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Price Per Acre of Land Sold in Rockingham County |
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 As shown above, the price per acre of 5 - 10 acre tracts has increased over the past several years to a median of $13,264 per acre. We are consistently seeing between 10 and 20 (between 11 and 17) of these parcels selling each year.  The median price per acre of 10 - 20 acre tracts jumped up to $13,184 in 2015, but settled back down in 2016 to $7,669 and has now risen again in 2017 to $9,796. The small-ish number of sales per year in this price range leads to more variability in the median sales price per acre depending on which particular tracts sell in any given year.  We saw almost 20 sales over 20 acres this year -- but the median price per acre fell from $6,949 (last year) to $5,496. | |
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Bidding Wars over City Townhouses |
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 The last few townhouses listed for sale in the City of Harrisonburg (under $175K, built since 2000) have gone under contract QUICKLY -- with multiple offers. So far, we have not seen a wild uptick in median prices of townhouses based on this excessive demand (and limited supply) but we could start to see that at some point.... Median Townhouse/Condo Sales Price in Harrisonburg and Rockingham County:
If you are fortunate enough to own one of these -- and be in the market to sell it -- you should not have difficulty in securing a buyer. If you are unfortunate enough to want to buy one of these -- bid early, bid aggressively, and if you keep missing out on properties, be prepared to bid often. | |
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Fewer and Fewer Foreclosures |
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 Well, here's a good indicator that our local housing market continues to become healthier over time -- as shown above, the number of foreclosure sales per year has continued to decline over the past several years. To put these into an even larger context:
All in all, it is a good sign for our local housing market when the number of foreclosures per year declines. It means more homeowners are able to stay in their homes, and make their mortgage payments, which is a general sign of a stronger local economy. | |
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Zero City Townhomes For Sale, Without Tenants, Built in the Past 10 Years |
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 Well -- I was going to remind you of this great web site or exploring our local townhouse communities where you might consider purchasing a home or investment property.... HarrisonburgTownhouses.com And then, in the process of poking around to see what types of townhouses are currently on the market, I discovered that.... There are ZERO (zip, zilch, nada) townhouses currently for sale in the City of Harrisonburg, that exist (not "to be built") that have been built in the past 10 years, that do not have a tenant living in them. That long sentence might make it seem like I am looking for a very narrow category or properties -- but I don't think I am. If a buyer wanted to buy a City townhome built in the past 10 years, and close on their purchase in the next two months, they would need the townhouse to already exist (not something that requires another 4 - 5 months of construction) and they would need the townhouse to not be tenant occupied. There are some townhouses on the market at The Townes at Bluestone that are under construction and could be available in a few months. There are some townhouses on the market in Beacon Hill (and on Norwood Street) that currently have tenants in them. But as far as recently (past 10 years) built townhouses ready for an owner occupant to move in -- buyers currently have ZERO options -- yet another example of how low our inventory levels have become. | |
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If you are planning to buy a home for the holidays, do so soon, before all of the stores sell out |
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 Admittedly, a new home would be quite an expensive Christmas gift -- but still -- I'll press on.... As shown above, inventory levels are getting lower than ever before -- except, perhaps, decades ago when the local population was smaller? My data only goes back about 10 years. There are currently 315 homes for sale in all of Harrisonburg and Rockingham County -- a significant 24% decline from a year ago -- and a 44% decline from two years ago. When might things get "better" you ask? Well, hard to say! We're likely to see further declines over the next month or two -- maybe down into the 200's??? Come March, we should start to see inventory levels (hopefully!) increase again. | |
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Aha! This is why there are not not enough homes for sale! |
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 FYI -- yes, I now see I have a double "not" in the title of this article. No, I did not intend for that to be there, but I'll leave it there for now to see who is paying attention. ;-) Thanks, Nate, for pointing me to this insightful article at MarketWatch... There's not enough homes for sale. Here's why to blame. Here is a summary of the reasons why we're lacking inventory:
And, the author's ideas for how buyers can respond to the situation:
It's a great article -- read it all here -- and I think much or most of what they are talking about from a national perspective applies very directly to the Harrisonburg and Rockingham County housing market. | |
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Median Sales Price Poised To Increase 3% in Harrisonburg, Rockingham County in 2017 |
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 With 11 out of 12 precincts reporting -- wait, no, that was earlier this week -- With 11 out of 12 months behind us this year, it seems that the median sales price of residential properties (single family homes, duplexes, townhomes, condominiums) will have increased by 3% in 2017 to $198,000. A bit more context, not shown above....
