Home Sales Up 19% In Harrisonburg, Rockingham County In 2021


Home Sales Up 19% In Harrisonburg, Rockingham County In 2021
By Scott Rogers • May 19, 2021
Happy bright, sunny, soon-to-be-hot, Wednesday morning to you! Curious about how things are going in our local real estate market? Here's a snapshot of what now just seems like a typical day in the local real estate market... Driving To Work In The Morning: "Oh, look, that house was just listed for sale!" Driving Home From Work In The Evening: "Wait!? What!? Already under contract!?" Indeed, homes are selling FAST right now - often with multiple offers - often selling over their asking price. Feel free to download a PDF of my full market report or keep reading as I dive into the data to take a closer look at the latest trends... As shown above... There were 21% more home sales this April than last April. This is at least partially due to the fact that last April was affected by Covid, with fewer buyers having contracted on homes to purchase in March, and thus fewer home sales closing in April. There are 19% more year-to-date (January through April) home sales this year compared to last year! Over the past year, 1,566 homes have sold in Harrisonburg and Rockingham County -- a 15% increase over the prior year. Many more buyers are buying homes "these days" than in the "recent past." The median sales price of homes that have sold in the past year is 9% higher than the prior year. Translating that into dollars -- the median sales price of homes in our area is currently $249,900 -- up from $229,000 just one year prior. Homes have sold 56% faster this past year (median of 7 days on the market) compared to the prior year (median of 16 days on the market). So, if April 2021 home sales were way above April 2020, how did they compare to other recent months of April? As shown above, this month of April -- with 117 home sales -- was the strongest recent month of April. The next strongest month of April was in 2019 when we saw 112 home sales. Looking ahead, it seems likely that we'll see somewhere between 130 and 160 home sales in May, if 2018 and 2019 are a good guide. It seems unlikely that we'll sink as low as the 111 home sales we saw in 2020 during the start of Covid. Slicing and dicing things a bit differently, this year has stacked up quite nicely compared to past years... With 442 home sales in the first four months of this year, this is a very strong start compared to the past few years, and even most/all of the years prior that are not shown! Here's another visualization of the surge of home sales activity we have been experiencing over the past year... The orange line above is the one that looks a bit odd right now - largely due to Covid. After seeing the annualized pace of home sales steadily increase for several years, things dropped off quickly between April and July of 2020 due to the onset of Covid. But then, things started heating up -- quickly! Home sales have been flying high, increasing ever further and faster, for the past nine months and aren't showing any signs of slowing down. Sales prices, on the other hand, didn't take a nose dive last spring -- they have been "slowly" and steadily plodding along and upward. I say "slowly" because the increase has not been at the same breakneck speed of home sales -- but we have seen a much higher than normal (9%) increase in sales prices over the past year. What should we expect over the next few months, you might ask? We have seen many more contracts over the past two months (143, 140) than we saw during those same months last year (116, 120) though - to be fair - last March and April were an uncertain time due to Covid. The number of contracts signed over the past two months does, though, indicate that we'll see strong months of closed sales over the next two months -- and we're still at the front end of the strongest six months of the year as far as the number of homes that sell in Harrisonburg and Rockingham County. So, don't expect things to slow down or calm down anytime soon! Several folks have asked me over the past month -- how can so many homes be selling when inventory levels are so low!? Indeed, a confusing phenomenon, at first. There are fewer houses on the market right now than at any time in the past several years. Buyers today have less than 100 homes to choose from in all of Harrisonburg and Rockingham County. But -- that doesn't tell the whole story. Quite a few new listings come on the market each month -- giving buyers quite a few choices over a month long period -- but because so many of those new listings are going under contract so quickly, the influx of new listings never has a net impact on the number of houses remaining actively for sale at the end of each month. So - you won't have many options of homes to buy in a single day, but if you can give it a few weeks or months, you should have plenty of options over time. Did I mention that homes are going under contract quickly? Over the past year, 72% of homes have gone under contract within 30 days -- and half of homes have gone under contract within 7 days!?! This rapid pace of buyers signing contracts on homes is what is keeping inventory levels so low. If you're just entering into the market to buy, you'll likely be astonished / disappointed by how few options you have right now -- but again -- just give it a bit of time and evaluate those new listings as they come on the market -- but do so quickly, before they are under contract! If you're fortunate enough to secure a contract on a house, you are likely excited about the low interest rate you'll have on your new mortgage... After having started rising -- above 3% -- the average 30 year fixed mortgage interest rate has dropped (barely) below 3% again. This is an outstanding (and historically low) interest rate that gives current home buyers a unique opportunity to lock in a low long term interest rate on your mortgage. So, there we have it. Lots of homes are selling, quickly, at higher prices than ever. What is a seller to do? Smile. Still take time to prepare well, make sure to price appropriately, and market your home thoroughly. Get ready for a rush of showings. Enjoy the process of likely choosing a buyer from multiple offers with highly favorable terms. What is a buyer to do? Grimace? Cry? Put on a tough face? Get prequalified ASAP. Look at listings on the first day they hit the market and be ready to make a rapid decision. Thoughtfully craft your offer and its pricing and contingencies to try to balance making a wise decision -- with actually securing a contract to buy a house. If you're thinking about buying or selling soon and would like to talk a bit more about your particular situation, I'm happy to meet with you or set up a time to chat by phone or zoom. Simply reply to this email or text/call me at 540-578-0102. Best wishes for a pleasant balance of the month of May, and I'll be in touch again in June! Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? 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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 24, 2024 (unless otherwise noted).
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