New Construction
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35% Of Townhome, Duplex and Condo Sales Are New Homes! |
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 This stat (illustrated above) might surprise you. It surprised me! Thus far in 2021 there have been 379 sales of townhomes, duplexes and condos in Harrisonburg and Rockingham County as recorded in the HRAR MLS. Of those 379 sales -- 35% of them have been new home sales! I know there have been plenty of new home sales (particular of attached properties) in 2021, but I didn't think it was more than a third of all attached homes that are selling. Here are some of the spots where we have seen the most sales of new townhomes, duplexes and condos thus far in 2021...
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Townhouses in Phase 2 of The Townes at Congers Creek Now Available For Purchase |
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 The Townes at Congers Creek is a new townhouse development located in Rockingham County, across Boyers Road from Sentara RMH Medical Center. The first phase of the development included 26 townhouses, all of which are under contract or sold. A second phase of townhouses is now under development that will include 133 more townhouses in a few different styles...  view a larger plat here The three styles of townhouses will include...
You can find pricing, availability, a site plan, standard features, available upgrades and more at CongersCreek.com. The first (10) townhouses at Congers Creek hit the market yesterday and it seems likely that (5) of those will be under contract by the end of the weekend. You can also email me with any questions you might have, as I am the Realtor representing the builder/developer. | |
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I Think Harrisonburg Has Created More Homeowners and Would Be Homeowners Over The Past Decade Than Builders Have Created New Houses For Purchase |
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 This won't deal with numbers or data -- just concepts and ideas, but here's the theory... I Think Harrisonburg Has Created More Homeowners and Would Be Homeowners Over The Past Decade Than Builders Have Created New Houses For Purchase Harrisonburg, Virginia is a popular place to live.
All in all, I think Harrisonburg has had sustained population growth over the past ten or so years -- many of whom bought homes or wanted to buy homes but couldn't find anything to buy. We could dig into the census and try to pin a number on that growth it but it would be imprecise at best. Let's just call them Net New H'burg Residents. Also over the past decade, builders have built some, but not a lot of new houses for purchase...
We could dig into building permit data and try to figure out what type of properties have been built, how many have been for homeowners (not renters), etc., but this would be imprecise at best. Let's just call them New Homes For Homebuyers. Having summarized these dynamics, I think you see where I'm going. I think... Net New H'burg Residents > New Homes For Homebuyers I actually don't even think those two numbers are close. I think the number of net new Harrisonburg residents far exceeds the new homes that have been built for homebuyers. If you bought into my theory, what, then, would this mean for the future?
So, that's what I think. What do you think? Does this seem like a reasonable understanding of some of the current dynamics in the Harrisonburg housing market? | |
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The Phoenix at Harrisonburg, A Senior Living Community, Opening in Spring 2022 |
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 view a larger map here A Senior Living Community called The Phoenix at Harrisonburg is opening early next year at the intersection of Stone Spring Road and Boyers Road, across Stone Spring Road from Preston Lake Apartments. Per the the Phoenix Development Group Partners website, this community will include...
The community will also include "exterior amenities such as a bocce ball court, covered pavilion with fireplace and grill station, and three interior courtyards." | |
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Further Details Of Cobblers Valley, The Latest Ryan Homes Community In Rockingham County |
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 Ryan Homes is currently building duplexes in McGaheysville (South Peak) and single family homes and townhomes in Grottoes (Shady Creek) and now they will be building more single family homes and townhomes in Harrisonburg and Rockingham County. Here's what we know so far... Here's the original (perhaps now out of date) plat of the neighborhood...  The Ryan Homes website indicates that the single family homes will have garages... and yards... and will start in the low $300K's. TBD if that's $305K or $349K. ;-) Ryan Homes (via the current landowner) is asking the City approve a rezoning to allow for up to 40 townhomes to be built on the City's portion of the development. Here's the plat from the City Planning Commission's packet...  view it larger here The full packet of information from the City Planning Commission can be downloaded here. In the County, Ryan Homes (via the current landowner) is asking permission to only limit their construction to 80 homes per year (instead of 40 homes per year) -- and they would not be planning to build townhomes until July 2022. You can see a bit of the site plan from Ryan Homes here...  view it larger here You can download the full packet from the County Planning Commission here. | |
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Over 4,000 New Homes Are Under Construction Or Being Planned In Harrisonburg, Rockingham County |
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 From time to time I post information here on my blog about new neighborhoods or communities that are being developed. I thought it might be helpful to compile all of that information in one place. Here are the new communities where dirt is moving for a combined total of over 1,800 new homes...
