It is wonderful that the median sales price, and thus home values, have not significantly eroded in the Harrisonburg and Rockingham County real estate market.  In fact:

• The median sales price increased 61% over the past nine years, at an average rate of 6.7% per year.
• Housing values in many other parts of the country have fallen significantly over the past three years, but the median sales price in Harrisonburg and Rockingham County has only declined by 3% over the past three years, at an average rate of 1% per year.

Yet, despite the fact that home values are holding rather steady in our market, that doesn't necessarily mean that you'll be able to sell your home for the same amount that you could have sold it in 2006.  What is the problem here, you might ask?  It's your neighbor!

You see, if you bought a townhome in Harrisonburg for $160,000 in 2006, you might think you could sell it for about $155,200 now (3% less) given the statistics above.  But......if your neighbor bought their townhouse several years earlier for $130,000.....they may be competing with you by listing their house at only $140,000.  They can, you see, sell for less and still make a profit.

Likewise, if you bought a home in Rockingham County for $400,000 in 2006,you might think you could sell it for about $388,000 now (3% less)given the statistics above.  But......if your neighbor bought theirhome several years earlier for $325,000.....they may be competingwith you by listing their house at only $350,000.  They can, you see,sell for less and still make a profit.

So....I'm not encouraging you to get upset with your neighbor, or try to get them to increase the asking price on their home --- but you do need to know that competing list prices affect the value of your home (if you're trying to sell it) just as much as recent sales (as reflected in median sales prices).