Home Sales Slow, Prices Pop, Contracts Climb


Home Sales Slow, Prices Pop, Contracts Climb
By Scott Rogers • June 11, 2018
Find out about this beautiful home at Preston Lake: 3168PrestonLakeBoulevard.com. 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... OK -- now, let's take a look at some of the basic market indicators this month... Plenty of statistics of interest above, including... Home sales dropped 18.79% in May 2018 -- down from 149 sales last May to only 121 sales this May. This brought our year-to-date (Jan-May) sales figure down 2.91% to 467 sales as compared to 481 sales in the first five months of last year. Looking at a full year's worth of data, 7% fewer homes are selling right now (1,247 per year) as compared to a year ago when 1,340 per year were selling. The year-to-date median sales price has risen a whopping 10.53% to $208,900 -- up from $189,000 at this time last year. Looking at a longer timeframe (12 months) we find a 7% increase in the median sales price in Harrisonburg and Rockingham County -- as it has risen over the past year from $192,700 to $206,000. Homes are selling 36% faster now (median of 30 days on market) than they were a year ago when the median was 47 days on market. So, as seen above, May sales were slower than (I) expected. After the best February, March and April in recent memory -- home sales in May 2018 fell below both May 2017 and May 2016. What gives? Well, perhaps, it is just some month-to-month variation between years. Keep reading to find out why all is not lost when it comes to late-Spring and early-Summer home sales. :-) Looking at a slightly longer timeframe, the pace of home sales in the first five months of this year is only lagging slightly behind where we were last year -- and thus putting us in second place for the pace of home sales in Harrisonburg and Rockingham County. Have you heard it's a seller's market? There are fewer and fewer sellers (keep reading for details) and this has buyers fighting over properties in some price ranges (and locations) -- which has resulted in sellers needing to negotiate a bit less on their price than in years past. The median ratio between the sales price and list price is now 99%, as compared to 97% - 98% over the past five years. Yep -- this is the crazy one! Last May we saw 133 homes go under contract -- this May there were 171!?! I'll have to check my historical archives to be sure, but I think this may be the MOST contracts we have EVER seen in a single month EVER. Wow. So -- even if we were despairing that home sales were slowing in May -- perhaps we can excitedly look forward to June (and July) when these May contracts start turning into closed sales. Again -- wow! And yes, as mentioned above, inventory levels are falling -- fewer and fewer homes are on the market available to a buyer on any given day. We have seen a 42% decline in inventory levels over the past two years -- and a 12% decline in the past 12 months. The decline is slowing -- which might mean this inventory level can only go so low -- but this is what is causing so much frustration for buyers -- and oftentimes, so much delight for sellers! :-) Faster and faster and faster, oh my! Indeed, homes are selling even more quickly now than they were a year ago. Half of the homes that sold in the past year were under contract within 30 days of hitting the market. If you are a buyer -- be ready to act FAST! And finally, interest rates are on the rise. :-/ It costs more to finance a home purchase now than it did a year ago. I commented to a client today that today's interest rates are still ridiculously low compared to any longer-term historical perspective, but he was quick (and wise) to point out that this fact doesn't necessarily matter much for today's buyers. Why are they going to appreciate that today's interest rates are lower than they have been for most of the past 20 years -- all they care about is that they are going to be paying more to finance their home purchase now than if they had bought six months of a year ago. OK -- I'll stop there for now. Again, you can download the full report as a PDF, read the entire report with commentary online, or keep reading my blog in the coming days for further commentary. One last note for anyone thinking of buying or selling soon -- SELLERS -- even though it is a seller's market in many price ranges right now, you must still focus on price, condition and marketing. BUYERS -- it can be difficult and frustrating to buy right now -- make it a bit easier for yourself by knowing the market, knowing the process, knowing your buying power, and closely monitoring new listings! For further reading on buying or selling in this area, check out.... BuyingAHomeInHarrisonburg.com SellingAHomeInHarrisonburg.com And if YOU are ready to get the process started, simply contact me at 540-578-0102 or scott@HarrisonburgHousingToday.com. Receive Updates by Email Recent Articles: 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 Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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