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Surprisingly, September Sales Seem Somewhat Sluggish |
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![]() OK, admittedly, the month is only halfway over at this point, but thus far, buyers have been signing contracts at a slower pace than last September. Last September, 51 buyers had signed contracts in the first 15 days of the month -- this September, only 33 buyers have done so. Hopefully we will see some renewed buying activity in the last two weeks of September. | |
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We should talk through the numbers |
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![]() There are a lot of numbers to calculate, understand and discuss if you are considering selling your home -- especially if it will involve then purchasing a new home....
Many of these questions are interrelated, some require talking to a loan officer, and all of them are questions that should be discussed and considered before we put your house on the market. I want you to have a clear view of the big picture financial transition you will be making if you decide to sell your current home and buy a new one. This conversation can happen at my office, at your home, or at a coffee shop of your choosing. You don't need to have come to the conclusion that you will definitely be selling in order for us to have these conversations -- let's start chatting to help you determine whether a move now makes sense, given all of the pertinent numbers and details. | |
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Nice look at layout of Hotel Madison, Madison Hall, Mason Street Parking Lot |
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![]() click here to view a larger version This (above) is a nice view of the intended building layout in the quadrant bounded by Main Street, Martin Luther King, Jr. Way, Mason Street and Grace Street. The Mason Street Parking Deck is currently in the early (very early) stages of construction. Madison Hall exists, but will be renovated. Hotel Madison is yet to be started. | |
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Showings Slow Despite Strong Sales |
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![]() Sales are up 8% this year -- but showings have been down (year-over-year) for the past four months. Any number of theories could (partially) explain this....
Other theories? | |
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Walk Through This Home, 787 Confederacy Drive |
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![]() Take a few minutes to walk through this exquisite, custom built home overlooking the fifth hole of Lakeview Golf Course offers upscale finishes, privacy and convenience. Enjoy one level living and an open floor plan with vaulted, tray and cathedral ceilings. The flooring throughout most of the home is a custom-cut hardwood, and the kitchen features granite countertops, a sizable pantry and upgraded appliances. The bathrooms, crafted by an Italian artisan, are finished in granite mosaic and Italian marble terrazzo. The master bathroom features a whirlpool tub, walk-in shower and his-and-her closets. This professional landscaped lot offers a park like setting with a gazebo, storage shed, and of course, the ambiance of being right on the golf course. Click here to walk through this home, on your computer, phone or tablet. Or, visit this home's property website. Or, view high resolution photos of this home by clicking the collage below.... ![]() | |
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The under $200K market is the healthiest |
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![]() "Months of Housing Supply" is determined by dividing the number of buyers buying (on average over the past 12 months) into the number of sellers selling (number of current listings). This graph (above) does so for each of four different price ranges in our local market. Here's what we find.... Under $200K
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August Home Sales Hit 8 Year High per September 2015 Harrisonburg Housing Market Report |
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![]() Learn more about this month's Featured Property: 787 Confederacy Drive I just published my monthly report on the Harrisonburg and Rockingham County real estate market. Jump to the full online market report, or download the PDF, or read on for highlights.... ![]() Good news -- after a a slightly slow July 2015 (16% fewer home sales as compared to July 2014) we saw the market pick back up again in August 2015 -- showing a 13% improvement over August 2014. This has contributed to the 8% year-to-date improvement in the pace of sales in Harrisonburg and Rockingham County. As noted above, the median sales price has also increased by 7% thus far in 2015 -- and the average sales price is up 5% as compared to this time last year. ![]() As noted in the headline, August home sales (all 120 of them) marked an eight year high for August home sales in Harrisonburg and Rockingham County. This was after a slightly slower July. Looking at the entire summer, here's what we find....
Most housing market analysts consider six months of inventory (active listings) to be an indicator of a balanced market (between buyers and sellers). The "BUYERS" trend line above is illustrating how many buyers are buying in a six month period. The "SELLERS" trend line above is illustrating how many sellers are in the market (active listings) at any given time. As you can see, our market has been seeing a steady increase in buyers in the market and a decline in sellers in the market -- and we are almost to a balanced market. And, as shown above, inventory levels keep marching downward. It's typical for this time of year, but not the most exciting news for home buyers who are selecting from a smaller and smaller pool of prospective properties. OK, that's it for now. I'll hit some high points here on HarrisonburgHousingToday.com in coming days. In the meantime, you can read the full September 2015 Harrisonburg Housing Market Report online or by downloading the PDF. And as is always my encouragement -- if you will be buying or selling a home in the near future, become a student of the housing market! Learn what has been happening recently, what is happening now, and what is likely to happen next. Being informed will allow you to make better real estate decisions.If you are ready to buy or sell a property in Harrisonburg or Rockingham County, contact me at 540-578-0102 or scott@HarrisonburgHousingToday.com to get the process started. | |
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Invest $32K and make $7K back per year? |
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![]() As shown per the above analysis, found on HarrisonbugInvestmentProperties.com, the purchaser of a condo at Campus View could potentially invest $32K (20% of the purchase price as a down payment) and be making $7K(+) per year in positive cash flow before taxes. Not bad, not bad, not bad at all! Despite the abundance of caveats (some listed below) this is a great investment opportunity to explore depending upon your tolerance for risk....
