Are Home Prices Rising Because Larger Homes Are Selling?
Scott P. Rogers
When you see a 12% increase in the median sales price between 2021 and 2022 you might wonder if it is just a result of larger homes selling this year than last.
It's a reasonable question, and a relatively straightforward one to investigate...
The graph above shows...
BLUE LINE = median sales price of single family homes in Harrisonburg and Rockingham County
GREEN LINE = median price per square foot of those same single family homes in Harrisonburg and Rockingham County
If the 12% increase in the median sales price could best be understood as a collective increase in the size of homes being sold, we would see an increase in the median price per square foot that was smaller than 12%.
In fact, over the past year, the median price per square foot has increased by 13%, right alongside the median price increasing by 12%.
So, this significant increase in sales prices does not seem to be attributable to larger homes selling.
