While the pace of home sales continues to be low compared to 2007, home prices continue to increase at a modest rate.  Both median and average home sales prices in July 2008 showed an increase over July 2007 by 2% and 4% respectively.  When examining the year to date (1/1/2008-7/31/2008 versus 1/1/2007-7/31/2007), both median and average home sales prices in 2008 showed an increase over 2007 by 4% and <1% respectively.

Despite a slower rate of home sales, buyers are committing to properties this year at a similar pace as in 2007. During July 2008, buyers ratified contracts on 94 properties, as opposed to 98 properties in July 2007 -- this is only a 4% year over year decline.



Following the seasonal trend of the past several years, July 2008 home sales were slower than in June 2007.  In July 2008, 90 buyers closed on homes in Harrisonburg and Rockingham County, as opposed to the 109 home sales in June 2008.  If seasonal trends of the past several years continue, August home sales will likely be slightly higher than July 2008 sales figures.



Absorption rates remained relatively unchanged over the past month.  The number of months of supply of homes for sale in Harrisonburg and Rockingham County remained relatively unchanged as August 2008 begins, as compared to the start of July 2008.  Lower price ranges continue to have show healthier inventory levels as related to buyer demand.