then focus on widely exposing your home both online and in the real world. This likely means a brochure box next to your yard sign with color brochures, as well as an individual property web site, and broad syndication to a variety of online real estate web sites, and much more. Let's discuss how to best position YOUR home through the lenses of price, condition and marketing. | |
|
|
Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
Home Search
Housing Market Report
Harrisonburg Townhouses
Walk Through This Home
Investment Properties
Harrisonburg Foreclosures
Property Transfers
New Listings
