February 2008 - Sales are Down, Prices Are Up!?!

February 2008 home sales are the lowest on record within the past 5 years (beginning January 2003), according to data from the Harrisonburg-Rockingham Multiple Listing Service. Only 44 properties were transferred in February, down from 50 in January 2008, and down from 63 last February (2007).



The Good News

If we compare this February (2008) to last February (2007) we see two conflicting market conditions:

• Sales are down --- this year's 44 closings compared to last year's 63 closings shows a 43% drop in number of sales.
  
• Prices are up --- this year's average sale price (in February) of $234,908 compared to last year's average sale price (in February) of $227,788 shows a 3% increase in prices.
  

Advice to buyers --- be excited, as you have lots of choices, lots of negotiating power, and historically low interest rates.

Advice to sellers --- be patient, as it may take longer than you expect, or would like, for your home to sell.