Here are the new communities currently being planned with a combined total of over 2,300 new homes...
I have compiled an overview document that includes all of the communities listed above as well as...
You'll find all of this information by visiting HarrisonburgNewHomes.com. If you have information about other new communities not currently on my list, let me know. If you see something on my list that is incorrect -- please email me with additional information so that I can make the list more accurate. | |
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Yes, We Need More Townhouses To Be Built! |
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 When you see more townhouses being built -- or when you see plans being discussed for more townhouses to be built -- you might be thinking... What!? More townhouses!? Don't we have enough townhouses!? But if you ask nearly any local Realtor who has represented the seller of a townhouse in or near Harrisonburg in 2021 they will tell you... Yes, We Need More Townhouses To Be Built! Whenever a resale townhouse comes on the market it is almost always overwhelmed with showings in the first few days on the market -- and then the offers start coming in, fast and furious. Buyers are offering over asking price. Buyers are waiving inspection contingencies. Buyers are desperate to find a townhouse to buy. But yet, when there are 12 offers on a townhouse, the seller is only able to accept one of those offers. As a result, there are still 11 would-be townhouse buyers circling the market waiting on that next townhouse to become available. As quickly becomes evident, demand for townhouses FAR exceeds supply -- so... Yes, More Townhouses Need To Be Built! If I dialed in a bit further on this issue, I suppose I should point out that...
So, while it would be great to continue to see options over $250K, it would also be amazing to see new townhouse options much closer to $200K. | |
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155 Single Family Homes Proposed In New Neighborhood, Peak Mountain, In McGaheysville |
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 view a larger plat here We might see up to 155 detached single family coming to McGaheysville soon, located between McGaheysville Road, Power Dam Road and Three Leagues Road. Four tracts of land totaling 41.99 acres are currently zoned A-1 and A-2 but the owner is proposing that the County rezone them PSF-C... Planned Single-family Residential with Conditions. This neighborhood of detached homes is planned to include 155 homes...
The neighborhood would also include a shared-use path. View all of the details in the Rezoning Case Report here. | |
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225 Townhomes, 175 Single Family Homes or Duplexes Planned For Cobblers Valley |
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view a larger jpg here A new neighborhood is under development on the south side of Harrisonburg, straddling the City / County line. As shown on the site plan above, this development will potentially include 225 townhomes and 175 single family homes or duplexes. Details are still scarce as to what exactly will be built on these lots, but if you drive by, you'll note that dirt is moving - presumably for the construction of roads and installation of water lines and sewer lines. Download the site plan here. | |
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Are Lumber Prices Finally Starting To Normalize? |
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 If you haven't heard -- lumber prices skyrocketed during COVID. The graph above shows only the past 12 months. If we look a bit further back we can get a bit more context...
So, "normal" over the four years prior to COVID seemed to be a range of around $300 to $475 --- although prices did rise to $639 back in mid 2018. But then, as lumber mills shut down due to COVID and production slowed, prices skyrocketed, getting as high as $1,635 in May 2021. But over the past month, that price has fallen quite a bit...
