he first quarter of 2012 finished well for the Harrisonburg/Rockingham County real estate market. For the first time since 2007, residential sales in the first quarter of the year exceeded sales in the first quarter of the prior year - a great start for 2012!
Residential sales showed a typical seasonal increase in March, with 85 sales recorded by the Harrisonburg-Rockingham Association of REALTORS® Multiple Listing Service (HRAR MLS) compared to 69 residential sales each in January and February. Buyer activity remains strong, with the number of properties “Under Contract” in the HRAR MLS (233) and the number that went Under Contract in March (126!) indicating April and May will be strong months as well.
Additional good news for Sellers is that inventory, although increasing, in considerably lower than in prior years and combined with increased buyer activity may finally stop the downward slide in home prices. Here are the latest changes to average and median sales price throughout the Harrisonburg-Rockingham Association of Realtors Multiple Listing Service:
Three year change: Average Price down -14.33%, Median Price down -14.29%
One year change: Average Price down -4.98%, Median Price down -6.74%
Average prices fell 6.5% in calendar year 2011, so a drop of 4.98% in the past 12 months may be an indicator the overall price decline is ending in our area. It will take much longer to tell for sure, but this is an important trend to monitor.
While the uptick in buyer activity and closings may be seasonal, or may be attributable to a very mild Winter and early Spring…it also may indicate buyers are realizing the fantastic buying conditions in this market and sellers are becoming more realistic with their pricing strategies. In truth, all of these are factors in the momentum which seems to be building in our market.
Click here to view or download our Market Activity Charts for March 2012.
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