So -- we might finish the year with the highest median sales price seen anytime in the past fifteen years -- and ultimately, the highest median sales price, ever, in Harrisonburg, Rockingham County. Read more about our local housing market via my market report published yesterday....
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Local Home Sales Slow, As Inventory Declines, But Prices Are Rising! |
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 Find out more about this Mountaintop Retreat on 46 acres with a cabin, hiking trails, canyon and river here. 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 with commentary online, or tune in to my monthly video overview of our local housing market...  Now, let's take a closer look at some of this month's data....  As can be seen above....
Last year certainly was interesting!?! Or odd!?! Last August, September and November were OFF THE CHARTS as far as a record number of home sales for those months -- which then makes this year's sales trajectory seem as slow as mud in August, September and November. This November's sales were a good bit higher than in 2014 and 2015 -- but were solidly below November 2016.
So -- despite the fact that 2017 is hiding in the shadows of a towering year of sales in 2016 -- it is interesting to note that the 11 months of home sales thus far in 2017 (all 1,149 of them) has already surpassed the full 12 months of sales seen in 2013 (1067 sales), 2014 (1085 sales) and 2015 (1125 sales). As such -- while total home sales will likely be 5% to 6% lower this year than last -- that will still mark a solid improvement as compared to any other recent year.
After quite a few years of steady increases in buyer activity -- we are starting to see a decline. Over the past six months we have seen buyer activity taper off and start to decline. I believe this is a direct result of the drastic reductions in the availability of homes for those buyers to buy. As the number of sellers in the market at any given time has declined, eventually that also resulted in a reduction in the pace of buying activity.
Yeah, so, about those inventory levels. They are low and getting lower!?! And, realistically, when and how do we think that would or could change? In theory, inventory levels will rise this coming Spring -- except they didn't during 2017. Looking back, the end of last November was the highest inventory level we saw for the following 12 months!?! So -- hmmm -- absent any outside factors (new home construction, anyone?) it is possible that the current inventory level (322 homes for sale) could be the highest inventory level we will see for the next 12 months!?! Stop and think about that for a moment....
Somewhat interestingly, as shown above, there has been a larger (proportional) decline in inventory levels for attached properties (townhouses, duplexes, condos) than for single family detached properties. There are now only 56 townhouse/duplex/condo properties available for sale in all of Harrisonburg and Rockingham County! And finally -- one last look at some interesting trends....
