It Does Not Seem That Home Prices Are Declining, Overall, But Some Sellers May Elect To Sell At Lower Than Expected Prices


It Does Not Seem That Home Prices Are Declining, Overall, But Some Sellers May Elect To Sell At Lower Than Expected Prices
By Scott Rogers • November 3, 2023
The median sales price in Harrisonburg and Rockingham County has risen 10% over the past year. That's an increase from $292,000 to $322,750. As such, it really does not seem that home prices are declining, overall. But... some (but likely not many or most) sellers may elect to sell at lower than expected prices. Here's why... Let's say you're selling a home priced at $322,750 that you purchased five years ago. That $322,750 is the median sales price... so let's just walk it backwards to imagine what your home might have been worth 1, 2, 3, 4 and 5 years ago. Today = $322,750 1 Year Ago = $291,950 2 Years Ago = $265,700 3 Years Ago = $238,400 4 Years Ago = $215,250 5 Years Ago = $212,000 So... you bought your home for $212,000. Last year you estimated it was worth $291,950... a $79,950 gain in four years. Today you estimate it to be worth $322,750... a $110,750 gain in five years. So, if you are selling your house today, and you price it at $322,750... and it doesn't go under contract within the first few weeks... or not within the first month or two... will you keep it priced at $322,750 indefinitely? Likely not. You -- and some other sellers -- would likely be happy to sell for somewhere between $291,950 and $322,750. Selling (this fictional house) for $291,950 is certainly quite a bit below where we believe the value to be today, but it is also a $79,950 gain in five years. All this is to say, that if you are serious about selling, and you have your house on the market, and it hasn't gone under contract... we shouldn't get too stuck on what your house should be worth today, and what it is worth today... we should evaluate the price at which it makes sense for you to sell... and how we might price it to have it go ahead and go under contract... even if that is at a lower price than we might otherwise expect. Put more simply... home sellers from three or more years ago potentially have a LOT of equity to play with when pricing their home to sell... and can likely tweak the pricing to motivate a buyer to go ahead and commit to buying. 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 22, 2024 (unless otherwise noted).
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