Markets Bouncing Back
City-County Home Sales Jump 9 Percent In 2012
Posted: January 18, 2013
HARRISONBURG — Local real estate brokers had several reasons to celebrate the New Year.
Residential sales in Harrisonburg and Rockingham County increased nearly 9 percent in 2012 over the year before and prices are stable, instilling confidence that the real estate market is recovering from the housing bust that came to a head in 2008.
“Relative to everything that’s happened since 2006, things are looking really good,” said Karl Waizecker, a Kline May Realty broker. “I think a lot of trends are becoming evident that are very good.”
Figures from the Harrisonburg-Rockingham Association of Realtors, compiled by local brokers, show 864 total sales last year, up 70 from 2011.
A quirky November transaction has skewed the data somewhat, but taken together, signs show the market is on the upswing, Realtors say.
The sale of 22 condominiums in Harrisonburg artificially inflated the sales data and decreased the average price.
In 2012, the average sales price was $193,484, a drop of 0.81 percent from 2011. But if the 22-condo deal is removed from the calculation, the average price would have increased 1.3 percent to $197,676, notes a report from Kline May Realty.
The median sales price, meanwhile, increased in 2012 by 0.57 percent to $175,000. The median is the price at which half of all sales were above and half fell below.
December’s median sales price was up 6 percent compared to the same month in 2011.
Another positive sign is the number of contracts that were signed last year, Realtors say.
Association data show 981 homes entered contract in 2012, a 20 percent increase from the year before.
Contracts generally turn into sales within a month or two, but some deals fall through.
Corner Turned?
A key data point is inventory, which is trending downward toward a more balanced market, notes a report by Funkhouser Real Estate Group associate broker Scott Rogers.
Inventory declined to 572 homes in December, down 15 percent for the year and 27 percent over the past two years.
As of Dec. 31, the area had a supply just shy of eight months. A balanced market has about six months of supply, and inventory is expected to drop during the upcoming spring selling season.
“When things kind of get balanced and stay balanced, that’s the best for everybody long term,” Waizecker said.
With more buyers expected to enter the market this spring and inventory decreasing, prices are expected to increase in 2013, said William Haithcock, chief executive officer of the Harrisonburg-Rockingham Association of Realtors.
“That’s something we’ve been waiting on for a long time,” he said.
Haithcock said the data indicates the market is bouncing back.
“The housing market recovery is real and growing. … It had looked like we had turned the corner in 2011, and 2012 has clearly borne that out,” he said.
Mike Pugh, president of Old Dominion Realty, said 2013 nationwide projections from Wells Fargo economists show a 9.5 percent increase in sales of existing homes and nearly 28 percent increase in new homes. Pugh said those expectations are realistic.
“Our area typically is in a little bit better shape than most areas of the country,” he said. “So, I would expect those figures to occur here locally.”
Waizecker said he would expect sales to go up 5 to 10 percent.
Contact Jeremy Hunt at 574-6273 or jhunt@dnronline.com
Residential sales in Harrisonburg and Rockingham County increased nearly 9 percent in 2012 over the year before and prices are stable, instilling confidence that the real estate market is recovering from the housing bust that came to a head in 2008.
“Relative to everything that’s happened since 2006, things are looking really good,” said Karl Waizecker, a Kline May Realty broker. “I think a lot of trends are becoming evident that are very good.”
Figures from the Harrisonburg-Rockingham Association of Realtors, compiled by local brokers, show 864 total sales last year, up 70 from 2011.
A quirky November transaction has skewed the data somewhat, but taken together, signs show the market is on the upswing, Realtors say.
The sale of 22 condominiums in Harrisonburg artificially inflated the sales data and decreased the average price.
In 2012, the average sales price was $193,484, a drop of 0.81 percent from 2011. But if the 22-condo deal is removed from the calculation, the average price would have increased 1.3 percent to $197,676, notes a report from Kline May Realty.
The median sales price, meanwhile, increased in 2012 by 0.57 percent to $175,000. The median is the price at which half of all sales were above and half fell below.
December’s median sales price was up 6 percent compared to the same month in 2011.
Another positive sign is the number of contracts that were signed last year, Realtors say.
Association data show 981 homes entered contract in 2012, a 20 percent increase from the year before.
Contracts generally turn into sales within a month or two, but some deals fall through.
Corner Turned?
A key data point is inventory, which is trending downward toward a more balanced market, notes a report by Funkhouser Real Estate Group associate broker Scott Rogers.
Inventory declined to 572 homes in December, down 15 percent for the year and 27 percent over the past two years.
As of Dec. 31, the area had a supply just shy of eight months. A balanced market has about six months of supply, and inventory is expected to drop during the upcoming spring selling season.
“When things kind of get balanced and stay balanced, that’s the best for everybody long term,” Waizecker said.
With more buyers expected to enter the market this spring and inventory decreasing, prices are expected to increase in 2013, said William Haithcock, chief executive officer of the Harrisonburg-Rockingham Association of Realtors.
“That’s something we’ve been waiting on for a long time,” he said.
Haithcock said the data indicates the market is bouncing back.
“The housing market recovery is real and growing. … It had looked like we had turned the corner in 2011, and 2012 has clearly borne that out,” he said.
Mike Pugh, president of Old Dominion Realty, said 2013 nationwide projections from Wells Fargo economists show a 9.5 percent increase in sales of existing homes and nearly 28 percent increase in new homes. Pugh said those expectations are realistic.
“Our area typically is in a little bit better shape than most areas of the country,” he said. “So, I would expect those figures to occur here locally.”
Waizecker said he would expect sales to go up 5 to 10 percent.
Contact Jeremy Hunt at 574-6273 or jhunt@dnronline.com