As shown above, nearly half (46%) of homes that are selling (not of all that are listed) are selling (going under contract) within 30 days of hitting the market. So -- yes -- the market is moving pretty quickly in many locations and price ranges! OK -- I'll stop there for now. There is plenty more in my full market report, so feel free to download it as a PDF, read the entire report online, or watch/listen to a video overview of this month's report. 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.... | |
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Owners of median priced City homes might have to pay $26 more per month to fund new City high school |
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 Numbers are funny. All of these statements are true based on current projections:
I'm guessing that if you ask most parents of school aged kids in the City if they'd be willing to pay $26 per month such that their child would not be in an overcrowded, not-so-ideal, learning environment for high school, they'd likely be quick to say yes. That said, this $26 per month increase would need to be paid for 25 years -- but for a parent of a child in the school system, I'm guessing that would still seem to be a reasonable cost. I'm also guessing that City property owners who do not have children in the local school system would LOVE for their property taxes to NOT increase. And I'll even go a step further -- I am guessing that they don't really want school aged children to have an overcrowded, not-so-ideal, learning environment -- it's probably just more about the increased tax burden. Anyhow. Numbers are funny. Read today's Daily News Record article, and feel free to form your own opinions. There seem to be plenty of them circulating through our community about this topic. :) | |
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How to find a qualified home improvement contractor in Harrisonburg or Rockingham County |
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 If you are looking for a qualified home improvement contractor in the Harrisonburg and Rockingham County, you may want to check out the Shenandoah Valley Builders Association's updated website and online directory! There, you will find a listing of contractors and other professionals in a variety of categories, including:
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Understanding the Process of Buying a Home |
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 Purchasing a home can be fun, exciting, thrilling, and fulfilling....but that very same process can also have its moments of being hard, frustrating, disappointing and overwhelming. In my role as a Buyer's Agent, I will be working with you through the entire home buying process to make it as educational and stress-free as possible. The very first step in this process is for us to discuss your needs, goals, dreams and desires. This may involve specifics such as the number of bedrooms and bathrooms, or may focus more on the layout of homes, the feel of a neighborhood, and the long term plans for your growing family. I will be focusing on listening well, and hearing what it is you are working to achieve with your home purchase – and then helping to identify the best housing options for accomplishing those goals. An important, parallel, part of starting the home buying process is to identify a target price range. This can best be determined through consultation with a reputable, local mortgage lender (just ask... I know who they are) but will involve more than just determining the highest priced home that they would allow you to purchase. It will be important to consider both your purchasing power, and your goals for how your housing costs will fit into your overall budget. You will also talk with your mortgage lender about how different loan programs might work better (or worse) for your situation. Once we have a shared understanding of what you are hoping to purchase, and we know what the price tag can and should look like, we can start to evaluate homes that are currently on the market. This will usually start online, perhaps through an exchange of emails, and saving some searches in your account on my web site. Then, you might choose to drive by some of the prospects before determining a list of homes to go view – or you may be ready to start seeing all of the homes on the list right away. As we view this first set of homes, we will learn a lot – about the opportunities in the market, and about your preferences. If we don't identify a home after looking at all of the homes on the market that seem to offer what you are looking for in a new home, we will either re-evaluate our criteria to expand our search, or we will wait to view new listings that come on the market. This extended home search process might take us weeks, or months, depending on the type of property you are hoping to purchase, and how often such a property becomes available. All along the way, I'll be following up on previous homes we have viewed to let you know if their prices have dropped, and will be letting you know of new opportunities as soon as those houses hit the market. Once we have identified the home you are hoping to purchase, we will prepare to make an offer. This will include researching similar home sales to guide our discussions of price, creating a negotiation strategy, and preparing and reviewing the pertinent contract documents. There is quite a bit of paperwork involved in making an offer on a home, and I want to make sure that you understand these contract documents and make sure that we have drafted them in a way to protect your best interests. Negotiating the final deal on the property you purchase may take a few hours, or a few days. We may go back and forth with the seller on price alone, or on many terms of the contract such as timing, contingencies, and more. Once we have a final agreement, all parties will sign and initial the final documents, and we will have a full ratified contract. Immediately following the ratification of the contract, we will need to schedule and perform a home inspection and radon inspection (assuming you are conducting both) to learn more about the property you are purchasing. If these inspections reveal new (detrimental) information about the property, we will have the opportunity to request that the seller make repairs to the property, which may result in a renegotiation on price. Typically, we are able to work through this second round of negotiations relatively quickly, so long as the seller is being realistic and rational given the new information about their property. Simultaneously with conducting these inspections, you