Relocating
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Different Local Real Estate Markets Are Performing, Unsurprisingly, Differently |
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 If you are relocating from a small rural area (or from a much larger city) to Harrisonburg, you are likely to experience different market dynamics in the two local markets. If you are relocating from Harrisonburg to a much larger city (or to a much more rural area) you are likely to experience different market dynamics in the two local markets. In conversations with folks moving to or from larger markets, I have heard anecdotes of...
Those sort of (extreme!) market dynamics are not currently being seen very frequently in Harrisonburg... but every local market is different. Consult an active, professional, local Realtor in the area where you are relocating to or from in order to understand current market dynamics in that market. Knowing how the market is performing will help you set proper expectations relative to potential offer terms and contingencies. | |
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Moving to Harrisonburg, From Out of Town, and Buying A House Can Be.... |
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 Many people move to Harrisonburg, Virginia (or the surrounding area) each year and in 2021 many of those individuals and families have found it challenging to find a home to purchase. Why, you might ask? It's an "inventory at any given time" sort of problem. As I have mentioned quite a few times lately, more homes have sold this year than last... Jan - Nov 2020 = 1,385 home sales Jan - Nov 2021 = 1,525 home sales (12% more than in 2020) But most homes are under under contract less than a week after having hit the market for sale. The median "days on market" of homes sold in 2021 is a mere five days! So, most out of town buyers can identify plenty of homes that they'd would like to view -- and possibly buy -- in an extended timeframe of a month (for example) but if they are in Harrisonburg for a weekend for a home buying visit they are likely to see very, very few options of homes that they can tour and consider purchasing. So, what then, is the out of town (but moving into town) buyer to do? Idea #1 - Move first, buy later. Perhaps you can put most of your belongings into storage temporarily, and live with a friend or family member in Harrisonburg for a few months while you house hunt, viewing new listings in person shortly after they are listed for sale, and potentially making an offer on such a new listing and purchasing a home. Idea #2 - A Local Home Buying Ambassador Perhaps you have a family member living in Harrisonburg, or a long time friend, who can go see new listings on your behalf as soon as they hit the market to help you decide whether you want to make an offer on such a new listing even without having seen it in person. Idea #3 - Rent For A Year This is a variant of the first idea, but some would be home buyers relocating to this area resign themselves to renting a property for a year to get into the area and start viewing new listings in person so that they can take their time to find the right home to purchase in the Harrisonburg area. Idea #4 - FaceTime or Zoom If you don't have a local home buying ambassador to send along in your stead to view new listings, I am happy to walk you through new listings virtually, via FaceTime or Zoom. It's certainly not the same as seeing a house in person, but it can provide much more context for you as you consider a home purchase from afar. If you are moving to Harrisonburg in 2022, from out of town (or out of state), start giving some thought to how you will approach the remote home buying experience. I'd love to tell you that you'll be successful in just scheduling a weekend to come see a bunch of homes and make a decision -- but it seems unlikely that we are going to see inventory levels meaningfully rise in 2022, so you will likely need to consider one or several of the ideas above. | |
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Kid Heads To College In Harrisonburg, Graduates, Stays, Parents Relocate Too |
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 It's my story. It's my wife's story. It seems to be an ever more frequent story these days. I left Maryland back in 1996 to attend JMU. I graduated in 2000 and again in 2002 - got married in 2002 (19 years ago yesterday!) and Shaena and I decided to stay in Harrisonburg. Some years later both of my sisters (though not my brother) were also in Harrisonburg and it wasn't too much of a surprise that my parents relocated to Harrisonburg after my dad retired. With Shaena and her sister both living in Harrisonburg when their parents retired, it also wasn't too much of a surprise that they relocated to Harrisonburg after retiring. And so it seems to go for lots of folks these days. I frequently find myself working with home buyers who are the parents of JMU or EMU graduates who are either... [1] Buying a second home in Harrisonburg to be able to spend more time in Harrisonburg with their kids and grand kids. [2] Relocating to Harrisonburg after retiring to be able to spend more time in Harrisonburg with their kids and grand kids. ...and a newer trend... [3] Relocating to Harrisonburg before retiring -- because Covid created an opportunity for them to work remotely -- to be able to spend more time in Harrisonburg with their kids and grand kids. So, some part of the continuing strength of our local real estate market is the double impact of a local college student deciding to stay in this area after graduation. They become Harrisonburg area residents -- and there then ends up being a decent chance that their parents may end up being Harrisonburg area residents at some point as well! P.S. I can't understate the impact of the grandkids. Once the grandkids are on the scene, for some reason the grandparents are even more interested in considering relocating. :-) | |
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Why Is Unmet Home Buyer Demand So High In Harrisonburg? |
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 Earlier this week I was chatting with some friends and clients who relocated out of Harrisonburg (out of state) nearly a decade ago. They are now looking to move back to Harrisonburg and are accurately observing that our local housing market is at a drastically different point now than it was a decade (+/-) ago when they left. The most pressing issue at hand for them, as soon-to-be buyers in this market, is the extraordinary high level of unmet home buyer demand. And so we pondered aloud why in the world buyer demand is so high in Harrisonburg. Here's my overly condensed thesis...
