Newer Posts | Older Posts |
Home Sales Up 8%, Prices Up 3% in Harrisonburg, Rockingham County |
|
Seven months into 2012, the Harrisonburg and Rockingham County housing market is showing signs of steady improvement in the pace and price of home sales. Click here to download the PDF of my full market report, or read on for highlights. Most indicators above show signs of a stabilizing local housing market:
July 2012 was quite a month for home sales --- and this year has shown a strong upward May-June-July sales trajectory, not unlike the 2009 sales trajectory. While the graph above only shows price trends for single family homes (not the overall market) it is encouraging (for sellers, at least) to see a halt to the multi-year decline in home prices in the area. Among other market trends to improve, the list price to sales price ratio has also started to improve in Harrisonburg and Rockingham County. This means that sellers are (on average) negotiating less off of their asking prices when selling their homes. This is more welcome news for sellers --- and buyers should take note that their window of maximum negotiating ability might be starting to close. Record low mortgage interest rates have certainly helped to spur on the local housing market as buyers continue to take advantage of their opportunity to lock in their housing costs for now and the future. For much more insight and analysis, click on the image above to download my full market report specifically focused on Harrisonburg and Rockingham County. | |
Local Housing Market Shows Signs of Strength in First Half 2012 |
|
Halfway through 2012, the Harrisonburg and Rockingham County housing market is showing signs of returning stability and strength. As shown in the accompanying graph, the pace of local home sales (in the first half of the year) has been slowly increasing ever since 2009 – aside from temporary spike in 2010 related to the federal home buyer tax credit. In even better news, however, the local market is finally experiencing stability in prices. The median price of homes fell 10.5% between 2008 and 2011, but is finally starting to increase again. The median sales price during the first half of 2012 was $172,000 – which marks a 4% improvement over the first half of last year when the median sales price was $165,000. If you're looking to buy a home sometime in the next year, you will be well served do so sooner rather than later. A changing tide in the local housing market and the historically low interest rates make it a great time to buy. Despite falling inventory levels, you will still have plenty of choices and a good amount of negotiating ability. If you're looking to sell your home in the next year, things will hopefully be brighter and brighter from here. The pace of sales has increased and prices are stabilizing, so hopefully you won't see further declines in your home's value. If you absolutely have to sell now or soon, it shouldn't be as tough to do so as it has been recently --- but if you can wait, you would be well served to do so for another year or two to allow home values to recover further. After two wild five year cycles (up between 2000-2005, and down between 2005 and 2010) we are finally starting to see stability and growth in the Harrisonburg and Rockingham County housing market. The pace of home sales increased in 2011, and is set to do so again in 2012 – and it now appears that we may also see an increase in median sales prices during 2012. | |
Which seller do YOU want to be? |
|
Believe me -- there are an abundance of both types of sellers in the current market. Keep in mind, of course, that all sellers who don't sell in the first 90 days are not necessarily sellers who priced their home based on other list prices instead of sold prices. Sometimes (many times) there are other factors that also affect the speed of the sale. It is important, though (very important!) to be basing your pricing decisions on what buyers are actually paying for houses --- not what long-standing would-be sellers are hoping that buyers will pay for their houses. It is, of course, easier to figure out what would-be sellers are asking for their houses (view any public real estate web site) and harder to easily ascertain what buyers are actually paying for houses. That is where I can help -- if you're getting ready to sell, let's start by reviewing recent sales similar to your house -- not just active listings similar to your house! | |
Preliminary Report: July was a great month for home sales |
|
Stay tuned for my monthly market report 7-10 days from now. Until then, get excited, as preliminary data indicates that July 2012 was a GREAT month for home sales. July 2011 Home Sales = 77 July 2012 Home Sales = 85 Bear in mind that the July 2012 data does not yet include many of the closings that have happened in the past day or two. | |
Virginia home sales continue to rise, 11% YOY |
|
And.....Virginia's median sales price has increased 7.5% year-over-year. Read more in the recently released 2012-Q2 Virginia Home Sales Report. | |
Summer, Fall best time to get low mortgage interest rate |
|
Check out this interesting analysis from Dan Green, showing that interest rates are typically lowest in the summer and fall. Talk to a lender now if you're thinking of buying this summer or fall! | |
How did the first half of 2012 compare to previous years? |
|
Things to note....