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Last call for a new townhouse at The Townes at Bluestone in 2015 |
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![]() If you were hoping to buy a new townhouse at The Townes at Bluestone in 2015, you only have one more opportunity to do so. These townhouses are selling fast, and there is only one remaining townhouse available that could be completed this year. There are plenty more in future sections of the community, but the next building will not be complete until Spring 2016 (+/-). Feel free to walk through the model home, online, in 3D here. | |
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Buyers have fewer, and fewer, and fewer choices. |
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![]() Despite my reminder that while summer is over, it is still not too late to get your house on the market, we continue to see inventory levels declining. This is typical -- not unusual at all -- but certainly frustrating for some Fall buyers who would love to have more homes to choose from not fewer. Inventory levels are likely to continue to decline through the end of the year, and are not likely to see a measurable increase from their low Winter levels until we get to March or April. | |
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Not finding success in selling your home? Focus on what you have control over. |
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![]() If you are having difficulty finding a buyer for your home, and you are receiving critical feedback regarding your home's location, neighborhood, floor plan or size, then I would encourage you to focus on what you have control over. You are unlikely to change your home's location, neighborhood, floor plan or size -- at least not in a cost effective manner. Thus, you can either wait (and wait, and wait) for the buyer who will purchase your home despite those factors -- or you can focus on the three main areas that you have the most control over as a home owner.... PRICE If your home is listed for $350K and buyers don't like the neighborhood, location, floor plan, etc., -- they very well might like those features more (or be willing to look past them) if your home were listed for $340K, $330K or $320K. We pick our competition based on your list price -- and maybe we've entered ourselves into too high of a weight class. If we adjust the pricing, we'll have new competitors, with whom we'll hopefully be able to better compete -- and buyers may then be willing to look past their prior objections given the new value proposition. CONDITION Are there areas of your home that could be freshened up to show your house in a more positive light to buyers -- or to not overwhelm them as much with the updates they will need to make? Perhaps some fresh paint, fresh mulch, landscaping tune-up, new light fixtures, replacement carpet in a few rooms, etc.? MARKETING Are we reaching every possible buyer in every possible way? Is your home being marketed as fully as possible both online and offline? Where do the potential buyers of your home live now? How can you reach them? Are they in town buyers? Out of town buyers? What aspects of your home will appeal most to them? Some home sellers (or would-be sellers, as it were) dwell on what they cannot change -- location, layout, neighborhood, etc. Let's chat about the three areas identified above that you do have some control over, and make sure you are positioned well for the Fall market. | |
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City real estate tax rate drops $0.015 after increasing $0.045, so really, still an increase |
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![]() The City of Harrisonburg had decided to increase the tax rate by 4.5 cents in 2015 to 73.5 cents per $100 of assessed value. That has now been ratcheted back down (by 1.5 cents) to a final tax rate of $0.72. Read more in the Daily News Record. | |
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Walk through this new condo in Harrisonburg VA |
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![]() Walk through this new condominium at Founders Way, centrally located in Harrisonburg less than two miles away from downtown Harrisonburg. These condominiums for homeowners are a part of the existing Liberty Square neighborhood providing access to many amenities, including a jogging trail, workout stations, playgrounds and putting area. Each condo at Founders Way features a modern kitchen and an open floor plan, and all residents have access to high-speed internet access and a cable television service. Find out more about these new condos at FoundersWay.com. | |
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Summer is over, but it is not too late to get your house on the market |
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![]() Yes, you are correct, you likely missed the most active months of home buying in our local market -- last year more buyers bought in May through August then in any month thereafter. However, as shown above, there were still plenty of buyers signing contracts in September and October -- and November wasn't too terrible either. If you're going to be putting your house on the market this Fall, we should be talking, and planning, now. We need to determine an appropriate price given current market conditions, and we need to discuss any improvements you will be making to your house before it goes on the market. | |
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Multi Family Properties in Harrisonburg VA |
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![]() As I was developing HarrisonburgInvestmentProperties.com, one of my editors commented -- "Multi Family Properties? We don't have have Multi Family Properties in Harrisonburg, do we?" In fact, we do. Sometimes it is a duplex (the whole thing, both sides), or a triplex, a quad, or a small apartment building. They do exist in Harrisonburg, and there are always a few for sale to consider. Check them out on HarrisonburgInvestmentProperties.com. | |
