Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Brought to you by Scott P. Rogers, Funkhouser Real Estate Group, 540-578-0102, scott@HarrisonburgHousingToday.com
Tuesday, May 25, 2021
At first glance, yes, the current increase in median sales prices DEFINITELY mirrors the last run up in prices.
- Blue Line = Last Time (2003-2006)
- Orange Line = This Time (2017-2020)
But, let's look a bit closer...
Last Time...
- Home values increased rapidly in Harrisonburg and Rockingham County between 2003 and 2006.
- Within three years, the median sales price jumped from $127,700 to $192,983.
- This was a 51% increase in home values in a three year period!
As an important side note -- the median sales price then flattened out (2006-2008) and next declined 13% between 2008 and 2011.
This Time...
- We're starting to see a home values increasing relatively quickly again.
- The median sales price increased from $198,250 to $244,900 between 2017 and 2020.
- This was a 24% increase over three years.
So...
Yes - median sales prices are currently increasing much faster than normal from any historical perspective and it seems unlikely that they could keep going up like this forever.
But - the current increases in median sales price (+24% over three years) are only about half the size of the last time we saw a real estate boom (+51% over three years) so it's not quite as severe of an increase as last time.
Certainly, though, many wonder if median sales prices will flatten out (seems possible) or decline (seems less likely) in the coming years.
