Learn more about this month's Featured Property: 141 Diamond Court

I just published my monthly report on the Harrisonburg and Rockingham County real estate market.  Jump to the full online market report, watch the video overview below, download the PDF, or read on for highlights....

First, a video overview....



Now, let's take a look at the overall market performance in January 2017....



As shown above, home sales were slightly (3%) slower in January 2017 -- but added to recent strong months of sales to show a 14% year-over-year improvement in the annual pace of home sales.  Furthermore, median sales prices have increased 3.78% over the past year -- and days on market has declined by 13%.

Next, taking a look at buyer activity in the way of signed contracts....



As shown above, buyers signed contracts at a slightly slower pace (67 contracts) in January 2017, as compared to in January 2016 -- when 74 buyers signed contracts.  That said -- the annual pace of contract activity (1,324 in the past year) is still markedly above the prior year when there were 1,170 contracts signed.  We are likely to see a bit more contract activity in February 2017 -- but really see things take off in March if last year is any indication.

BUT NOW -- THE BIG STORY....



As shown above, we are seeing a DRASTIC decline in the number of homes for sale in our local market.  One year ago, buyers in the market for a new home would be selecting from 532 homes (in all price ranges and locations) but now they would only have 368 options.  This is a drastic reduction in the number of homes available for sale, which could lead to increases in sales prices, or reductions in the number of homes that actually sell this year -- due to not having enough homes on the market for buyers to purchase.

BUT IT GETS EVEN MORE EXTREME....



Many housing market analysts consider a six month supply of homes to be a balanced market between buyers and sellers.  That is to say that if 100 homes are selling per month, then the market would be balanced if there were 600 homes for sale.

As shown above, the market is out of balance in several price ranges.  There are only four months of homes for sale in the $200K-$300K price range and the $300K-$400K price range -- but even more significant -- there are only TWO MONTHS of homes for sale under $200K.  That is to say that if no other properties were put on the market under $200K, then in two months time, we could be all the way down to no inventory at all on the market.

So, as is likely evident, we need more homes to be listed for sale in the next few months to have any chance at having a normal Spring and Summer market in Harrisonburg and Rockingham County.

There is plenty more to learn and consider in this month's market report, such as....

• Prices have increased 3% in the County, but have not increased in the City.
   
• Twice as many homes sell in the County each year as compared to the City.
   
• Median prices seem to have started rising much more quickly in the past six months as compared to any time in the past two years.
   
• Price per square foot is rising again, steadily and quickly.
   
• More and more homes are selling quickly when they are listed for sale.
   
• The $300K-$400K market is on fire compared to all other price ranges.

I will explore many of these topics in coming days on my blog. Until then, feel free to read my full online market report, or download the PDF, or click here to sign up to receive my real estate blog by email.

And -- as is always my encouragement -- if you will be buying or selling a home in the near future, start learning about our local housing market sooner rather than later!  Being informed will allow you to make better real estate decisions.

Here are two handy references to prepare yourself to buy or sell a home....

• BuyingAHomeInHarrisonburg.com


• SellingAHomeInHarrisonburg.com

And if you are ready to get the process started, simply contact me at 540-578-0102 or scott@HarrisonburgHousingToday.com.