So, a nearly 50% decline in prices over the past 45 days? That is solid progress towards getting lumber prices back to their long term normal-ish range. Hopefully this will mean we'll start to see more new construction, creating more housing inventory, and easing the inventory strained housing market... | |
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265 (More) Apartments Planned For Stone Spring Road |
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 Harman Realty and Stone Spring Holdings LLC are proposing to build 265 apartments in a development to be called EPOCH on Stone Spring Road, between The Overlook at Stone Spring and Squire Hill Apartments. These apartments would be built on the 17 acres shown above. The proposed site plan references cottages, townhouses and apartments -- but they all seem to be multiple dwelling units per building, so they might all feel like apartments? City staff recommends approval of this proposal, as does the Planning Commission. City Council will have the final say on the matter in the near future.  | |
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Buying vs Building When Hit With Low Inventory AND High Building Costs |
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 Typically, the tension between buying vs building is one of: 1. Goals 2. Money 3. Timing If you build, you can get the house you want, but you'll pay more for it and it will take a lot of time and attention. 1. Goals = Win 2. Money = Lose 3. Timing = Lose If you buy an existing home, you won't get exactly what you want, but you will pay less for the house and the process will not be a drain on your time. 1. Goals = Lose 2. Money = Win 3. Timing = Win Don't let my oversimplification of this issue fool you -- this is something that buyers can get stuck debating for months, or even years, often while looking at resale homes to try to convince themselves to buy instead building. AND -- two current market conditions are making it an even more complicated decision...
If you are stuck in this quagmire, I'd be happy to meet with you to talk through some of the pros and cons and try to help you come to a decision you'll be pleased with in the short and long term. | |
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34 Single Family Home and Duplex Lots Planned At Highview Estates, Just North of Harrisonburg City Line |
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 view a larger map here Per recent versions of the Rockingham County Planning Commission meeting packets, a new development is being planned for Route 42 North -- just barely outside the City of Harrisonburg, The site plan currently on file with the County is shown below, though it is likely not the final site plan. Per the County's notes it is "awaiting corrections and resubmittal." The current version of the site plan shows (18) single family home lots and (16) duplex lots -- for a total of 34 homes.  view a clearer plan here This is one of the many new residential developments in Harrisonburg and Rockingham County that are under construction or in planning phases as outlined here. | |
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New Residential Developments In Harrisonburg, Rockingham County |
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 As I hear about new developments being planned or proposed or approved, I'll add them to the list below. What am I missing or forgetting? CITY OF HARRISONBURG - PLANNED / PROPOSED Two41 (Blue Ridge Drive)
Stoney Ridge (South Main Street)
Juniper Hill Commons (Keezletown Road) ROCKINGHAM COUNTY - UNDER CONSTRUCTION Congers Creek Townhomes (Boyers Road)
Congers Creek Apartments (Boyers Road)
Crescent Ridge (Taylor Spring Lane)
Bridgewater Fields (Bridgewater)
Locust Grove Village (Boyers Road)
Preston Lake Apartments (Boyers Road)
Senior Living Facility (Boyers Road)
South Peak (McGaheysville) ROCKINGHAM COUNTY - PLANNED / PROPOSED Wingate Meadows (Pleasant Valley Road)
Boyers Crossing (Boyers Road)
Stoney Ridge (South Main Street)
Crownpoint Independent Living (Apple Valley Road)
Overbrook (McGaheysville)
The Ponds of Island Ford (McGaheysville)
Highview Estates (Harpine Highway)
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29 More Townhouses Likely Coming To Vine Street |
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 view a larger map here The Harrisonburg Planning Commission recommended the approval of the rezoning of a 2.25 acre parcel on Vine Street to allow for 29 townhouses to be built as per the proposed site plan below...  view a larger site plan here This is one of the many new residential developments in Harrisonburg and Rockingham County that are under construction or in planning phases as outlined here. | |
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Ryan Homes May Be Starting To Help Some Housing Inventory Issues In Rockingham County |
