Click here to download Market Update charts for July 2012.
With 94 residential sales in Harrisonburg and Rockingham County, as reported by the Harrisonburg-Rockingham Association of Realtors Multiple Listing Service (HRAR MLS), July, 2012 became the most productive month for local real estate since the tax-credit-deadline-fueled month of June, 2010. July also continued this year's trend of steadily increasing monthly sales, marking 6 consecutive months. While this trend will likely end in August, our market is more active than it has been in several years and sales are up 8.13% over 2011.
Home prices, while appearing to have stabilized this year, have not yet begun to increase. Much higher levels of activity in the lower price ranges as compared to homes over $300,000 will likely continue to keep averages down for a while. Median prices, arguably a better indicator of the market, have been very steady for the past year. The current median sales price for the past 12 months sales activity is $175,000 – exactly the same as it was in July, 2011:
Three year change: Average Price down -13.24%, Median Price down -10.21%
One year change: Average Price down -4.58%, Median Price down 0.00%
Inventory in both the City and County declined in July, possibly signaling the beginning of the traditional reduction of inventory through the late summer, fall and winter months. If buyers are active during the fall, we may finally reach a tipping point in terms of the balance between supply and demand in the housing market and see prices begin to slowly climb. Only time will tell, but the conditions of strong buyer activity, declining inventory and historically low interest rates suggest the recovery could continue through the remainder of the year.
Click here to view or download our Market Activity Charts for July 2012.