Plenty of townhouse buyers from the past five years would now like to sell their townhouse and move up to a single family home.  But it has been difficult to do so recently because of adjustments in townhouse values.



Thus, I have counseled many townhouse owners that if they really want to move up to a single family home, that they ought to seriously consider leasing their townhouse instead of selling it.

This doesn't work for everyone (especially if you need to free up some equity in your townhouse) but it can be a great long-term decision.

Read about how unwillingly keeping your townhouse might be your best (unintentional) financial move yet to see how the owner of such a townhouse could potentially experience $230,000 of gain over 30 years of owning the townhouse.

If you can't sell, you should seriously consider leasing your townhouse, and I'd be happy to help you analyze the opportunity to see what would make the most sense for your situation.
  

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There are some deals to be had on townhouses in Harrisonburg, based on:

• several properties that my clients have under contract
• several recent sales as recorded in the MLS

Some of these are bank owned properties (post-foreclosure) and some are homeowners who are just ready to move on.

I have had investors take advantage of some of these great opportunities, and I have had some first time buyers take advantage of them. 

Send me an e-mail (scott@HarrisonburgHousingToday.com) or call me (540-578-0102) if you are looking for a great deal on a townhouse and I'll fill you in on the details.   

Also, don't forget that you can find out a lot of information about townhouses communities in/around Harrisonburg by visiting HarrisonburgTownhouses.com.
  

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Here is an example of the type of information you'll find on HarrisonburgTownhouses.com.

 

Nestled in the woods of the Bluestone Hills neighborhood, The Townes at Bluestone is convenient to everything. Within just a one-mile radius, you will find more than 40 restaurants, major department stores, a 14 screen movie theater and a state-of-the art fitness center. The Townes at Bluestone offers an array of amenities including single and double-car garages, nine-foot ceilings, crown molding, and extensive windows. This community is still under construction and is being developed by OakCrest Builders out of Winchester, VA.

 

Streets in The Townes at Bluestone include: Deyerle Avenue, Blue Stone Hills Drive, Lapis Lane, Sapphire Drive and Tanzanite Drive.

Properties Currently For Sale...

	348 Blue Stone Hills Dr, Harrisonburg, VA 22801 2 bedrooms, 2.5 bathrooms, 1,617 SF	$214,900	more info
	375 Blue Stone Hills Dr, Harrisonburg, VA 22801 3 bedrooms, 2.5 bathrooms, 1,436 SF	$204,900	more info
	371 Blue Stone Hills Dr, Harrisonburg, VA 22801 2 bedrooms, 2.5 bathrooms, 1,436 SF	$203,900	more info
	379 Blue Stone Hills Dr, Harrisonburg, VA 22801 3 bedrooms, 2.5 bathrooms, 1,436 SF	$197,900	more info

Below you will find details of sales in this neighborhood during the past 24 months.
If you have any questions about these sales, please let me know.  This data is updated twice per month.

10/31/2011	381 Blue Stone Hills Dr, Harrisonburg, VA	2 BR	2.5 BA	1,436 SF	$204,000
9/30/2011	383 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,582 SF	$213,510
9/15/2011	377 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,436 SF	$199,900
8/12/2011	2191 Deyerle Ave, Harrisonburg, VA	2 BR	2.5 BA	1,617 SF	$200,000
5/2/2011	373 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	3.5 BA	2,119 SF	$211,000
12/22/2010	360 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	3 BA	2,193 SF	$210,000
11/12/2010	369 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,582 SF	$218,550
9/23/2010	364 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,617 SF	$226,225
5/4/2010	362 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,617 SF	$218,500
4/22/2010	346 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,617 SF	$193,000
2/26/2010	358 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	2.5 BA	1,617 SF	$204,000
2/17/2010	356 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	3.5 BA	2,088 SF	$245,000
2/12/2010	366 Blue Stone Hills Dr, Harrisonburg, VA	3 BR	3.5 BA	2,088 SF	$235,150

Governing Documents:

Supplemental Declaration Of Covenants, The Townes At Bluestone
The Townes At Bluestone, Plat
Plat Of Lot Lines, BlueStone Hills

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Exciting news... today I launched HarrisonburgTownhouses.com, your comprehensive source for information on townhouse communities in and around Harrisonburg, Virginia, including, for each community….

• a photo tour
• the size and age of the neighborhood
• an overview of the floor plans available
• property owner association dues
• trend data showing the pace of sales and changes in market value
• a neighborhood map
• properties currently for sale
• recent sales in the neighborhood
• restrictive covenants and a plat

This detailed information is available for the following townhouse communities....

• Avalon Woods
• Beacon Hill Townes
• Blakely Park
• Country Club Court
• Emerald Drive Estates
• Harmony Heights
• Liberty Square I
• Liberty Square II
• Meadow Pointe
• Northfield Estates
• Parkcrest
• Preston Lake
• Reherd Acres
• Southside Heights
• Stonewall Heights
• Taylor Grove Townes
• Taylor Spring
• The Gables
• The Townes at Bluestone
• The Townes at Wellington Park
• Twin Gables
• Vista Terrace

Why, you might ask, did I compile all of this information?  One of my professional goals is to provide as much real estate related information as possible to the Harrisonburg and Rockingham County community as a service to homeowners, buyers, sellers, Realtors, business professionals and local government agencies.  To that end, I have created HarrisonburgTownhouses.com as a clearinghouse for information about townhouse communities in and around Harrisonburg, Virginia.

Here are a few of the other web sites that I have created that might be of interest to you….