What this means for you....
| |
To rent, or to buy a Harrisonburg townhouse |
|
In meeting with a potential buyer of a City townhouse yesterday, we found ourselves comparing the opportunities in buying versus renting. RENT = $900/m. There are regularly options for renting a two-story townhouse in Harrisonburg for $875-$950 in Avalon Woods, Beacon Hill, Stonewall Heights, Liberty Square, etc. BUY = $817/m. With an FHA loan, buying such a townhouse apparently may cost as little as $777 per month assuming a $130K purchase price, 3.25% interest rate, 3.5% down payment. This shows an $83/month cost savings of buying instead of renting. If we then look at the difference between renting and buying over a five year time period, the advantages start to pile up. You'll also want to keep closing costs in mind (for buying) but as you can see, there are some compelling reasons to consider buying a townhouse if you are in the market to rent one but know that you'll be in the area for the next five years. The mortgage details were generated using Wells Fargo's online mortgage estimate tool and this is the scenario I was considering. | |
When Do Homes Close in Harrisonburg? |
|
Inspired by Jim's analysis of the timing of closings in Charlottesville, I thought I'd take a look to see how many closings typically happen on each day of the month. The data above shows how many homes closed in Harrisonburg and Rockingham County on each day of the month for the past year. There are certainly plenty of closings pushed towards the end of the month --- though not as many as I suspected. Buyers often tend to close towards the end of the month to bring less money to closing --- though you the end up owing your first mortgage payment more quickly. August 15 closing
August 30 closing
| |
Apartment vacancy rates (nationally) hit new 10-year low |
|
Per Calculated Risk, REIS is reporting the lowest apartment vacancy rates in 10 years. The REIS metric is just based on large cities, but this is an overall trend being seen in many markets across the country. In Harrisonburg, there continue to be surpluses in student housing apartments, but vacancy rates do seem to be quite low for non-student rental properties in and around Harrisonburg. | |
Six months into 2012, local housing market shows signs of steady improvement |
|
BREAKING NEWS -- six months into 2012, home sales are up, prices are up, inventory is down, and mortgage interest rates are down! All of this spells good news for the Harrisonburg and Rockingham County housing market! Click here to download a PDF of the July 2012 report on the Harrisonburg and Rockingham County housing market, or read on for some highlights. There were many signs of improvement in the local housing market this month, shown above:
In not quite as rosy news:
One reason for the improvement in the local housing market is that we continue to see declines in the number of homes on the market --- fewer sellers results in a more balanced market. Not only have inventory levels dropped 17% over the past year, but they have also declined 4% in the past month --- which is not a typical trend for this time of year. Not only are there fewer sellers in the market, there are also many more buyers in the market. The annualized pace of home sales (shown above) measures the number of sales in twelve month periods to reduce the impact of month-to-month fluctuations. As shown above, buyers are currently buying homes at an annualized pace of 813 sales/year -- up 15% from one year ago. For much more insight and analysis, click on the image above to download the full 27-page market report specifically focused on Harrisonburg and Rockingham County. And -- if you have questions about the local housing market, or if I can be of assistance to you with real estate that you own, or that you'd like to own, please be in touch. You can reach me most easily at 540-578-0102 or scott@HarrisonburgHousingToday.com. | |
Preliminary reports show positive trends in local housing market |
|
PACE OF HOME SALES UP 3% Home Sales in First Half 2011: 366 Home Sales in First Half 2012: 377 (up 3%) MEDIAN SALES PRICE UP 4% Median Sales Price in First Half 2011: $165,000 Median Sales Price in First Half 2012: $172,000 (up 4%) A few more sales will trickle into the system over the next few days. Expect my full report towards the end of this week. | |
Local housing inventory bucks historical trend |
|
Summer is not quite over yet (100 degrees today, I hear) --- but the local housing market is already showing some signs of fall --- and that's a good thing! Typically our local housing inventory continues to increase through July before starting to decline heading into the fall. This year, however, we're seeing a decline in local housing inventory earlier than we typically do. Perhaps it is the result of more buyers making buying decisions. Perhaps fewer sellers are trying to sell. Whatever the reason, it is helping to (slowly but surely) bring more balance back to our local housing market. | |
Virginia home prices increase 11% |
|
Virginia home prices have increased 11% over the past year when comparing the May 2011 median sales price to the May 2012 median sales price. Read this good news and more in the most recent Home Sales Report from the Virginia Association of Realtors. | |
Strong March, Slow April, Strong May. Will June home sales be strong or slow? |
|
Home sales are up 6% year-to-date, which is great! Though the month by month stats have been a bit nerve-wracking.....