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 Ryan Homes, a regional builder currently building homes in 15 different states including Virginia now has two communities underway in Rockingham County and likely will be bringing more on board in the future. SOUTH PEAK is a community of single level, three bedroom (1343 - 1527 SF) duplexes in McGaheysville with current pricing seeming to be mostly between $275K and $350K. While it appears that this will be a community of 72 duplex, thus far, 35 homes have sold, 2 are under contract and one is listed for sale, at least per the MLS. SHADY CREEK is a community of three and four bedroom (1296 - 1903 SF) single family homes (so far, though I believe attached dwellings are to come) in Grottoes with current pricing seeming to be mostly between $270K and $325K. Thus far, 17 homes are under contract and 4 are listed for sale, at least per the MLS. We are definitely having some inventory issues in Harrisonburg and Rockingham County -- with more buyers wanting to buy than there are sellers willing to sell. New home construction at scale can help to address this unmet buyer demand. Thus far, these communities by Ryan Homes are only hitting two segments of our local market but I believe we will see more communities to come that will likely create inventory in other areas and price ranges in our local market. | |
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Building Lots For Sale in Harrisonburg, Rockingham County |
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 If you aren't finding what you're looking for in a resale home, you could always build a home! Yes, admittedly, construction costs are high right now, but you may want to at least explore your options. The list above shows each of the subdivisions where you can currently buy a building lot in Harrisonburg and Rockingham County. If you are interested in additional details on any of these building lots, just let me know.
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You Can Buy A New Single Family Home Under $300K, Or Even Under $250K |
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 With home prices rising so much over the past few years if you just took a cursory look at the market you might think your only option for a new home under $250K is a townhouse. That's not actually true. In the past year, (20) new single family (detached) homes sold under $250K in Harrisonburg and Rockingham County for less than $250K. Hard to believe isn't it? See them all here. If we expanded that to homes under $300K, we'll find 36 sales! Not interested in what sold over an entire year? Curious about what is currently on the market? There are 40 new homes under $300K that are currently on the market and under contract and 7 new homes currently for sale under $300K. Many of the new homes under $250K are currently found in Brentwood subdivision where a new section just opened up. Many of the new homes between $250K and $300K are in Shady Creek, in Grottoes, where Ryan Homes just started building homes. Now, it should also be noted that some buyers might look at the new homes available under $250K or under $300K and say...
...all of which are valid conclusions -- but just because some buyers won't choose to buy these new homes under $250K or under $300K based on their style, size or location that doesn't mean that they aren't being built -- or that it is not possible to build them. Also, circling back to the beginning -- it is certainly true that you can spend over $250K on a new townhouse -- with the two current obvious examples being Congers Creek and Crescent Ridge. | |
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How To Solve The Housing Inventory Crisis |
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 Here are the top three ways to solve our current housing inventory crisis...
No, but really. Keep reading to find out why... Let's think about it for a moment... here are how there come to be new listings for sale...
So, as you can see, all of these ways in which new listings come about are not likely (in the current market at the current time) to help us dig our way out of our local housing inventory crisis. So, what's the answer? Basically, the only way we will make meaningful progress towards addressing this crisis in housing inventory is if quite a few new homes are built! Here's hoping that area builders will be building some new homes for buyers to buy in 2021 and beyond in Harrisonburg and Rockingham County! | |
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337 Homes To Be Built On Pleasant Valley Road |
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 A new neighborhood is coming to Pleasant Valley Road, across the street from The Springs at Osceola. Way back in 2009, this land was rezoned as a part of the 282.86 acres of land that was to be developed as The Springs at Osceola. Now, however, the developer plans to develop the 71.502 acres on the west side of Pleasant Valley Road as a separate neighborhood, Wingate Meadows subdivision. Wingate Meadows would consist of 337 homes, including...
County staff recommended approving this rezoning on January 28, 2021. The Planning Commission recommended approving this rezoning on February 2, 2021. The Board of Supervisors approved the subdivision on February 24, 2021. You can download the rezoning packet here, and this is the proposed layout...  view a larger version here | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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