• HarrisonburgHousingMarket.com – Here you'll find the most recent edition of my monthly market report on the local housing market.
• HarrisonburgNewHomes.com – A listing of new home communities that I am currently marketing for sale in and around Harrisonburg.
• HarrisonburgForeclosures.com – Upcoming trustee sales (property auctions at the courthouse).
• HarrisonburgREO.com – Currently available bank owned (REO) properties.
• HarrisonburgShortSales.com – Currently available properties that are potential short sales.
• HarrisonburgLeasePurchase.com – Currently available properties where the owner will consider a lease/purchase option.
• HarrisonburgOwnerFinancing.com – Currently available properties where the owner will consider providing owner financing.
• HarrisonburgPropertyTransfers.com – A record of recent property transfers (with or without a Realtor).

If you are considering buying or selling a property in Harrisonburg or Rockingham County, please contact me (Scott Rogers) at 540-578-0102 or scott@HarrisonburgHousingToday.com, as I would be delighted to have the opportunity to work with you in your purchase or sale.

 

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Detached home = single family home
Attached home = duplex, townhouse, condominium

So, which property type has shown a stronger performance over the past 11 years in Harrisonburg and Rockingham County?

• Attached homes maintained their value for longer before starting to decline.
  
• Attached homes have increased more in value over the past 11 years.
• Attached homes have seen a smaller decline since their peak.

But despite all of this, I believe the detached home market will be a stronger performer over the next five years, because:

• Demand for (sales of) detached homes increased 12% in 2011.
• Demand for (sales of) attached homes decreased 17% in 2011.

 

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What a wild ride it has been for the townhouses market in Harrisonburg and Rockingham County.  How about a brief history before looking at today's great opportunities....

Early 2000's:  moderate sales (200/y) and low prices ($100K)
In 2000 and 2001 there were around 200 townhouse sales per year, and the median sales price for townhouses was right around $100K.  At the time, interest rates were around 7.5%, so a monthly payment on a 96.5% (FHA) loan would have been right around $745/month.

Mid 2000's:  escalating sales (650/y) and escalating prices ($170K)
As real estate markets across the country heated up between 2003 and 2006, there were more townhouse buyers than ever in Harrisonburg and Rockingham County.  The pace of sales peaked in 2005 with an amazing 644 townhouse sales, and prices peaked in 2008 with a median sales price of $167K.  At the time, interest rates were around 6%, so a monthly payment on a 96.5% (FHA) loan would have been $1,085/month.

Early 2010's:  slow sales (150/y) and softer prices ($140K)
Since the high of 644 townhouse sales in 2005, the pace has drastically dropped, down to only about 160 sales in 2011.  This reduced demand for townhouses has brought prices down, and median prices are now at $143K.  Interest rates are currently just under 4%, so a monthly payment on a 96.5% (FHA) loan would be right around $760/month.

So, now on to some specific examples of the great opportunities in today's market:

• Some of my clients sold a townhouse this week to a young professional who was paying close to $1000/month in rent for an apartment before she purchased her townhouse.  Her new townhouse -- an end unit with two master suites and a full unfinished walkout basement now costs her a grand total of around $790/month.  Wow!  If she ends up moving out of the area at some point, she could easily rent the townhouse (likely for around $900/month) and have positive cash flow from day one!
   
  
• Another of my clients is buying a three bedroom bank owned townhouse with a full unfinished basement for just under $130K.  Bank owned properties certainly offer some good opportunities, and this investor has already lined up tenants who will be paying him over $1,000/month in rent.  With a 20% down payment (it's an investment property) the mortgage payment will only be taking about $600/month out of this $1,000 of rental income per month.

As you can see, there are some great opportunities in the current townhouse market --- both for first time buyers, and for investors.  Please let me know if you'd like some assistance in finding a property!  I'd be excited to help you find a great opportunity.
 

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Sometimes it can be helpful to see how all of the Harrisonburg townhouse communities are arranged relative to each other and relative to other points of interest such as JMU and EMU.  Here's a map I created to show all (or most) of the townhouses in and around Harrisonburg.  Click on the map for a large version (3MB) that prints well on 11" x 17" paper.

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Do you like playing Monopoly?

If you bought a townhouse between 2000 and 2005 in the City of Harrisonburg (perhaps in Liberty Square, Beacon Hill, Avalon Woods or Harmony Heights) I would encourage you to check with a lender to see if you can buy a second townhouse.

I have many clients who bought two-level townhomes between 2000 and 2005 and bought them for anywhere between $100K and $125K.  As a result, their mortgage payments are somewhere in the neighborhood of $700/month including principal, interest, taxes, insurance, and homeowners association dues.  ($115K purchase price, 100% financing at 4.5% over 30 years)

That townhouse can very likely be rented in the current market for $850/month to $900/month.

There continue to be isolated opportunities to buy re-sale townhouses in these same neighborhoods for around $125K to $140K.  The new mortgage payment could thus be around $800/month including principal, interest, taxes, insurance, and homeowners association dues.  ($135K purchase price, 96.5% financing at 4.75% over 30 years)

Monthly cash flow now:
Mortgage payment (etc) = -$700
Total cost = $700/month

Monthly cash flow after acquiring a second townhouse:
Mortgage payment (etc) on 1st townhouse = -$700
Rental income from 1st townhouse = +$850
Mortgage payment (etc) on 2nd townhouse = -$800
Total cost = $650/month

You'll actually lower your monthly costs by $50 by acquiring a second townhouse.  Furthermore your tenant will be paying off your first mortgage for you, and you will own approximately $270K of real estate instead of only $135K.

So, what do you say?  Are you ready to invest?
 

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