Welcome! This blog tracks the real estate market in the Central Shenandoah Valley, featuring market data and analysis, an exploration of common buying and selling questions, and candid commentary on all things real estate.
If you are interested in discussing any of the topics on this blog, or the details of your specific real estate situation, call or e-mail me!
Older Posts |
![]() |
![]() |
142 Unit Multi-Family Development, Two41, Proposed At Intersection Of Blue Ridge Drive, Country Club Road |
|
![]() Bluestone Land, the development entity behind The Colonnade (in downtown Harrisonburg) and Preston Lake Apartments (currently under construction) is proposing to build 142 apartments at the intersection of Blue Ridge Drive and Country Club Court. The proposed site plan is shown above, and here's a rendering of what one of the apartment buildings would look like... ![]() The current owner of the property (alongside the proposed developer) is requesting that the property be rezoned from R-1 to R-5 and is asking for a special use permit to allow for more than 12 units per apartment building. Here are some further details of this proposed community...
You can read more about this here: Updated 2/11/2021: Per the 2/21/2021 Daily News Record, the Planning Commission recommended denial of this rezoning request and City Council sent the request back to Planning Commission for further review. | |
![]() |
![]() |
![]() |
![]() |
Why Is Unmet Home Buyer Demand So High In Harrisonburg? |
|
![]() Earlier this week I was chatting with some friends and clients who relocated out of Harrisonburg (out of state) nearly a decade ago. They are now looking to move back to Harrisonburg and are accurately observing that our local housing market is at a drastically different point now than it was a decade (+/-) ago when they left. The most pressing issue at hand for them, as soon-to-be buyers in this market, is the extraordinary high level of unmet home buyer demand. And so we pondered aloud why in the world buyer demand is so high in Harrisonburg. Here's my overly condensed thesis...
Put differently, with some make believe numbers, to illustrate the point... 2010 = population of 50,000 2020 = population of 55,000 Increased population = 5,000 5000 newly built housing options between 2010 and 2020:
The problem, then, is that many more than 500 (10%) of the new population want to buy single family detached homes -- but that is not what has been built over the past decade. Further exacerbating the problem is that plenty of the already existing 50,000 population also wants to move up to a single family detached home, putting more and more pressure on that segment of the market. So - the population is increasing and housing options are increasing, but the housing that is being created is not matching what the expanding population desires. Why!? Basically, it's all about profitability as a developer. For all the ways to develop a 10 acre parcel of land, this is a rough approximation of the ranking of their potential profitability...
At this point, most land being developed is not being developed for single family homes because that is not the most profitable way to develop the land. So long as student housing keeps being rented as soon as it is built, and non-student apartments keep being rented as soon as they are built, and townhouses keep being rented as soon as they are built, and townhouses for sale keep being bought before they are built -- it remains relatively unlikely that land in or close to Harrisonburg will be developed for single family homes. I am now accepting recommendations for more cheery perspectives to write about next week. Call. Text. Email. Help! ;-) | |
![]() |
![]() |
![]() |
![]() |
All Of The Developments On Boyers Road |
|
Have you heard about that new development on Boyers Road? There are quite a few of them!
Those are all of the major developments I'm aware of along Boyers Road - but who knows what else is to come along this increasingly busy corridor! | |
![]() |
![]() |
![]() |
![]() |
More Details On Preston Lake Apartments, Upscale Apartments Just Outside Harrisonburg |
|
![]() If you are in the market for a recently built, reasonably nice, non-student apartment in or near Harrisonburg, the only current option at scale (aside from much smaller developments) is The Reserve at Stoneport -- located catty-corner from the Sentara RMH Medical Center. Prices at The Reserve at Stoneport currently seem to fall in these ranges...
But now there is another option in town -- or there will be soon. Preston Lake Apartments are currently under construction on Stone Spring Road at its intersection with East Market Street. These apartments are owned by and built by a different entity than the developer/builder of Preston Lake the adjacent residential neighborhood where new homes are being built. Prices at Preston Lake Apartments currently seem to fall into these ranges...
| |
![]() |
![]() |
![]() |
![]() |
Renting or Buying A Home Within A 5 Year Time Horizon |
|
![]() If you will only be in your next home for two (or 1, 3, 4 or 5) years -- should you buy that home? Or just rent a home instead? Let's take a look, assuming a price point in the current market of around $175K - which is likely to be a townhouse and might be what you are considering as a first time buyer... ![]() As becomes pretty quickly, above, it doesn't necessarily make much sense to buy if you are only going to be in your home for 1 or 2 years -- and once you get to a time horizon of 4 or more years, it almost certainly makes sense to buy a home. For clarity, let's look at how I'm determining the cost of renting and buying this fictional house... The Total Cost of Renting Includes... Monthly rental rate x 12 x # years Yep, that's it The Total Cost of Buying Includes... Monthly mortgage payment x 12 x # years + closing closing costs when buying your home (3.5%) + cost of selling your home (5% + $1K) + potential maintenance costs (1% / y) - appreciation of your home's value (2% / y) - potential tax benefits of interest paid (int x 40% x 25%) Here's a visual (click for a closer look) as to how those numbers line up over a one through five year time horizon... I should also note that it is quite possible to be "just fine" from a financial perspective if you buy and only end up being in the home for a year or two if...
