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!
Townhouses
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Tips For Townhouse Buyers In A Competitive Market |
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 Over the past few months I have listed several townhouses for sale that went under contract quickly after a LOT of showings in a very short timeframe. For one such recent property there were six offers within 48 hours. One of the things that struck me as we worked through that process was that there were five other buyers who really (!!) wanted to buy that townhouse and couldn't -- because there was only one townhouse to be purchased. As such, I feel bad for townhouse buyers in the current market. Townhouse buyers have a LOT of competition and I can imagine a single buyer making an offer on multiple townhouses and missing out every time. So, a few tips for would be townhome buyers...
I suppose one critical aspect that I did not list above would be to hire a buyer's agent to represent you in finding, pursuing and purchasing your townhome. I'd suggest you select someone who is highly responsive, professional and knowledgeable about the market. Happy townhouse shopping! (Or may it just not be too unbearably difficult, frustrating and tiring.) | |
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City Townhouses Are Selling QUICKLY! |
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 Townhouses in the City of Harrisonburg are selling QUICKLY! The "Days On Market" referenced above is the number of days between when a property is listed for sale and when it goes under contract. Just three years ago, the median days on market was 24 days - which means that half of the townhouses that sold went under contract in fewer than 24 days, and half took longer than 24 days. But now, the median days on market has dropped down to just FIVE days in 2020. Oftentimes, sellers of townhouses who want to buy a single family home are worried that they won't be able to sell their townhouse quickly enough to then make an offer on the house they want to purchase - this should be at least somewhat less of a concern now given the speed at which townhouses are going under contract! | |
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Should You List Your Rental Property For Sale For One Month Between Tenants? |
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 Depending on your short and long term financial goals - yes, it may be an excellent idea in the current market to do just that - list your rental property for sale for one month between tenants... In a recent conversation with the owner of a rental property, they were reflecting on the fact that after a tenant recently vacated their rental property (a townhouse) they were making quite a few updates and improvements to the townhouse based on some aging components and finishes in the property. They realized that the townhouse would be in better shape than it had been for years -- and that the condition would likely start to deteriorate (even if just a bit) as soon as they moved tenants back in. So, they wondered whether they should go ahead and just sell the townhouse instead of renting it again -- since it would be in great shape. But they lamented the fact that they'd need to keep it off the rental market for several months to see if it would sell at a price that would suit their financial goals - in other words, a sales price whereby it would make more sense for them to sell it than to continue to rent it. Here are a few thoughts I shared with this owner of an investment property...
So - here's an idea, if you own an investment property and you are about to have a tenant move out and you are about to make some improvements to the townhouse... Move the tenant out. Make the improvements. List the townhouse for sale for one month at a price for which you'd be happy to sell instead of continuing to rent the property -- so long as that value is generally in line with recent sales prices for similar townhouses. With this concept you don't have to commit to listing the property for six months, missing out on rental income, etc. -- but you can quickly determine if you could sell the townhouse while it is at its peak (from a condition perspective) at a price that would make it worthwhile for you to do so. OK - that was a lot. I'd be happy to talk it all through with you as well - in person, by email, by phone, etc. If you own a rental property and *might* want to sell it soon - be in touch (scott@hhtdy.com or 540-578-0102) and let's talk strategy... | |
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32 Townhouses To Be Built on Boyers Road |
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 Randy Cosner is planning to build 32 townhouses on 2.741 acres on Boyers Road as shown above. Below is the intended site layout, which includes common areas with a fenced tot lot playground and a picnic area with benches and a fire pit.  The townhouses are to be built similar to the rendering below. Of note -- it is not clear whether these townhouses will be sold to individual buyers, sold to investors to then be rented, or retained by the builder to be rented. The townhouses pictured below are located on Leslie Court, located off of Vine Street, near its intersection with North Main Street. All 24 townhouses built on Leslie Court were purchased by investors (a total of perhaps four entities) and all 24 townhouses are now rented.  If you have driven by this location (Boyers Road) anytime recently you will have seen that all of the trees have cleared to prepare for construction. | |
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Would Be City Townhouse Buyers Finding Few Options |
