By: Jeremy Litwiller
While we have all said our good-byes to 2013 in various ways and are hopefully welcoming 2014 in with excitement and optimism, it can be helpful to briefly ponder the year that has passed for signs of what’s to come. In the Harrisonburg and Rockingham County Real Estate Market, it feels good to be able to report some positive signs for next year.
As we look through our end-of-the-year Real Estate Market Report, the trends are certainly encouraging. I won’t go into all the details, but here are some high points worth considering and here is a link to the full report.
Our total units sold for the year hit a 5 year high in 2013 with just over 1,000 properties sold…..that’s our best number since 2007! Additionally, we saw our best year-over-year increase in units sold since 2007, with a 17% increase in sold volume as compared to 2012.
With more homes being sold, our inventory levels and Days On Market have both decreased in Rockingham County and the City of Harrisonburg. When we average the whole market, we have roughly a six month supply of properties currently listed for sale. According to most experts, a six month supply is a good indicator of a healthy market.
If we apply the simple law of supply and demand, it will lead us to our next bit of good news…..we have finally seen the return of appreciation in our local market. Before you get too excited, it will likely be a few years until we see prices return to the levels of 2006-2007. However, with an average price increase of roughly 3%, this is the first year in the last five that we haven’t seen prices go down……in my humble opinion, that’s reason to celebrate!!
While no one can say for sure what 2014 will bring, we anticipate a very active and very competitive market. Other areas of the country that are usually a bit ahead of us have already seen strong buyer competition, increased appreciation, and shorter sales cycles. Low inventory levels and strong demand locally point to it being a great time to sell a home or other property here in Harrisonburg and Rockingham County.
If you are considering the sale of your home, now is the best time we’ve had in 5 years to make it happen. We need more homes, so please let us know if you would like a free market analysis and/or any advice as you weigh your options. The Valley Roots Team would appreciate the opportunity to help you with your next real estate transaction.