Put differently, with some make believe numbers, to illustrate the point... 2010 = population of 50,000 2020 = population of 55,000 Increased population = 5,000 5000 newly built housing options between 2010 and 2020:
The problem, then, is that many more than 500 (10%) of the new population want to buy single family detached homes -- but that is not what has been built over the past decade. Further exacerbating the problem is that plenty of the already existing 50,000 population also wants to move up to a single family detached home, putting more and more pressure on that segment of the market. So - the population is increasing and housing options are increasing, but the housing that is being created is not matching what the expanding population desires. Why!? Basically, it's all about profitability as a developer. For all the ways to develop a 10 acre parcel of land, this is a rough approximation of the ranking of their potential profitability...
At this point, most land being developed is not being developed for single family homes because that is not the most profitable way to develop the land. So long as student housing keeps being rented as soon as it is built, and non-student apartments keep being rented as soon as they are built, and townhouses keep being rented as soon as they are built, and townhouses for sale keep being bought before they are built -- it remains relatively unlikely that land in or close to Harrisonburg will be developed for single family homes. I am now accepting recommendations for more cheery perspectives to write about next week. Call. Text. Email. Help! ;-) | |
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Despite Slow Sales, Home Values Remain Relatively Stable in Harrisonburg and Rockingham County |
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Read on for several highlights of the November 2010 Harrisonburg and Rockingham County Real Estate Market Report. Or click here to view the PDF.  Despite early gains in 2010 (particularly in April and June) home sales have stagnated over the past several months. July, August, September and October of 2010 have been the slowest such months during the past five years. Despite these low sales figures, however, year-to-date sales are only 4% below last year's sales.  Late 2009 through mid 2010 showed some promise. After several years of declining home sales (pace, not values) it seemed that our local market had finally turned around. Now looking back, that increase in sales pace may have been largely related to the home buyer tax credit, as the pace of sales is now on the decline yet again. What surprises lie in store for us in 2011?  As demand falls, prices should fall --- isn't that what I learned back in my economics class at JMU? Not so in the Harrisonburg and Rockingham housing market!?! Fewer and fewer buyers have been present in the market over the past six years (demand fell) but prices have not fallen in the way that that shift in demand would suggest. Calling all economists....how can we explain this?  Click the image above (or here) to review the entire November 2010 Harrisonburg and Rockingham County Real Estate Market Report, complete with an all new Executive Summary this month. If you have questions about this report, or if I can be of assistance 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. | |
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Relocating to Harrisonburg? Set up a doctor's appointment! |
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 Like many in Harrisonburg and Rockingham County, my sister and her family had the misfortune of becoming quite sick two weeks ago --- with bronchitis. This happens --- but it became an issue --- because she moved to the area a few months ago.Almost all doctors in this area (it seems) won't see a patient unless they are a current patient of that medical practice. So, if you have recently moved to Harrisonburg or the surrounding area, you ought to schedule a "meet and greet" appointment with your physician of choice ASAP. It's actually rather humorous --- it's not too much of a problem to find a doctor that is accepting new patients, but you can't be a new patient until you have had an appointment with the doctor, completed the appropriate paperwork, etc. So --- if you are new to this area, don't wait until you are sick to think about who your doctor will be --- otherwise, you'll be headed to Rockingham Memorial Hospital, as my sister did. | |
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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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