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 Some time ago, I created a website (HarrisonburgTownhouses.com) for exploring townhouse communities in and around Harrisonburg, Virginia. This allows you to explore sales trends, value trends, see recent sales, current listings, etc. So -- feel free to explore the website -- but don't expect to find many townhouses listed for sale. If you were a buyer looking to buy a townhouse, built in the past 10 years, you'd have some difficulty. Current inventory (as of 1/8/2019) includes:
So - as excited as a first time buyer might be to purchase a townhouse in the City of Harrisonburg - they will find that they have very (!!) limited options right now. | |
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Townhouse Sales Trends in Harrisonburg and Surrounding Areas |
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 This is a somewhat limited analysis, but I think it can be helpful to understand what we're seeing in changes in demand for new-ish townhouses in the City of Harrisonburg and just surrounding. The analysis above includes the following townhouse developments of properties built since 2000:
As shown on the chart, there are an increasing number of sales happening in these developments (88 sales in 2018 is for the first eight months of the year) and the median sales price is rising -- more quickly now than a few years ago. I expect sales of this type of townhouse to continue to be strong over the next few years -- though if we see a large number of new construction townhouse developments coming online it could affect the pace of sales in resale townhouse developments. | |
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Bidding Wars over City Townhouses |
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 The last few townhouses listed for sale in the City of Harrisonburg (under $175K, built since 2000) have gone under contract QUICKLY -- with multiple offers. So far, we have not seen a wild uptick in median prices of townhouses based on this excessive demand (and limited supply) but we could start to see that at some point.... Median Townhouse/Condo Sales Price in Harrisonburg and Rockingham County:
If you are fortunate enough to own one of these -- and be in the market to sell it -- you should not have difficulty in securing a buyer. If you are unfortunate enough to want to buy one of these -- bid early, bid aggressively, and if you keep missing out on properties, be prepared to bid often. | |
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Zero City Townhomes For Sale, Without Tenants, Built in the Past 10 Years |
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Well -- I was going to remind you of this great web site or exploring our local townhouse communities where you might consider purchasing a home or investment property.... HarrisonburgTownhouses.com And then, in the process of poking around to see what types of townhouses are currently on the market, I discovered that.... There are ZERO (zip, zilch, nada) townhouses currently for sale in the City of Harrisonburg, that exist (not "to be built") that have been built in the past 10 years, that do not have a tenant living in them. That long sentence might make it seem like I am looking for a very narrow category or properties -- but I don't think I am. If a buyer wanted to buy a City townhome built in the past 10 years, and close on their purchase in the next two months, they would need the townhouse to already exist (not something that requires another 4 - 5 months of construction) and they would need the townhouse to not be tenant occupied. There are some townhouses on the market at The Townes at Bluestone that are under construction and could be available in a few months. There are some townhouses on the market in Beacon Hill (and on Norwood Street) that currently have tenants in them. But as far as recently (past 10 years) built townhouses ready for an owner occupant to move in -- buyers currently have ZERO options -- yet another example of how low our inventory levels have become. | |
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Should you buy or rent a townhouse in Harrisonburg? |
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 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....
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Where Have All The Townhouses Gone? Buyers Have Bought Them Every One! |
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 OK, admittedly, there are still SOME townhouses remaining to be purchased in Harrisonburg and Rockingham County -- but the inventory levels are declining relatively quickly. In fact, there are now just 68 townhouses (and duplexes and condos) for sale in all of Harrisonburg and Rockingham County -- which is a 59% decline from two years ago. Wow! Some part of this is that buyer demand is increasing -- and the situation also isn't helped by the very small number of new townhouses that are being built these days. Over the past 10-15 years we saw many new townhouse developments that (at the time) fell into that price range, including:
Now, however, there are significantly fewer options available when it comes to newly built townhouses in or near Harrisonburg, under $200K....
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Limited Options for New Townhouses in Harrisonburg |
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 One of the reasons why the under $200K market is inventory-challenged right now is because there is very little new construction happening in this price range. Over the past 10-15 years we saw many new townhouse developments that (at the time) fell into that price range, including:
Now, however, there are significantly fewer options available when it comes to newly built townhouses in or near Harrisonburg, under $200K....
