Townhouses
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Some Townhomes Owned By Investors Are Being Offered For Sale. Will They Be Purchased By Owner Occupants Or Other Investors? |
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 Lots and lots of townhouses in and near Harrisonburg are owned by investors. I know, that's a very exact and precise figure. ;-) Anecdotally, I've seen some of those townhouses hitting the market for sale over the past two months. Not an overwhelming number... more than five but fewer than ten. My curiosity is in whether these investor owned townhouses will remain investor owned -- if another investor will buy them -- or if an owner occupant will purchase them. I work with plenty of investor clients, and so in some sense I'm rooting for them, if any of them want to buy another investment property. But... I think I'm rooting for the would-be owner occupants just a smidge more than the investors. Buying a home, moving in, investing in that home and in a neighborhood, having a sense of stability and permanence are all things that help build the Harrisonburg community that we know and love. If or as folks decide that they would like Harrisonburg to be their home for the long term, I'd be delighted for them to be able to *buy* a home and not just have to *rent* a home -- IF their financial situation points to that being a wise and sustainable decision. Anyhoo... only time will tell whether these (few) recent investor owned townhouses will be purchased by other investors or by owner occupants... but I'm a big fan of homeownership, so here's hoping that at least some of them will be purchased by those who plan to live in them and make Harrisonburg their home for years to come. | |
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Update On City Of Harrisonburg Townhouse Market |
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 The median sales price of city townhouses has increased from $220,000 last year to $235,000 this year. The graph above shows the median sales price in several of Harrisonburg's townhouse communities.
What’s Next For The Harrisonburg Townhouse Market? CONTINUED LOW SALES LEVELS - After 163 city townhouse sales in 2022 we have only seen 90 sales thus far in 2023. If we add on the seven under contract townhouses, we might get to 97 city townhouse sales in 2023 which would be a 40% decline in the number of townhouses sold in 2023. I expect we will see a similar number of city townhouse sales in 2024 unless we see a builder breaking ground on a new townhouse community in the city. HIGHER PRICES THAN LAST YEAR - The median sales price of city townhouses has risen 7% over the past year, despite much higher mortgage interest rates. I expect that we will continue to see increases in the median sales price of city townhouses - but those price increases might slow in 2024. WILL YOU SELL YOUR TOWNHOUSE THIS YEAR? - If you are thinking about selling your townhouse we should start by looking a bit more closely at the specific townhouse sales in your neighborhood - and then we should evaluate any improvements you might make to your townhouse before selling it. TOUCH BASE ANYTIME - If I can be of any help - with selling your townhouse, answering questions about the market, etc. - feel free to reach out anytime. | |
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Why Has The Median Sales Price Of Attached Homes Increased 20% In A Year? |
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 Spoiler alert - I have no concrete answers to the question above. :-) The median sales price of attached homes (duplexes, townhomes, condos) was $247,565 in 2022. Thus far in 2023, the median sales price is $296,990. This marks a 20% increase in the median sales price of attached homes over the past year. How could this be? The overall median sales price in our market (detached homes and attached homes) has risen 10% in that same timeframe -- so why has the median sales price of attached homes risen 20% rather than 10%? My theory - which I have now proven to be wrong - was that the median sales price was rising because we were seeing more new attached homes selling in 2023 at higher prices, causing the median sales price to rise. Certainly, if 20% of attached homes were new homes in 2022 and 40% were new homes in 2023 then it would not be surprising to see the median sales price rise since the prices of new homes are almost always higher than the prices of resale homes. But, here's what the data actually shows...  So, again, comparing attached home sales in 2022 and 2023... 2022 - median sales price of $247,565 with 40% being new homes 2023 - median sales price of $296,990 with 34% being new homes So, it seems we can't necessarily attribute the unexpectedly high (20%) increase in the median sales price of attached homes in 2023 to a larger portion of those home sales being new homes. Darn. Theory #1 has been refuted. Anyone have any other theories? | |
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Leighton Place, To Include 150 Townhomes And 180 Apartments Proposed On Stone Spring Road Across From Preston Lake |
