Original Harrisonburg/Rockingham Real Estate Market Report posted at KaiDegner.com
The Harrisonburg/Rockingham real estate market report is showing a continued decrease in prices and an increase in average days on market for homes listed for sale. It remains a buyer's market!
Figure 1: The chart shows an increase in 2009 and 2010 similarly timed with April in 2011. (Source: Harrisonburg -Rockingham Association of REALTORS Multiple Listing Service, 5/09/2011)
Figure 1 shows a spike in the average and median prices of homes that sold in April 2011. Initially, that might suggest that prices are going up and that the market is turning around. However, the previous years show a similar spike in prices at the same time of the year, following by a decline in the following few months.
Figure 2: The last 12 months' average and median prices for homes in the Harrisonburg/Rockingham area continue to decline, though not as steeply as the national average. It remains a buyer's market! (Source: Harrisonburg -Rockingham Association of REALTORS Multiple Listing Service, 5/09/2011)
Figure 2 is a better clue for the overall average price of Harrisonburg/Rockingham real estate. This chart averages the average and median price from the previous 12 months. As is shown, the rolling 12-month Harrisonburg/Rockingham real estate prices continue a decent - meaning homes continue to be more affordable for people looking to buy or invest.
What does this mean for sellers?
For anyone with property currently listed for sale, they should pay attention to the declining prices and consider how competitively priced their home is. The average number of days residential real estate is on the market before it sells is 207 days - more than 6 months (Figure 3).
Figure 3: The average number of days on market for real estate listed for sale in the Harrisonburg/Rockingham area continued to increase in April 2011. Good pricing and marketing can make any single property an exception to this average. April 2011 showed an apparent seasonal spike in the Harrisonburg/Rockingham real estate market.
These charts are only overall averages, so any home currently on the market should be compared with data specific to its category (price, bathrooms, bedrooms, etc). For example, home below $150,000 are selling faster than homes over $300,000 - but a home in either category could sell much faster if it is priced competitively, it shows well, and it is marketed professionally. I recently listed a townhome that met these goals and was under contract in under two weeks - so success stories are still possible! The bottom line is this for sellers: be prepared to price competitively to sell your home in this market.
What does this mean for buyers?
Buyers have quite an opportunity in the Harrisonburg/Rockingham real estate market. The decline in prices make the average home more affordable. Interest rates remain near historic lows. Home-buyer incentives such as FHA loans require as little as 3.5% as a down payment. Many sellers are willing to pay some closing costs as an incentive to buy the property.
It is very likely a person could buy a home over $150,000 and move in for less than $5,000. Indeed, I recently helped a first-time home buyer purchase a foreclosed brand new townhome for ZERO down payment with a USDA loan - and due to the closing cost credit, he actually received money BACK at the closing table because he gave an earnest money deposit at the time of the offer!
If you are interested in buying a home or investment, or would like an analysis specific to your home, please contact me, Kai Degner, Harrisonburg/Rockingham real estate agent at kai.degner [at] klinemay.com or (540) 442-0316. Of course, feel free to use my custom home search tool at SearchShenandoah.com.
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