I think a considerable opportunity exists for a townhouse developer to build new, $170K - $190K townhouses in the City of Harrisonburg -- if it can be done! | |
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Will the Median Sales Price of Townhouses Perk Up in 2017? |
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 Despite increases in the pace of sales over the past five (!!) years, we have not seen increases in the median sales price of these properties over the past two years. In fact, the median sales prices of townhouses (and duplexes and condos) actually declined by 1% in 2016. So -- what might 2017 have in store for us? So far, it seems that we might see an overall increase in the median sales price, but it is still early in the year. Stay tuned, and until then, feel free to peruse my full market report by clicking on the image below.  | |
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Last call for a new townhouse at The Townes at Bluestone in 2015 |
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 If you were hoping to buy a new townhouse at The Townes at Bluestone in 2015, you only have one more opportunity to do so. These townhouses are selling fast, and there is only one remaining townhouse available that could be completed this year. There are plenty more in future sections of the community, but the next building will not be complete until Spring 2016 (+/-). Feel free to walk through the model home, online, in 3D here. | |
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Townhouse (duplex, condo) buyers from 2008 may have to wait until 2018 to see their home value return to the original purchase price |
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 Yesterday I ran an analysis on single family home values -- which suggested that home buyers from 2006 may have to wait until 2020 to see their home value return to the original purchase price. Today, we're answering a similar question for townhouses.... So, let's say one bought a townhouse in 2008or any of the other "red" years above. What's the thought on a reasonable expectation for a townhouse to at least recover the value to the purchase price (and then, of course, hopefully, higher)?OK, so, first of all -- the values in the middle (red and green) column above are showing the potential current value of your townhouse depending on when in the past 15 years you purchased the home. Basically, those folks who purchased before (2000-2005) the real estate boom have higher home values now than when they purchased their townhouse -- and people who bought between 2006 and 2010 have a lower home value today. Townhouse buyers in recent years (2011-2013) are doing just fine. So, back to the question at hand -- how long it will take townhouses to return to the value that they had when they were purchased. As shown above in the right (grey and yellow) column, we can sort of guess as what that time frame will look like if we assume that home values will increase 3% per year over the next five (etc.) years. This analysis shows that....
And, for the data lovers out there, feel free to peruse lots of market indicators and graphs at HarrisonburgHousingMarket.com. | |
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Buying a townhouse in Harrisonburg or Rockingham County |
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 If you are considering the purchase of a townhouse in Harrisonburg or Rockingham County, you'll likely want to know about all of the townhouse communities that might be of interest, as well as knowing recent sales prices in those communities, current availability, etc. Find all of that information, and more, at HarrisonburgTownhouses.com. | |
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Revamped HarrisonburgTownhouses.com now features aerial images and live analysis of sales trends |
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A few years ago, I created HarrisonburgTownhouses.com, a website providing comprehensive information about the main townhouse communities in and around Harrisonburg, Virginia. Today, HarrisonburgTownhouses.com has been revamped and relaunched with an entirely new format and now featuring an aerial photo of each community and live analysis of sales pace and price trends. Take a look, and let me know what you think, or if you have any recommendations for further improvements.  This is a sampling of some of the information you will find for each townhouse community....  Explore more at HarrisonburgTownhouses.com. | |
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New Townhouses in the City of Harrisonburg |
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 There aren't many new townhouses going up in Harrisonburg -- but The Townes at Bluestone is one example of a new townhouse development that is proving to be very popular with buyers. These townhouses feature plenty of upscale features including:
The next set of townhouses with garages (Lots 98-101) is being released this week. A few price points to consider at The Townes include....
Find out more about The Townes at Bluestone.... | |
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Upscale New Townhouses Selling Fast in Blue Stone Hills |
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 Townhouses are selling fast in Section II at The Townes at Bluestone -- with only one townhouse remaining for sale in the first building of townhouses (Lots 94-97) with garages. Next to hit the market will be a building of seven townhouses with walkout basements (Lots 125-131) that will start at $184,900. Learn more..... If you have been secretly planning to buy one of these townhouses, let me know, so I can alert the builder of your interest. | |
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New Townhouses at The Townes at Bluestone |
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 Exciting news! Townhouses are now for sale in Section 2 at The Townes at Bluestone, starting at $184,900. You can see the location of the first two buildings, as well as the pricing, here, and you can view and download the floor plans here. If you are looking for a NEW townhouse in the City of Harrisonburg, The Townes at Bluestone may be a great option for you. Find out more at TheTownesAtBluestone.com, or let me know (540-578-0102) if you would like to meet me over at the model home to take a look at the community. | |
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Updates sales trends on HarrisonburgTownhouses.com |
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 HarrisonburgTownhouses.com has been updated with sales data from 2013-Q4, and many townhouse communities are (finally) starting to see median prices increase again. So, are you wondering about property values in your townhouse community? Or considering purchasing an investment property? Whatever the reason for your interest in townhouses in Harrisonburg, you will likely find the information you need at HarrisonburgTownhouses.com, including (for each townhouse community):
The townhouse communities featured on HarrisonburgTownhouses.com include:
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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