will need to be starting the financing process to work towards obtaining full loan approval. This will start with signing your loan application and paying any applicable loan application or appraisal fees. Your lender will then be diligently working to further qualify you as a purchaser as well as the property via an appraisal. You will be providing many documents to your lender during this process as they work towards securing a loan for you to purchase the property. Within the first few weeks after your contract is in place, we will need to select service providers to coordinate the additional aspects of your home purchase. This will include a settlement agent or attorney who will conduct a title search of the property and prepare all documents for your settlement. You will also need to set up a new homeowners insurance policy on your new property, as well as schedule utility service to start in your name as of the settlement date. We'll now be just a few weeks before closing, and the final pre-settlement details will include reviewing the settlement statement (which shows all of the funds coming into and going out of the closing), conducting a final walk though of the property (to confirm the condition is as we expect it to be), and obtaining a cashier's check to bring the necessary funds to settlement. All of the details should be falling in place now, and if all goes well, we will be set for an on-time settlement. In nearly all real estate transactions (in this area) you will sign all of the loan and settlement documents at your real estate closing as well as receive the keys to your new property. The house will be your new home, and you can take possession and start moving in immediately after settlement. Later that day, the settlement agent will record the deed at the courthouse that officially transfers ownership of the property into your name. You are bound to have questions about the home buying process – before you begin, as we go, and even after settlement. I am here to answer all of those questions, or to guide you to the professional who can. There is plenty to learn about the home buying process, and I am here to help guide you through it and to help you make excellent decisions about your purchase of a home. Learn more about the home buying process at BuyingAHomeInHarrisonburg.com. | |
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Should You Take Your House Off the Market for Winter? |
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 In some ways, NO, you should NOT take your house off the market -- because there is a historically LOW number of homes for sale right now. And yet, still, some folks will take their homes off the market for the winter. Our local MLS requires a house to be off the market for 90 days before the "Cumulative Days on Market" statistic resets. So, if you take your house off the market today, you could put it back on the market on March 8, 2018 and have that statistic reset. During these 90-ish days of being off the market, we will want to talk about price, condition and marketing....
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How should land just outside Harrisonburg, in Rockingham County, be used in the future? |
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 Just as there is a land use guide for the City of Harrisonburg, there is also a Conceptual Land Use Plan for many areas of Rockingham County. Above, I have included the Conceptual Land Use Plan for the areas just outside Harrisonburg (but in Rockingham County) for the year 2050. You can find many more maps -- showing different time frames, and different areas of the County -- on the County's comprehensive plan website. Of note, as you glance at the map above (or this PDF) you might note that the bright yellow regions are intended to be developed for residential use. It is not surprising that the largest contiguous section of such land is just East of the City, in what is referred to as the Urban Development Area. Industrial uses seem to largely be focused just North of the City and just South of the City. Enjoy exploring many more maps here. | |
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How should land in Harrisonburg be used in the future? |
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 There's a map for that, it seems! Check out the Draft Comprehensive Plan (chapters) for the City of Harrisonburg where you'll find all sorts of interesting maps, including:
The Land Use Guide (draft for inclusion in the 2019 comprehensive plan is shown above) recommends future land uses, but is not regulatory. That is to say that if a piece of undeveloped land is zoned for residential use, but is shown in a "Mixed Use" area in the Land Use Guide map, then staff would likely look favorably upon a future request for rezoning to a mixed use designation. Check out all of the draft chapters of the Comprehensive Plan here. | |
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Fewer and Fewer Homes For Sale in City of Harrisonburg |
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 The number of homes for sale in the City of Harrisonburg keeps dropping. That's not to say that homes aren't selling -- a total of 378 homes have sold in the City of Harrisonburg during the first 11 months of the year -- putting us at a pace of 34 home sales per month. But the number of homes available to buyers continues to decline -- now down to 75 homes for sale, after having fallen below 100 homes for sale for the first time at the beginning of this year. Here's a bit longer of a context....
Of note, those 75 current listings are comprised of:
If you're looking to buy a home in the City of Harrisonburg it might be difficult to find a home that is a perfect fit or you given a very limited supply of homes for sale. And when a home does come on the market that works for you, it is likely to sell quickly. | |
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Realtor Association and Madison Center for Community Development Publish Local Housing Needs and Market Analysis |
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 The Harrisonburg-Rockingham Association of Realtors and the Madison Center for Community Development recently (Nov 2016) published a Housing Needs and Market Analysis of the Harrisonburg and Rockingham County area. There is a LOT of data, analysis and insight in this report -- so feel free to download and read it if this is of interest to you -- or I'll bring some further highlights from it to my blog in the near future. Download the report here. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
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