The July 2013 Market Report is in, and the news is good! If you are thinking about buying or selling, contact the guys today (Derik – 540.246.2118 and Jeremy – 540.421.8293). If e-mail is better, send them a note at email@example.com.
And onto the Market Report, which is written every month by Karl, Kline May Realty’s Principal Broker and Jon, the company’s Director of Marketing and IT.
When campaigning for the 1920 Presidential election Warren G. Harding famously promised a “return to normalcy”, meaning Americans would return to the life they knew before World War I. While the real estate downturn of the past several years does not compare to a World War, I think the same phrase is an appropriate description of what is happening in our local real estate market – we are seeing the return to normalcy. Compared to the past 5 years, not only are more homes selling but they are selling more quickly and for higher prices.
During the month of July, 108 homes sold in Harrisonburg and Rockingham County, representing the highest monthly total of 2013. More importantly than the single month’s total, the trend for this year has been significantly higher than in any of the past five years. Equally encouraging is the number of homes on which Buyers placed contracts in July (107), indicating the strong Buyer activity is continuing and translating into more successful closings for the balance of this year.
Additionally, at long last we see the 12-month price trend beginning to rise. While prices are still 5 – 6 % below where they were three years ago, they have increased over the past year and should continue to increase (probably at an increasing rate) over the next 12 – 18 months.
The one and three year price trends are:
Three year change: Average Price down -5.47%, Median Price down -4.32%
One year change: Average Price up +2.41%, Median Price up +0.57%
Lastly, we are seeing the length of times it takes homes to sell beginning to decrease. Again, this is a 12-month trend, so it takes fairly significant differences to move the number. Our average Days on Market (12 months sales) dropped to 206 days, slightly less than one year ago. This number will come down slowly as homes which have been on the market for an extended period of time work their way out of the system. One very encouraging statistic is so far in 2013, 34% of homes sold have closed within 90 days of being listed for sale, reinforcing the idea that if a home is properly priced and presented well it will sell quickly!
Click here to view or download our Market Activity Charts for July 2013.