As you are thinking through whether you should buy or rent -- at a $175K price point or otherwise -- feel free to touch base with me and I can give you some feedback and advice based on your overall circumstances. | |
![]() |
![]() |
![]() |
![]() |
Should You Rent or Buy With a 2, 3 or 5 Year Time Frame? |
|
![]() Should You Rent or Buy With a 2, 3 or 5 Year Time Frame? Looking at two different price points for townhouses ($175K, $225K) a quick analysis would indicate that...
So, buy the townhouse, right? Well, sort of... The comparison above ONLY accounts for the monthly payments and does not account for...
So, let's look at it again, a bit more thoroughly... ![]() ![]() ![]() Above I have tried to account for ALL of those factors, and looking at a two year window, three year window and five year window. This analysis indicates that you should probably plan to be in your home for 5+ years if you want the total financial transaction(s) to be a net positive. That said, there are, of course, plenty of extenuating circumstances. Many people might buy a $175K house (or townhouse) even if they are planning to be there for only 3 years --- because they want their own home (not their landlord's), or to get in a certain neighborhood, or because of the tax benefits, etc. Every buyer's situation is different, and I'd be happy to help you run an analysis similar to those shown below if you're interested in analyzing your best housing move. | |
![]() |
![]() |
![]() |
![]() |
156 Apartments To Be Built on Reservoir Street |
|
Well, it looks like another 156 apartments will be built on Reservoir Street, just outside of the City limits in Rockingham County. The Board of Supervisors recently approved a rezoning of this 6.302 acres to essentially be a second phase of the Robinson Park apartments immediately adjacent to this new project. Per the Daily News Record the 156 apartment complex will be comprised of:
Apparently, the complex will also include a clubhouse and outdoor pool. Further review of the minutes from the January 23, 2019 meeting of the Board of Supervisors offers these insights...
So, there you have it. More apartments coming soon on Resevoir Street... which may or may not make Harrisonburg a place young alums can call home for decades... | |
![]() |
![]() |
![]() |
![]() |
Owners, Operators of Short Term Residential Rentals in Rockingham County to Pay Transient Occupancy Tax |
|
![]() If you are renting part or all of your Rockingham County home out on AirBNB you will need to start collecting and paying a transient occupancy tax of 5% of the gross rent starting January 1, 2019. Read on from yesterday's update from Rockingham County... ### NOTICE TO ALL OWNERS AND OPERATORS OF SHORT TERM RESIDENTIAL RENTALS LOCATED IN ROCKINGHAM COUNTY Beginning January 1, 2019, all owners of residential properties located in Rockingham County, Virginia, who rent all or any portion of a residential property for not more than 30 consecutive days must collect from the tenant the transient occupancy tax of 5% of the gross rent and remit the tax collected to the Commissioner of the Revenue for Rockingham County. The tax must be collected at the time of rental, and the remittance is made quarterly with the filing of a return. Owners and operators of short term rental properties should contact the Office of the Commissioner of the Revenue of Rockingham County for more details and information. 540-564- 3073. ### A short term rental is defined here as being a rental period of less than 30 days. | |
![]() |
![]() |
![]() |
![]() |
Lots (and lots) of High End Apartments Being Built |
|
In addition to the 168 apartments about to be built at the intersection of Stone Spring Road and East Market Street (near Preston Lake) -- there are already hundreds now complete at The Reserve at Stoneport. Per my earlier research, it seems this community may contain 408 apartments, with rental rates from $1000 - $1800. How many high end apartments are needed in this area? While only a few years ago no high end apartments existed in our local market, now I believe Stoneport is already nearly entirely leased. How much unmet demand is there for these apartments? Apartment developers don't seem to have met the demand yet. Oh, and also of note in the aerial image above, it seems Dupont Community Credit Union put some solar panels on the roof of their new bank. Nice! ![]() | |
![]() |
![]() |
![]() |
![]() |
Renting vs Buying a Townhouse in Harrisonburg |
|
![]() Given continued relatively low interest rates and some increase in home values, let's take a new look at the opportunities of buying versus renting. RENT = $1050/m. There are regularly options for renting a two-story townhouse in Harrisonburg for approximately $1050 / month in Avalon Woods, Beacon Hill, Stonewall Heights, Liberty Square, etc. BUY = $1104/m. With a 95% loan, buying such a townhouse apparently may cost as little/muchas $1,272 per month assuming a $160K purchase price and a 4.7% interest rate per SunTrust Mortgage's payment calculator. So -- at first glace, it would seem to be about $54/month more expensive to buy a townhouse as compared to renting one right now. That said, if we then look at the difference between renting and buying over a five year time period, we start to see a bigger picture... Total Rental Payments over 5 Years = $63,000 Total Mortgage Payments over 5 Years = $66,240 Principal Reduction of Mortgage over 5 Years = $13,025 Effective Total Housing Payments over 5 Years = $53,215 Savings over 5 Years = $9,785 As you can see, this builds a somewhat compelling case for buying instead of renting if you are going to be living in this potential townhouse for the next five years. A few other factors to keep in mind....
