Archive for July 2017
 |
 |
Does Harrisonburg need more Off Campus Student Housing? |
|
 Altitude at Stoneport will soon be built on Port Republic Road, with room for 425 students. The Retreat is nearing completion on Reservoir Street, with room for 700 students. JMU enrollment is growing, but only by about 350 students per year. And now, a 22 unit apartment building is proposed for the edge of the Purcell Park neighborhood -- which is and is not applicable to the matter at hand.... So, here's the deal.... 1. A local resident (developer) is intending to replace two older single-family homes with a mixed-use complex with restaurants, retail space and (22) one-bedroom apartments. STAFF recommends approving it. PLANNING COMMISSION does not. CITY COUNCIL might, or might not approve it. Read more here: Planners Discuss Decision. 2. Many neighbors of the proposed development are opposed to this potential development - because it would increase traffic, change the nature of the neighborhood, increase the population density in that area, and because some believe it will just be filled up with college students. 3. A JMU official (coordinator of off-campus life) wrote a letter on JMU letterhead to City Council and residents of the neighborhood indicating that JMU has no need for more off-campus housing. Read the entire DNR article here (JMU: Official's Letter On Zoning Issue Not Official) or an excerpt of the LETTER here.... "Additional apartment-based housing is not needed at this point in the community, and might actually be detrimental to current properties who are having difficulty reaching capacity with tenants and profiting," 4. The developer's engineer indicates that the apartments are not designed for college students. OK -- so -- let's sidestep the issues of the aforementioned letter not really being JMU's official position on the matter AND whether or not the apartments are or are not intended for or suited for college students. Instead, let's think about (talk about?) whether Harrisonburg needs more off campus student housing. So -- do we need more? Most student housing developers coming to the area would say that we do -- but they might always say that? After all, the newest and nicest student housing (almost) always leases quickly. In contrast, I would argue that all income college students (for 2018-19) could easily fit into existing on and off campus housing, even without the addition of The Retreat or Altitude. So, why do these new complexes keep showing up? Because the newest and nicest complexes always lease quickly. And because a student housing developer can make money by building such a development in this area. And because the City and/or County continues to approve these developments -- perhaps not feeling it is their place to decide whether there is a need for more housing. Side note -- should City/Council decision making bodies approve or disapprove student housing based on whether there is a need for more? I do not recall any instances when this is a question that these governing bodies discuss -- they seem to assume that the developer wouldn't be proposing it unless it were needed (which is not necessarily true -- see above) and then just move on to whether it is reasonable to develop the proposed land in the proposed manner. So, if student housing developers will always want to build more, and local decision makers might keep approving the developments independent of whether there is a need or not, I might just be wasting my time to continue to think about all of this -- but I'll continue nonetheless. I think we (citizens, tax payers, elected officials) need to realize what happens when more student housing is approved when there is not necessarily an actual need for more such housing. And the place to look to best understand this is the oldest student housing. What typically happens when new student housing is built is that the oldest (and/or least conveniently located and/or least upgraded) student housing eventually starts having higher occupancy rates, and then eventually starts being leased to folks who are not college students. All of that is well and fine and good -- except that it means that the rental income often declines, the properties aren't maintained as well, vacancy rates climb higher, rental income drops lower, property maintenance declines further, etc. So -- we end up having (or will end up having) older apartment complexes that used to be college student housing -- that are now rented to non-students -- often to low income individuals and families -- and that are often not maintained as well as when the rental income allowed for them to be better maintained. Is this (college housing potentially becoming low income housing) a bad thing? Not necessarily -- but I think that we need to realize that this is often the eventual, market driven, impact of continuing to approve new student housing developments. Are we comfortable with this long term end to our short term decisions? Is this the way that we want to grow our housing stock? Hopefully I have provided MANY more questions than answers. :) Feel free to drop me a line to discuss, or offer your opinions and perspectives. | |
 |
 |
|
|
Can this house be rented to a large group of college students? |
|
