While Airbnb is spreading around the Valley - and the globe - it faces resistance from governments and zoning laws. Adam Fletcher, director of planning and community development for the city, said Airbnb renting is "for all intents and purposes" not allowed in Harrisonburg.

"You have to have a special-use permit and they have to operate under the specific parameters of a bed-and-breakfast," he said. "Most properties don't fit that requirement."

But Fletcher admits the city can't do much about Airbnb entrepreneurs because the city does not have practical means to enforce the law.

• The housing collapse lead to new regulations on appraisers.
• Appraisal Management Companies were created as middlemen.
• Appraiser income dropped as AMC's took a cut of the appraisal fees.
• AMC's optimized for speed and cost, sometimes at the expense of competence.
  
• Optimization on price reduced overall appraisal fees.
• Lower income caused many appraisers to leave the profession.
• Further regulations increased appraisers' reporting requirements.
  

So, it's not just more than just more sales, more fully, it is....

More Sales + More Paperwork + Fewer Appraisers = Appraisal Delays

Since the 2008 downturn and subsequent housing collapse, the turmoil in the financial industry created many burdensome regulations on the only Licensed/Certified person in the financial process (prior to Loan Officers having to be Licensed/registered). 

Many Appraisers quit doing Residential work and many left the profession altogether, as the rise of the middleman (in the form of Appraisal Management Companies) took a significant cut of the Appraisers' fees and farmed out work to the lowest bidder and quickest turn time with no regard as to whether the Appraisers were qualified or competent. Many Appraisers who were either struggling to make ends meet or were too new to the profession to build a client base took whatever fees they could get from the AMCs and agreed to whatever terms the AMCs dictated. This "cheapest and quickest mentality" led to a significant reduction in the number of Appraisers overall, especially experienced competent ones.

Then FNMA and the Consumer Protection act heaped more burdensome time-consuming requirements to be included in the Appraisal reports-  extending the time necessary to complete each report.  The time an Appraiser spends at the individual property is a fraction of the hours it takes to complete the total appraisal process and report the property's opinion of value – the research, compilation, analysis, confirmation and reporting of the Subject property's, Comparable sales' and listings' data is the bulk of each report, which takes place out of the public eye.   At the same time, Appraisers are expected to perform the hours of additional work to meet the increased regulations for the same or less fee per report as received in the 1990s.  What other fees have decreased or stayed the same for 20 years when the work requirements have more than quadrupled?

So, the result of all of the above?  Fewer Appraisers left standing to complete longer and longer reports with more and more requirements for a stagnant fee dictated by the current system, which equals greater delays when the volume increases.   In addition, the requirements to become a Licensed/Certified Appraiser are such that a quick replenishment of the supply of Appraisers is impossible, in part, due to the low return on the required time investment versus the low fees currently dictated by the system put in place by Regulators after the downturn.

• Though still an estimate, enrollment likely surpassed 20K this past year.
   
  
• Enrollment will likely grow past 21K in 2018-19.
   
  
• Enrollment should hit 22K by 2021-22.
  

• stick-built homes are more structurally sound, as they are built on the piece of land where they will permanently reside --- and fit themselves, structurally, to the contour of the land as they are built
   
  
• modular homes are more structurally sound, as they are built in a controlled environment, without being exposed to precipitation, wind, etc. during the construction process
   
  
• modular homes allow for a faster construction schedule
   
  
• stick-built homes allow for greater design flexibility
  

• The "Under $200K" market reached a balance almost two years ago and is now somewhat under-supplied with only 4.1 months of supply available.
   
• The $200K - $300K market is relatively balanced, but with a slight over-supply at 6.6 months of supply available.
   
  
• The $300K - $400K market is somewhat balanced, with more of an excess of listings, with 7.8 months of supply available.
   
• The "$400K and up" market is not at all balanced, with 14.3 months of supply available -- but it has certainly improved over the past few years.
  

Read more about the latest market trends at HarrisonburgHousingMarket.com....

Read more about the latest market trends at HarrisonburgHousingMarket.com....

1. Median sales prices of duplexes, townhouses and condos are certainly flat -- they have been stuck between $151K and $152K for the past two years.
    
2. Single family homes have increased from $190K to $200K to $210K over the past two years -- I'd call that steady increases.
    
   
3. When combining these two metrics to look at all residential sales, the increases are not as impressive (as single family homes alone) but values are still increasing overall.

Read more about the latest market trends at HarrisonburgHousingMarket.com....

1. June home sales rose 7.46% to 144 home sales.
    
2. Year-to-date home sales are up 13.47% as compared to last year!
    
   
3. Prices are relatively flat, with only a 0.79% year-over-year improvement.
    
4. Homes are selling 14.52% more quickly this year as compared to last year.
    
   

OK -- BIG NEWS HERE -- June 2016 home sales were "off the charts" as they say -- the highest month of monthly home sales we have seen in a LONG TIME!  Actually, looking back further that this chart -- the last time we had more than 144 home sales was back in June 2007 -- at the peak of the market boom.
 

AND -- MORE BIG NEWS -- It happened! It really happened! Most housing market analysts consider six months of inventory (active listings) to be an indicator of a balanced market (between buyers and sellers). The "BUYERS" trend line above is illustrating how many buyers are buying in a six month period. The "SELLERS" trend line above is illustrating how many sellers are in the market (active listings) at any given time. Over the past four years we have seen a steady increase in buyers and a declining number of sellers. And finally, in June, these two trajectories have crossed! There are more buyers buying in a six month period than there are homes for sale!

Finally, what should we expect as far as sales for the next few months?  Based on recent contract activity, I am thinking we'll see another strong month of sales during July.  To put this year in perspective, we have seen an average of 140 contracts per month over the past four months -- as compared to an average of only 117 contracts per month during the same timeframe in 2015.

There is more, oh so much more, in my full real estate market report.  I have even made it very easily accessible for you to read online....

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.

Here are two handy references to prepare yourself to buy or sell....

• BuyingAHomeInHarrisonburg.com


• SellingAHomeInHarrisonburg.com

• 29 one bedroom apartments
• 24 two bedroom apartments
• 87 four bedroom apartments
  

• There will be a 2-3 story clubhouse with roof top deck, surrounded by two apartment buildings.
  
• The apartment building along Port Republic Road will be 5 stories in height.
• The apartment building along Apple Valley Road will vary between 4 to 5 stories in height.
• The community will include a clubhouse with fitness center and study facilities, a roof top deck, outdoor courtyard, storage units, bicycle storage room and study rooms with smart technology features.
• The exterior of the buildings will include faux stone, EIFS (exterior insulation finishing system), metal panels and cement panels. (no vinyl siding)

Read more about this proposed development via the recent Daily News Record article or the Planning Commission's information packet.