| |
![]() |
![]() |
![]() |
![]() |
Should you buy or rent a townhouse in Harrisonburg? |
|
![]() Given continued low interest rates and some increase in home values, let's take a new look at the opportunities of buying versus renting. RENT = $1050/m. There are regularly options for renting a two-story townhouse in Harrisonburg for approximately $1050 / month in Avalon Woods, Beacon Hill, Stonewall Heights, Liberty Square, etc. BUY = $1012/m. With a 95% loan, buying such a townhouse apparently may cost as little as $1,012 per month assuming a $155K purchase price and a 4% interest rate per SunTrust Mortgage's payment calculator.... ![]() This shows a rather small, $38/month, cost savings of buying instead of renting. If we then look at the difference between renting and buying over a five year time period, the advantages start to pile up. ![]() As you can see, this builds a rather compelling case for buying instead of renting if you are going to be living in this potential townhouse for the next five years. Two other factors to keep in mind....
| |
![]() |
![]() |
![]() |
![]() |
Does New College Student Housing Increase the Demands on Local Elementary Schools? |
|
![]() Traditional logic would say no -- the construction of new college student housing in Harrisonburg won't increase the load on elementary schools, as most college students do not have elementary school aged children.... Going a step further, I would guess that some local government staff and elected officials MIGHT (?) use this traditional logic when thinking about whether to approve rezonings, or other approvals, for new student housing to be built in the Harrisonburg area. But wait - what if the following sequence happens (thanks Deb, with some revisions)....
I think we have seen this happen over the past 20 years in Harrisonburg, in cycles, as large quantities of student housing is built in waves. And think about it, from the other direction, for a moment -- we all know that the local elementary school population is growing -- but why, and where? It's not as if local developers and builders are out building an extraordinary number of townhomes or starter homes for young families, causing an influx of new elementary school students. So -- if the elementary school population is rising, and it's not because of an increase in the stock of owner occupied real estate in Harrisonburg, then.... 1. Perhaps this elementary (or K-12, really) school enrollment growth is, contrary to what we'd otherwise believe, a direct result of an increase in college student housing. 2. Perhaps we need to think about the fiscal impact of educating more elementary (and then middle and high) school students when we think about approving yet another student housing complex. 3. Perhaps, if building new student housing when we might not really need it, leads to increased demands on our local K-12 schools, then maybe we need to pay more attention to whether that student housing is needed. Just some thoughts to ponder as we think about and plan for the future here in the City of Harrisonburg -- and Rockingham County. | |
![]() |
![]() |
![]() |
![]() |
Attention investors, rentals are scarce, can you help out? |
|
![]() The townhouse shown above recently became available for rent -- and within days there were 30+ inquiries, multiple applications, and the tenants have already moved in. There is a significant shortage of well maintained rental properties for non-students in the City of Harrisonburg. So, investors, anyone want to step up to the plate and purchase some properties to turn around and rent? Now, admittedly, the return on such a property is not as favorable as you might find with a student rental, or a multi-family property, but the numbers still work. For example.... Purchase Price: $150,000 Down Payment: 20% ($30,000) Interest Rate on 30 year Mortgage: 4.5% Monthly Payment: $740 (principal, interest, taxes, insurance) Rental Income: $1050 Property Management: -$105 Association Dues: -$50 Mortgage Payment: -$740 Net Cash Flow: +$155 So -- if you're interested in buying a townhouse or two to help with this rental shortage -- and to benefit yourself financially, let me know. | |
![]() |
![]() |
![]() |
![]() |
Does buying or leasing make more sense with a two year time frame? |
|
![]() ![]() Does buying or leasing make more sense with a two year time frame? It depends on the price range, how much of a down payment you are making, whether you are willing to keep the property as a rental property after you move out, and many other factors. However, above I have included is a 2-year and a 3-year analysis of buying versus renting a property valued at $150K compared to $300K, which shows that....