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Introducing HarrisonburgInvestmentProperties.com |
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![]() Many of my past clients have considered, or are considering, the purchase of an investment property in Harrisonburg as a means for diversifying their investments. Today, I launched a new website, HarrisonburgInvestmentProperties.com to provide an overview of your options if you are considering the purchase of an investment property in Harrisonburg, Virginia. This new website features investment properties in a number of categories, including.... ![]() On this new website you can explore a variety of communities where you might consider the purchase of an investment property, and explore useful information such as the pace and price of sales in the community.... ![]() ....a concise investment analysis of a sample property in the community.... ![]() ....specific details of recent sales in the community.... ![]() ....and much more, including properties currently for sale, and a neighborhood map. But that's not all! I am also releasing several tools I have built in Microsoft Excel to aid in your analysis of potential rental properties, including a mortgage calculator and two different investment analysis worksheets. Check out these analysis tools here. Whether you are preparing to buy your first rental property, or your 10th, I hope that this new website will serve as a helpful resource to you. If you have suggestions for further additions to the site please let me, and if you would like my assistance in evaluating and purchasing investment properties in Harrisonburg, please email me (scott@HarrisonburgHousingToday.com) to set up a time for a preliminary consultation. | |
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Declines in housing inventory much more severe in City than County |
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![]() As Karl pointed out, the declines in inventory levels over the past few years have been more significant in the City than in the County. And as Charles pointed out, this could be a great time for someone to start building some spec homes. ![]() If you are a builder, and are considering building some spec homes, let's chat about what would work best in the current market -- and where you might build it. | |
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Inventory levels are at the lowest levels we have seen in at least seven years |
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![]() If you think there aren't many homes for sale, it's because there aren't many homes for sale. The graph above shows how inventory levels in our area have shifted downward over the past seven years. Looking at inventory levels at the start of each August, here's what we find....
Past years indicate that we will likely see inventory levels continue to decline over the next five to six months. | |
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Mortgage interest rates are likely to increase soon, but not now, per minutes of Federal Reserve meeting |
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![]() Over the past three years (shown above) interest rates have fallen into three categories....
As you can see above, interest rates have spent the most time in the ABSURDLY LOW category over the past years -- and apparently interest rates will be going up "soon, but not now" per a Washington Post article about the recent Federal Reserve meeting.... The Federal Reserve made few waves when its top brass met in Washington last month for their regular policy-setting meeting. Its target interest rate — pegged at zero since the financial crisis — remained unchanged, and the central bank's official statement offered few clues of when it might rise.Read more in the full Washington Post article, This is how the Federal Reserve is preparing to raise interest rates. | |
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Sellers are only negotiating an average of 3 percent off of their list price these days |
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![]() Sellers, on average, are willing to take 3% off of their list price -- based on a historical analysis of how much sellers have negotiated in recent years. That being said.... 1) This ratio (homes sell for 97% of their list price) is a comparison of the sales price to the LAST list price. Sometimes it takes a price reduction or two until a list price is seen to be at a reasonable place by buyers to elicit an offer that then gets negotiated to that average of 97% of the final list price. 2) On a related note, a seller can't price their home wherever they'd like and then expect it will sell for 97% of that list price. A home with a market value of $300K will not sell for $388K if you list at $400K. 3) Buyers should not necessarily expect to be able to negotiate 10% off of a list price. Sometimes it happens -- a seller is extra motivated, a list price is way too high, etc. -- but it is not a common occurrence. 4) Sellers should not expect to sell for 100% of their list price. If you lower your list price from $315K to $300K, buyers will certainly take note of the recent price reduction, but they won't necessarily be ready to pay you 100% of your new list price -- unless you have lowered the list price to the point where it is right at, or just below market value. If you're getting ready to put your house on the market this Fall, let's start talking now about pricing strategies to best prepare you for what a buyer might offer you for your house in the current market. | |
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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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