The Harrisonburg Housing Market Report for 2010 is here! Thanks to Karl for the good work.
2010 is now behind us. As we look at the year and ask “How did the local real estate market do?”, our initial response is probably something like “Not too well!”. Local Realtors will tell you 2010 was a tough year, one in which Buyers, Sellers and agents had to go to (sometimes) extraordinary lengths to complete a deal. It was a year in which distressed properties exerted a heavy influence on our market and lenders continued in their attempts to refine their Short Sale and Foreclosure processes. 2010 was a year in which, despite falling prices, historically low interest rates and plentiful inventory, Buyers seemed reluctant to buy.
However, 2010 also appears to have been a continuation of the slow recovery of the housing market in our area, which bottomed out in the winter of 2008 – 2009. Make no mistake, the market is still slow. In fact, for the 5th consecutive year fewer homes were sold in our market than in the year before. The silver lining in this cloud is that the rate of decline is slowing. Essentially, 2010 was “less bad” (in terms of the slowdown in sales) than 2009 and 2009 was “less bad” than 2008. Given this trend it seems reasonable to expect 2011 could be equal to or slightly better than 2010 for residential sales.
As far as December goes, it was a good month for sales activity, with the most sales in any single month since June. Interestingly, the last four Decembers have recorded very similar monthly sales figures, regardless of what the market had been like that year. Average days on the market for sold properties continues to creep upward and is now at 201 days for all homes sold in 2010.
Caption: The black line shows closed transactions in 2010 being the highest since June, but that those six months had fewer closed summer and fall transactions than any year since 2006. (Source: Harrisonburg-Rockingham Association of REALTORS Multiple Listing Service, data accessed Jan 7, 2010)
Average and Median prices appear to have steadied during the second half of 2010, (a bit of a surprise given the market conditions) with most of the modest decline for the year occurring in the fist few months of 2010. The one and three year changes in the average and median prices of sold homes as of December 31, 2010 are:
- Three year change: Average Price down -11.18%, Median Price down -10.75%
- One year change: Average Price down -2.14%, Median Price down -2.32%
We expect the local real estate market to continue to improve slowly during 2011 as Buyers, Sellers, pricing and inventory adjust to move our market into balance.
Report prepared by Karl Waizecker of Kline May Realty (See blog) Download: Harrisonburg Housing Market Report December 2010 (PDF)