There are, of course, plenty of extenuating circumstances. Many people might buy a $150K house (or townhouse) even if they are planning to be there for only 3 years --- because they want their own home (not their landlord's), or to get in a certain neighborhood, or because of the tax benefits, etc.
| |
![]() |
![]() |
![]() |
![]() |
More High End Apartments To Be Built at The Reserve at Stoneport |
|
![]() view a larger image ![]() view a larger image Apparently our area has an unmet need of high end rental properties, as The Reserve at Stoneport will be expanding their community off of Port Republic Road near Sentara RMH Medical Center. Current Community: 168 apartments Planned Expansion: 240 apartments Per the developer, the current inventory of apartments are 98 to 99 percent full, and the first apartments in the new phase will be available in late 2017. Rental rates will range from $985 - $1735 per month, and there were be even more one-bedroom units in the new phase....
| |
![]() |
![]() |
![]() |
![]() |
The Reserve at Stoneport (high end rentals in Rockingham County) |
|
![]() view a larger image ![]() view a larger image These upscale apartments at The Reserve at Stoneport were built over the past year or two and many seem to be renting quickly. There are floor plans with anywhere from one to three bedrooms, with rental rates starting at $985/month for a one bedroom apartment -- and going up to $1500-$1700 or a three bedroom apartment. These apartments are certainly a unique addition to our local rental market and I have been pleasantly surprised that they have leased as quickly as they do. Larger metro areas certainly seem to have lots of these types of rental communities, but this was a first for Harrisonburg and Rockingham County. | |
![]() |
![]() |
![]() |
![]() |
Should I rent or buy a townhouse in Harrisonburg? |
|
![]() Given continued low interest rates and some increase in home values, let's take a new look at the opportunities of buying versus renting. RENT = $1000/m. There are regularly options for renting a two-story townhouse in Harrisonburg for approximately $1000 / month in Avalon Woods, Beacon Hill, Stonewall Heights, Liberty Square, etc. BUY = $865/m. With a 95% loan, buying such a townhouse apparently may cost as little as $865 per month assuming a $140K purchase price and 3.875% interest rate per SunTrust Mortgage's payment calculator.... ![]() This shows an $135/month cost savings of buying instead of renting. If we then look at the difference between renting and buying over a five year time period, the advantages start to pile up. ![]() As you can see, this builds a rather compelling case for buying instead of renting if you are going to be living in this potential townhouse for the next five years. Two other factors to keep in mind....
| |
![]() |
![]() |
![]() |
![]() |
Non Student Apartments in Harrisonburg |
|
![]() This was another helpful data set in the housing study prepared for the Harrisonburg Housing and Redevelopment Authority.... Non-Student Apartment Complexes in Harrisonburg and Rockingham County:
| |
![]() |
![]() |
![]() |
![]() |
An extremely detailed analysis of buying vs renting |
|
![]() This calculator on the NY Times website (find it here) is the most detailed such calculator that I have seen in a long time. It takes many (MANY!) factors into account. If you're torn as to whether to buy or rent, feel free to check out the calculator, or set up a time to meet with me and we can discuss it together. | |
![]() |
![]() |
![]() |
![]() |
New upscale apartments at The Reserve at Stone Port |
|
![]() The Reserve at Stone Port, a new development of upscale apartments in close proximity to Sentara RMH Medical Center is set to open next month. This will be a first for Harrisonburg -- as most apartment complexes currently located in Harrisonburg are new - but are for primarily occupied by college students, or are older complexes and do not offer the these finishes, amenities, etc. According to the developer, these apartments will NOT be rented to undergraduate students. Phase 1 of The Reserve at Stone Port includes 168 units, but an additional 228 units are planned for future phases. The developer also recently began site work for Bellaire at Stone Port, an 88-unit assisted living and memory care community also to be built at Stone Port. This community is slated to open in January 2016. Read more about The Reserve at Stone Port, Bellaire at Stone Port, and Stone Port in general in last week's Daily News Record article. | |
![]() |
![]() |
Older Posts |
Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
Home Search
Housing Market Report
Harrisonburg Townhouses
Walk Through This Home
Investment Properties
Heritage Estates
The Glen at Cross Keys
The Townes at Bluestone
Cottages @ Stone Spring
Founders Way
Harrisonburg New Homes
Harrisonburg Assessments
Best Deals In Harrisonburg
Harrisonburg Foreclosures
Bank Owned Properties
Potential Short Sales
Lease/Purchase Options
Owner Financing
Property Transfers
New Listings
Recent Price Changes
Luxury Homes
Secret MRIS Listings
Secret GAAR Listing
Broadway VA Homes