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 We may soon see another residential development near the intersection of Stone Spring Road and Spotswood Trail. Two parcels totaling 25.5 acres are currently zoned A-2 but a developer is proposing that they be rezoned R-5 to allow for the construction of 330 residential units to include 150 townhouses and 180 one and two bedroom apartments. Here's where the new development is being proposed...  The rezoning application and other documents prepared by the County can be viewed here. This new proposed development -- Leighton Place -- is immediately adjacent to the 280 unit rental community, Stone Ridge Crossing, that was approved last month by the Board of Supervisors. | |
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Upscale Townhouses And A Playground (!!) Under Construction At Congers Creek |
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 If you've drive by Congers Creek lately, on Boyers Road across from Sentara RMH Medical Center, you may have noticed lots of townhouses under construction. But if you drive a bit further back into this new townhome community, you'll find a playground under construction! This playground is the latest amenity at Congers Creek, beyond those in Phase One including a pavilion, basketball court, grills and a fire pit. Below is an updated aerial photo of the townhomes being built in Phase Two, as well as a rendering of the design for the playground that is currently being built.   Find out more about currently available townhouses at Congers Creek here. | |
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City Townhouse Sales Prices Increase 34% Over Four Years |
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 Townhouse values in the City of Harrisonburg have certainly increased rather quickly over the past few years... As shown above, we have seen a 4% to 11% increase in median sales prices for each of the past four years. There has been an overall 34% increase in the median sales price since 2018. If you happened to buy a townhouse a few years ago, you'll likely be in great shape if you're selling now or soon! Also helping this segment of our local housing market is that most new townhouses are now in the $250K+ price range. | |
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There Is Currently Only ONE Townhouse For Sale in the City of Harrisonburg!? |
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 Yes, it can be done... ...you can buy a townhouse in the City of Harrisonburg... ...but it's much more difficult now than it was in the past! Townhouses Sales in 2021 in the City of Harrisonburg = 195 Townhouses Under Contract Today in the City of Harrisonburg = 16 Townhouses Currently Available For Sale in the City of Harrisonburg = 1 I should also point out that the median sales price of townhouses in the City of Harrisonburg in 2021 was $194,900 -- up from $185,000 in 2020 -- and up from $166,000 in 2019. So, yes, you can buy a townhouse in the City of Harrisonburg, but you'll need to be ready to act quickly when one hits the market as they don't stick around long. The median "days on market" for the 195 townhomes sold in 2021 was only four days! | |
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95 New Townhouses Proposed At Massanutten Resort |
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 view a larger image here Great Easter Resort Corporation, the developer at Massanutten Resort, has requested a rezoning of a parcel of land just under 10 acres to allow for 95 townhouses to be built near the intersection of Bloomer Springs Road and Resort Drive. Here's the proposed site layout...  view a larger image here Find out more about this proposal by downloading the full rezoning request packet here. | |
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Perhaps This Would Be A Good Time To Sell Your Taylor Spring Townhome? |
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 If you own a townhome in the Taylor Spring neighborhood -- or actually, in most townhome neighborhoods -- this could be a fantastic time to sell it. You have likely seen a $21K increase in its value over the past year, and a $34K increase in value over the past two years and a $40K increase in value over the past three years! Wow! Buyers are paying more (and more and more) for townhomes these days -- which can make it an ideal time to sell such a property if you own one. With two important caveats, of course... [1] If you own a Taylor Spring townhome and live in it, we'll need to make sure we have a plan in place for where you will buy after you sell. [2] If you own a Taylor Spring townhome and are renting it out, you'll want to consider the tax consequences of selling the property and whether you would want to roll the proceeds into the purchase of a different property. Townhomes have seen steady increases in their market value over the past few years, so if you own one and are thinking of selling it, this could be an ideal time to move forward with that plan! You can explore Taylor Spring townhome value trends here and explore value trends in most of our area's townhome communities here. | |
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Townhouses in Phase 2 of The Townes at Congers Creek Now Available For Purchase |
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 The Townes at Congers Creek is a new townhouse development located in Rockingham County, across Boyers Road from Sentara RMH Medical Center. The first phase of the development included 26 townhouses, all of which are under contract or sold. A second phase of townhouses is now under development that will include 133 more townhouses in a few different styles...  view a larger plat here The three styles of townhouses will include...