 With great regularity, potential buyers (either investors or parents of JMU students) will ask if a single family home can be purchased and rented to a group of JMU students -- often an intended group of four or more students. I let them know that it will be no problem at all -- the adjoining property owners in the quaint neighborhood probably won't mind as long as the students aren't too bothersome -- and the City doesn't mind at all if their zoning ordinances are violated, so long as it's just "nice college kids".... WAIT! NOT REALLY! READ ON!!!! It seems that some buyers are really getting that feedback of "sure, it will be fine" -- though I'm not sure if they're getting it from their Realtor, or from someone else advising them in the transaction, or if they just aren't thinking about whether their planned use of a property is allowable. The REAL answer, and the feedback that I ACTUALLY provide to my clients is.... 1. We need to check to see how this property is zoned, and whether that zoning classification allows for that number of unrelated people to live in the property. 2. We need to check to see if there are recorded restrictive covenants for this neighborhood that restrict the number of unrelated people who live in the property. A few notes.... 1. Most single family homes in the City of Harrisonburg are zoned R-1 or R-2 and do NOT allow for three or more unrelated people (students or otherwise) to live in the property. 2. If a property has been used in a non-conforming manner (for example, four students living in it) since before the zoning ordinance was put in place, without a 24 month gap in the non-confirming us, it MIGHT be possible to continue to use the property in that non-conforming manner. And, if #2 above is starting to get confusing, then we arrive at my main reason for writing today.... CALL COMMUNITY DEVELOPMENT TO UNDERSTAND ALLOWED USE OF A PROPERTY! Yes, in fact, there are very helpful City staff in the Community Development department -- who can very quickly help you understand whether a property can be legally used as you intend to use it. And it is imperative that you make this call BEFORE you buy the property, and even BEFORE you make an offer on the property! | |
|
|
|
|
Four Bedroom Home on 1.65 Acres Offers Views, Privacy in Fort Defiance |
|
  You can't necessarily buy a recently built four bedroom house on 1+ acres for around $350K in Rockingham County -- but just a few minutes further south, in Augusta County, you can! This expansive home located at 134 Bailey Road with a two attached car garage on a 1.65 acre lot offers long views in a private setting. Enjoy upscale features such as hardwood floors, maple cabinets, granite countertops and ceramic tile in the bathrooms. The main level offers an office, formal dining room, living room, kitchen with breakfast nook plus a main level guest bedroom and full bathroom. Upstairs you will find a spacious master suite, and three additional rooms plus an unfinished bonus room for storage. Don't miss the covered front porch, two-story foyer, crown moulding, chair rail, large linen closet and much more! Visit 134BaileyRoad.com to find:
| |
|
|
|
|
Is it Time for a Price Reduction? |
|
 We should have another solid 60 days of strong buying activity (contracts being signed) before things start to slow down into the Fall, and then slow down even further in the Winter. If you are intent on selling your home before the end of the year, you may want to consider a price reduction now, rather than later. If you reduce your list price on July 24, you have a good 60 days of exposure to a larger pool of buyers before contract activity slows down. If you wait, and reduce your price on October 1, you have already had a large number of buyers pass your house by. Think strategically about how your house is priced to best position it to realistically be under contract within a timeframe that best works for you. | |
|
|
|
|
Further Renderings of Altitude at Stoneport, student housing to be built on Port Republic Road |
|
      Seems like this will be an attractive structure -- and not just a big box with vinyl siding. Read more about the plans for this student housing complex here. | |
|
|
|
|
425 Bed Student Housing Complex to Open at Stoneport in Fall 2019 |
|
 view a larger image The property shown above was sold for $1.76 million to a new developer from Richmond, VA who will start site work in August for this 250,000 square foot student housing complex planned to be open for Fall 2019. Some highlights from yesterday's Daily News Record article...
| |
|
|
|
|
Contract Activity Slows, Slightly, in First Half of 2017 |
|
 As shown above, fewer buyers (696) signed contracts in the first half of 2017 as compared to the first half of 2016 when 718 buyers signed contracts to buy homes in Harrisonburg and Rockingham County. Based on all of the conversations I have had with buyers, lenders and Realtors, this is likely primarily a result of low inventory levels. The buyers are there -- ready to buy -- the sellers (and their homes) are not. Of course, there are homes listed for sale right now, but quite a few less than we'd normally see at this time of year, which leaves many buyers on the sidelines -- with the desire to buy, but without a house for sale that is a good fit for them. | |
|
|
|
|
Where Have All The Townhouses Gone? Buyers Have Bought Them Every One! |
|
 OK, admittedly, there are still SOME townhouses remaining to be purchased in Harrisonburg and Rockingham County -- but the inventory levels are declining relatively quickly. In fact, there are now just 68 townhouses (and duplexes and condos) for sale in all of Harrisonburg and Rockingham County -- which is a 59% decline from two years ago. Wow! Some part of this is that buyer demand is increasing -- and the situation also isn't helped by the very small number of new townhouses that are being built these days. Over the past 10-15 years we saw many new townhouse developments that (at the time) fell into that price range, including:
Now, however, there are significantly fewer options available when it comes to newly built townhouses in or near Harrisonburg, under $200K....
