Supply and Demand --- Market Forces At Work
Scott P. Rogers
Each price segment of the Harrisonburg and Rockingham County real estate market is experiencing something somewhat different. Each month I break it down into three basic price ranges . . .
Homes priced under $200,000 - - - 6 months of supply available - - - no change from last month
Homes priced between $200k and $350k - - - 10 months of supply available - - - supply is up, from 8 months
Homes priced over $350,000 - - - 20 months of supply availble - - - supply is down, from 22 months
In an ideal world (for both buyers and sellers) we'd see 6 months in all three price ranges. This is considered by many to be a healthy amount of homes on the market such that neither seller nor buyer has a significant advantage in negotiations. What follows, then, is that buyers of homes over $350,000 have the potential for quite a bit of negotiating power.
For those who loves the numbers, here is the methodology. . .
This analysis is based on sales for Harrisonburg and Rockingham County, as reflected by the Harrisonburg/Rockingham Association of Realtors.
Homes priced under $200,000 - - - 6 months of supply available - - - no change from last month
Homes priced between $200k and $350k - - - 10 months of supply available - - - supply is up, from 8 months
Homes priced over $350,000 - - - 20 months of supply availble - - - supply is down, from 22 months
In an ideal world (for both buyers and sellers) we'd see 6 months in all three price ranges. This is considered by many to be a healthy amount of homes on the market such that neither seller nor buyer has a significant advantage in negotiations. What follows, then, is that buyers of homes over $350,000 have the potential for quite a bit of negotiating power.
For those who loves the numbers, here is the methodology. . .
| Under $200,000 | $200k - $350k | Over $350,000 | |
| Sold in September: 29 | Sold in September: 32 | Sold in September: 4 | |
| Sold in October: 51 | Sold in October: 40 | Sold in October: 10 | |
| Sold in November: 58 | Sold in November: 35 | Sold in November: 13 | |
| Avg Sold / Month: 46 | Avg Sold / Month: 36 | Avg Sold / Month: 9 | |
| Available: 287 | Available: 342 | Available: 184 | |
| Months Supply: 6 | Months Supply: 10 | Months Supply: 20 |
This analysis is based on sales for Harrisonburg and Rockingham County, as reflected by the Harrisonburg/Rockingham Association of Realtors.
