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.