You can find pricing, availability, a site plan, standard features, available upgrades and more at CongersCreek.com. The first (10) townhouses at Congers Creek hit the market yesterday and it seems likely that (5) of those will be under contract by the end of the weekend. You can also email me with any questions you might have, as I am the Realtor representing the builder/developer. | |
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22 Townhouses Proposed For Suter Street In Harrisonburg |
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 A property owner on Suter Street, in the City of Harrisonburg, is proposing to build 22 townhouses on a 2.03 acre parcel of land zoned R-2. The City of Harrisonburg Planning Commission will review this requested rezoning (R-2 to R-8C) on August 11, 2021. City staff recommends that this rezoning be approved. The owner of the property, Philip Yutzy, purchased the two acre tract of land and wants to develop the property into "an attractive family oriented neighborhood" with primarily duplexes and one triplex. The owner sites a lack of "affordable housing" and they plan to address it by building these townhomes to be priced between $200K and $270K. They anticipate that families earning $40K - $60K would be able to purchase these homes. Read all about this proposal in the City Planning Commission's packet here. | |
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Yes, We Need More Townhouses To Be Built! |
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 When you see more townhouses being built -- or when you see plans being discussed for more townhouses to be built -- you might be thinking... What!? More townhouses!? Don't we have enough townhouses!? But if you ask nearly any local Realtor who has represented the seller of a townhouse in or near Harrisonburg in 2021 they will tell you... Yes, We Need More Townhouses To Be Built! Whenever a resale townhouse comes on the market it is almost always overwhelmed with showings in the first few days on the market -- and then the offers start coming in, fast and furious. Buyers are offering over asking price. Buyers are waiving inspection contingencies. Buyers are desperate to find a townhouse to buy. But yet, when there are 12 offers on a townhouse, the seller is only able to accept one of those offers. As a result, there are still 11 would-be townhouse buyers circling the market waiting on that next townhouse to become available. As quickly becomes evident, demand for townhouses FAR exceeds supply -- so... Yes, More Townhouses Need To Be Built! If I dialed in a bit further on this issue, I suppose I should point out that...
So, while it would be great to continue to see options over $250K, it would also be amazing to see new townhouse options much closer to $200K. | |
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29 More Townhouses Likely Coming To Vine Street |
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 view a larger map here The Harrisonburg Planning Commission recommended the approval of the rezoning of a 2.25 acre parcel on Vine Street to allow for 29 townhouses to be built as per the proposed site plan below...  view a larger site plan here This is one of the many new residential developments in Harrisonburg and Rockingham County that are under construction or in planning phases as outlined here. | |
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Tips For Would Be Townhouse Buyers In A SUPER Competitive Market |
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 Townhouses are selling QUICKLY in and around Harrisonburg. It is not uncommon for reasonably priced townhouses to have 5 to 10 offers within 48 hours of being listed for sale.
I suppose one critical aspect that I did not list above would be to hire a buyer's agent to represent you in finding, pursuing and purchasing your townhome. I'd suggest you select someone who is highly responsive, professional and knowledgeable about the market. Happy townhouse shopping! | |
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This Could Be A Good Time To Sell A Townhouse Under $200K, Built Since 2000, In The City of Harrisonburg |
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 If you have a townhouse to sell in the City of Harrisonburg, built in the past 20 years, that would be priced under $200K, this may be an excellent time to sell it. Here's why... Over the past three months, there have been (15) sales of such townhouses -- so, around (5) buyers per month are buying townhouses built in the past 20 years, priced under $200K in the City of Harrisonburg. Not surprisingly, then, there are (9) such townhouses currently under contract. But wait, what!? There is only (1) single solitary townhouse for sale in the City of Harrisonburg under $200K right now that was built in the past 20 years. So -- if you own a townhome in Avalon Woods, Beacon Hill, Harmony Heights, Liberty Square, etc. -- this might be an excellent time to sell. Email me to chat about your townhouse and its value in the current market. | |
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Finding Townhouses For Sale In and Around Harrisonburg |
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 It can be hard to find a townhouse for sale these days -- many of them are under contract within days or even hours of being listed for sale. So if you are a buyer looking to purchase a townhouse in or near Harrisonburg -- you should start thinking about the process sooner rather than later. Some first steps...
