Local Home Prices Increase 32% In Five Years

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Local Home Prices Increase 32% In Five Years
By Scott Rogers • January 8, 2021 Filed In: analysis, market
The median sales price five years ago (2015) was $185,000 in Harrisonburg and Rockingham County. Last year, five years later, it was $244,900. That's a 32% increase in the median sales price over five years! A variety of thoughts come to mind... First, a happy thought, for some. It has certainly been a great time to be a homeowner. If you have owned a home for the past five years the value of that home has likely increased quite a bit. That value certainly isn't guaranteed to always go up -- and it definitely won't usually go up this quickly -- but this has been a good five years during which to own a home. The monthly payment (principal and interest) for financing 80% of that median priced home has only increased by 13% during that same timeframe - due to mortgage rates declining from 3.96% (in 2015) to 2.67% (now). So if you didn't buy five (or four, or three, or two, or one) years ago your mortgage payment today will not be 32% higher than five years ago even if the price is 32% higher. If you have been thinking about buying a home for the past few years, but have not done so, these increases in prices are likely quite depressing. The lower rates and thus lower monthly payments are somewhat of a consolation - but it still is not that fun to see that you have to pay a higher and higher price for the same home year after year. But, that's the market these days. If you fall into the category above (thought about buying but haven't) and you're feeling rotten about how much you'd have to pay for a house today - you have an interest choice in 2021. Do you just go ahead and buy a house even though you can't believe how much you have to pay for it? Do you keep waiting, wondering if prices will come back down in the future? While lower mortgage interest rates have kept housing payments for new buyers more affordable despite rising home prices, that could all change if interest rates start to increase significantly. That is not currently predicted for 2021, but it seems that eventually rates will have to start going up? That's all from me, for now. If this 32% increase in prices over five years seems shocking, or depressing, or awesome to you -- drop me a line (scott@hhtdy.com) and let me know what you're thinking or how you're feeling about these changes in home values in our area. Receive updates from HarrisonburgHousingToday.com via e-mail: Enter your e-mail address: Recent Articles: When Should I Start Looking For A Home To Buy If My Lease Ends This Summer? Office Building, 77 Apartments and 93,600 SF of Storage Units Proposed Amidst Residential Developments, Church, Rescue Squad and Hospital in Rockingham County There Are Usually Two Phases Of Looking For A Home January Housing Inventory Levels Sink To New Lows Will Buyer Activity Continue Full Strength In January? Maybe Some Townhouse Developments Have Fewer Homeowners (Living In Those Townhouses) Than I Thought Juniper Hill Commons, A Multi-Generational Cohousing Community Is Under Development On Keezletown Road Most Homes Sold Quickly In 2020! Not Much Negotiability In Home Prices In 2020 At Year End, Home Sales Up 13%, Prices Up 10% in 2020 in Harrisonburg, Rockingham County
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Jan 28, 2021 (unless otherwise noted).
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