Photo courtesy of Joshua Gooden
MOVING ON UP Market Solid in Harrisonburg and Rockingham County
eflecting a designation of â€œthe second-fastest growing area of the Commonwealth,â€? the real estate market in the Valley will likely generate a fourth year of solid residential sales and steadily rising values, which has been a trend for the past several years. With residential sales exceeding 1,300 and the highest median home price ever of $228,000 at the end of last year, the expectation is to see this positive trend continuing for the near future. Several economic factors are contributing energy to the dynamic market such as stable job growth, which is the steady bedrock for a local housing market. Mortgage interest rates remain at historic lows and home buyers and sellers should expect them to remain low through the rest of the year. On average homes are selling faster in this fast-paced market, which indicates consistent buyer demand and the shrinking availability of active listings. In fact, the declining inventory is likely the main reason that sales
22 HARRISONBURG-ROCKINGHAM CHAMBER OF COMMERCE
have not reached a higher level. What seems to be fueling the growth in residential sales is demand at both ends of the life cycle. The regionâ€™s amenities and climate are attracting ever-more retirees taking advantage of college town activities. At the same time, more university graduates are choosing to stay and start businesses as they want to hang on to the pleasant time they have experienced. In turn, that is also attracting their parents to move to the area in order to be near grandchildren. This virtuous loop does not show any signs of lagging. The only drag on this expanding momentum is a low inventory of homes in the lower price range of $100,000 to $250,000. Those wanting to enter the market find limited choices. Those wanting to downsize, which would free up inventory, worry they will be unable to find something to suit their needs. This inventory concern could be alleviated by additional residential development. There are many projects in the planning
The 2019-2020 Community Profile and Membership Directory.