Perhaps June will be a predictable month, right on par with last June? | |
How do you market and sell a $750K+ home in Harrisonburg or Rockingham County? |
|
There are 17 homes on the market in Harrisonburg and Rockingham County priced over $750K -- view them here. How many of these impressive homes are likely to sell this year? Well, as it turns out, the high end home market ($750K+) is on fire in 2012 (with 1 sale thus far) as compared to 2011 when not a single home sold for more than $750K as reported by the HRAR MLS. Yes, you heard that right, not a single home over $750K sold during 2011 through the HRAR MLS. Which brings me back to the question at hand..... How do you market and sell a $750K+ home in Harrisonburg or Rockingham County? There are plenty of marketing strategies and techniques that can be employed (e-mail me and we'll discuss them) but the main point here is that a seller needs to set realistic expectations based on how large the pool of buyers is for their particular segment of the market. If nobody has bought a home like yours (based on price, size, location, whatever) during the past year --- what are you going to do in the marketing and pricing of your home to get different results? Don't do the same thing that other sellers have done for the past year and expect different results. | |
Lot sales (of less than an acre) seeming stable in Harrisonburg, Rockingham County |
|
It's a tough time to sell a building lot in Harrisonburg or Rockingham County. Before the real estate boom of 2003-2007, roughly 200 lots sold per year. In recent years, only 60 lots have been selling per year. However.....
The graph above represents lot sales reflected in the HRAR MLS of less than one acre. See a clearer version of this graph on Page 18 of this PDF. | |
Buying choices continue to shrink in the Harrisonburg area |
|
As mentioned in the Daily News Record today, the number of homes for sale keeps declining. Current inventory levels are down 14% (see the graph above) from one year ago --- and down 25% from two years ago. SELLERS: Research (with your Realtor's help) inventory in your segment on the market (age, location, size, price). You need to know if your segment of the market is also experiencing declining inventory. Price, market and negotiate according to what you find. BUYERS: If you are attempting to buy in an under-supplied segment of the market, be ready to act fast when the right property comes along with home sellers who have priced the house to sell. WOULD-BE SELLERS: Research your segment on the market to see if you'll be listing your home in an over-supplied or under-supplied market. You might be positioned quite well to sell quickly --- or, you might be in for a long wait. Read more about the local housing market in my full monthly market report by clicking on the report cover below. | |
Strong spring contract figures point to continued strength in local home sales market |
|
Take a look at the past four months of contracts (356) --- marking a 6% increase over the same four months of 2011. With the pace of home sales up 6% over this time last year, and contracts up 6% over this time last year, we are likely to see a continuation of the strong 2012 local home sales market into and through the summer months. Read more in my most recent housing market report (click on the cover below).... | |
June 2012 Housing Market Update: Sales Up 6%, Prices Up 7% |
|
The Harrisonburg and Rockingham County home sales market is roaring through 2012 through, likely due to low mortgage interest rates and low local unemployment levels.... There are very promising sales updates across the board:
A warm February lead to higher than normal March sales, followed by a slower than normal April, finished off most recently by the best May in three years. In other exciting news....
Click the image below to read the entire June 2012 Market Report.... | |
Newer Posts | Older Posts |
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