And here are a few resources you might find helpful...
Let me know if I can be of assistance to you as you start the search for the townhouse you hope to purchase in or around Harrisonburg. | |
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Tips For Townhouse Buyers In A Competitive Market |
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 Over the past few months I have listed several townhouses for sale that went under contract quickly after a LOT of showings in a very short timeframe. For one such recent property there were six offers within 48 hours. One of the things that struck me as we worked through that process was that there were five other buyers who really (!!) wanted to buy that townhouse and couldn't -- because there was only one townhouse to be purchased. As such, I feel bad for townhouse buyers in the current market. Townhouse buyers have a LOT of competition and I can imagine a single buyer making an offer on multiple townhouses and missing out every time. So, a few tips for would be townhome buyers...
I suppose one critical aspect that I did not list above would be to hire a buyer's agent to represent you in finding, pursuing and purchasing your townhome. I'd suggest you select someone who is highly responsive, professional and knowledgeable about the market. Happy townhouse shopping! (Or may it just not be too unbearably difficult, frustrating and tiring.) | |
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City Townhouses Are Selling QUICKLY! |
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 Townhouses in the City of Harrisonburg are selling QUICKLY! The "Days On Market" referenced above is the number of days between when a property is listed for sale and when it goes under contract. Just three years ago, the median days on market was 24 days - which means that half of the townhouses that sold went under contract in fewer than 24 days, and half took longer than 24 days. But now, the median days on market has dropped down to just FIVE days in 2020. Oftentimes, sellers of townhouses who want to buy a single family home are worried that they won't be able to sell their townhouse quickly enough to then make an offer on the house they want to purchase - this should be at least somewhat less of a concern now given the speed at which townhouses are going under contract! | |
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Should You List Your Rental Property For Sale For One Month Between Tenants? |
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 Depending on your short and long term financial goals - yes, it may be an excellent idea in the current market to do just that - list your rental property for sale for one month between tenants... In a recent conversation with the owner of a rental property, they were reflecting on the fact that after a tenant recently vacated their rental property (a townhouse) they were making quite a few updates and improvements to the townhouse based on some aging components and finishes in the property. They realized that the townhouse would be in better shape than it had been for years -- and that the condition would likely start to deteriorate (even if just a bit) as soon as they moved tenants back in. So, they wondered whether they should go ahead and just sell the townhouse instead of renting it again -- since it would be in great shape. But they lamented the fact that they'd need to keep it off the rental market for several months to see if it would sell at a price that would suit their financial goals - in other words, a sales price whereby it would make more sense for them to sell it than to continue to rent it. Here are a few thoughts I shared with this owner of an investment property...
So - here's an idea, if you own an investment property and you are about to have a tenant move out and you are about to make some improvements to the townhouse... Move the tenant out. Make the improvements. List the townhouse for sale for one month at a price for which you'd be happy to sell instead of continuing to rent the property -- so long as that value is generally in line with recent sales prices for similar townhouses. With this concept you don't have to commit to listing the property for six months, missing out on rental income, etc. -- but you can quickly determine if you could sell the townhouse while it is at its peak (from a condition perspective) at a price that would make it worthwhile for you to do so. OK - that was a lot. I'd be happy to talk it all through with you as well - in person, by email, by phone, etc. If you own a rental property and *might* want to sell it soon - be in touch (scott@hhtdy.com or 540-578-0102) and let's talk strategy... | |
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32 Townhouses To Be Built on Boyers Road |
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 Randy Cosner is planning to build 32 townhouses on 2.741 acres on Boyers Road as shown above. Below is the intended site layout, which includes common areas with a fenced tot lot playground and a picnic area with benches and a fire pit.  The townhouses are to be built similar to the rendering below. Of note -- it is not clear whether these townhouses will be sold to individual buyers, sold to investors to then be rented, or retained by the builder to be rented. The townhouses pictured below are located on Leslie Court, located off of Vine Street, near its intersection with North Main Street. All 24 townhouses built on Leslie Court were purchased by investors (a total of perhaps four entities) and all 24 townhouses are now rented.  If you have driven by this location (Boyers Road) anytime recently you will have seen that all of the trees have cleared to prepare for construction. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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