| |
|
|
|
|
Significant Decline in Number of Houses for Sale in the City of Harrisonburg |
|
 Are you having difficulty finding a home to purchase in the City of Harrisonburg? You're likely not alone! As shown above, there has been a rather significant decline in the number of homes for sale in the City of Harrisonburg over the past two years -- in fact, inventory levels have fallen 58% over the past two years!! As such, if you're buying a home in City (or if you're going to try) you must know the market, know the process, know your buying power, and closely monitor new listings! Learn more about our local real estate market via my most recent monthly market report....  You can download the full report as a PDF or read the entire report online. | |
|
|
|
|
Home Sales Steady in Harrisonburg, Rockingham County in First Half of 2017 |
|
Check out fantastic home for sale on Central Avenue! June 2017 flew by like a blur -- and although home sales were a bit slower than in May 2017 -- nearly all housing market indicators are still showing signs of a robust and active local real estate market. I just published my most recent monthly market report, and as usual, you can read on for an overview, download the full report as a PDF, read the entire report online, or tune in to my monthly video overview of our local housing market...  OK -- now, back to a high level overview of where things are with the local real estate market....  As shown above, most market indicators are looking good....
 As you can see, above, home sales dropped from 148 in May to 134 in June this year -- but last year, they increased from 133 in May to 152 in June. It is hard to say why this trajectory is reversed this year -- it may have to do with when sellers happened to be ready to sell, and when buyers happened to be ready to buy this year as compared to last year. Regardless, the net change from last year to this year is a decline of only three home sales when combining May and June data. Looking forward, I believe we'll see a further decline in closings in July, or at least that is what has happened in most recent years. Unless contract activity convinces us otherwise....  Looking at when buyers are signing contracts, it is notable that we have seen a steady stream of buyers (132 - 140 per month) over the past four months. This is a total of 542 contracts signed in the past four months -- as compared to 560 last year during the same timeframe. As we move forward, we should have at least two more months of 100+ contracts before contract activity inevitably starts to slow in September and October. And what are all of these buyers choosing from when they contract on a home?  It seems that buyers are choosing from fewer and fewer homes these days! Inventory levels have been hovering around 400 homes for sale over the past six months -- and the normal influx of new listings in the Spring selling market has not been able to keep pace with a higher level of buyers buying homes. As such, we have not seen the typical increases in inventory levels between the Winter and Spring market -- there are actually FEWER homes on the market now than there were this past February! OK - now for a shocking statistic of the month....  Did you catch that, above, in yellow? When looking at the homes that sold in the City of Harrisonburg during June 2017 -- the median "days on market" for those home sales was 8 DAYS!?! So, half of the homes that sold went under contract within 8 days of being listed for sale. Wow! I guess that's what you get with increasing buyer demand and decreasing inventory levels. There are actually quite a few astonishing tidbits in this month's report, but I'll get into those in the coming days on my blog. Until then -- feel free to download and read my full market report as a PDF, or read the entire report online. And, my reminders for buyers and sellers last month still apply.... SELLERS -- even though it is a seller's market in many price ranges right now, you must still focus on price, condition and marketing. For further reading on buying or selling in this area, check out.... | |
|
|
|
|
VDOT Plans for Harrisonburg and Surrounding Areas |
|
 We are likely to see changes to Exit 245 and 247 on Interstate 81 in the forthcoming years, as per the Commonwealth Transportatio Board's approval of VDOT's Six-Year Road Improvement Plan last month. A few notes from the June 24, 2017 Daily News Record article....
You can search the Six Year Improvement Program database here. | |
|
|
|
|
Do Sellers Typically Accept Contingent Contracts? |
|
 Based on the analysis above, it would seem that sellers are not (in almost all cases) accepting home sale contingencies. Here's the logic....
Even though I have run this analysis before, I am still surprised to find this to be the case --- I thought more contracts might have kickout clauses (and thus home sale contingencies) because plenty of buyers have to sell before buying. It would seem that most buyers are likely waiting to make offers until they have their own properties under contract (thus eliminating the need for the kickout clause) AND/OR most sellers are not accepting offers with home sale contingencies unless the buyers' houses are already under contract (thus eliminating the need for the kickout clause). If you are a buyer, I would certainly suggest the strategy outlined above (and the only one that is apparently working with sellers right now) --- get a contract on your house and THEN make an offer on the property you would like to purchase! | |
|
|
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
