May 2016 Rockingham County Market Report

ROCKINGHAM COUNTY MARKET REPORT MAY 2016

Presented by:

K L I N E RMe aAl tYy

HARRISONBURG & ROCKINGHAM COUNTY

Overall Area Summary

Units Sold Year to Date

12 Month Residential Sales

12 Month Average Sales Price

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway

14.80%

5.63%

$205,682

6.02 months

Interstate

81

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG

450

1,183

-2.51%

-18.82%

JMU Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

HARRISONBURG Units Sold Year to Date

12 Month Residential Sales

12 Month Average Sales Price

Overall Area Summary

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway

26.23%

15.77%

$179,793

Interstate

81

4.38 months

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG

154

411

-4.46%

-35.12%

JMU Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

SOUTHEAST ROCKINGHAM

Overall Area Summary

Units Sold Year to Date

12 Month Residential Sales

12 Month Average Sales Price

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway Interstate

14.29%

246

$255,424

81

6.98 months

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG JMU

96

-2.77%

-4.86%

-4.83%

Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

SOUTHWEST ROCKINGHAM

Overall Area Summary

Units Sold Year to Date

16.95%

12 Month Residential Sales

156

12 Month Average Sales Price

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway Interstate

2.45%

81

3.92 months

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG

69

-1.27%

$223,648

-20.91%

JMU Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

NORTHWEST ROCKINGHAM

Overall Area Summary

Units Sold Year to Date

12 Month Residential Sales

71

210

12 Month Average Sales Price

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway Interstate

81

1.65%

7.20 months

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG

-5.33%

-4.11%

$184,374

-18.74%

JMU Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

NORTHEAST ROCKINGHAM

Overall Area Summary

Units Sold Year to Date

12 Month Residential Sales

12 Month Average Sales Price

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway Interstate

81

20.00%

31.25%

7.77%

8.69 months

NORTHEAST ROCKINGHAM MASSANUTTEN

Elkton Route

33

HARRISONBURG JMU

36

105

$194,115

-25.70%

Route

33

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

Overall Area Summary

MASSANUTTEN Units Sold Year to Date

12 Month Residential Sales

12 Month Average Sales Price

Months Supply of Inventory

NORTHWEST ROCKINGHAM

Timberville Broadway Interstate

81

9.09%

0.00%

$217,502

NORTHEAST ROCKINGHAM MASSANUTTEN

47.34%

Elkton Route

33

HARRISONBURG

55

JMU Route

24

-2.65%

33

10.25 months

SOUTHEAST ROCKINGHAM

SOUTHWEST ROCKINGHAM Bridgewater © 2014, Kline May Realty

*Differences indicated from May 2015 Harrisonburg-Rockingham Association of REALTORS® statistics, as of May 31, 2016

Interstate

81

Grottoes

FINDING FOREVER HOMES

K

line May Realty is committed to helping the people in our community buy and sell homes. We’re still featuring animals from the RH-SPCA, but we have added an additional organization to our “Finding Forever Homes” line-up, Virignia Paws for Pits. The “Finding Forever Homes” segment on the Kline May Realty Television Showcase is in its second year, and it has been a huge success. During the segment, we introduce our viewers to animals who are in need of a forever home.

Pretty little Starbuck arrived to VPFP with her tail wagging and her spirits soaring. She is a sweet, petite little gal at only 45lbs. She loves belly rubs and a few good romps in the yard. She is a playful soul that practically does back flips when she sees her favorite toy come out. Starbuck would do best in a home where she is the only pet.

IF YOU WOULD LIKE TO BE MY FOREVER HOME, PLEASE CALL THE RH-SPCA AT 540-434-5270!

SALES ACTIVITY THIS MONTH RESIDENTIAL SALES BY MONTH Harrisonburg & Rockingham County, Monthly Sales, 2012-2016

140

128

120 100

2012 2013 2014 2015 2016

100

80

67

68

83

60 40 20

Fe b M . ar ch Ap ril M ay Ju ne Ju ly Au g.

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What This Chart Shows: Residential home sales by month, over the past 5 years. This chart helps show seasonal trends in home sales.

Bottom Line: Our busy market has continued through May, with the month’s 128 sales keeping 2016 significantly ahead of the past several years. Year-to-Date residential sales of 450 units represents an increase of nearly 15% over last year at this time.

Source: Harrisonburg - Rockingham Association of REALTORS® Multiple Listing Service, 5/31/16

SALES ACTIVITY THIS MONTH RESIDENTIAL PROPERTIES PLACED UNDER CONTRACT Harrisonburg and Rockingham County 2013-2016

What This Chart Shows: The number of residential properties on which Buyers and Sellers entered into contracts each month. This is an excellent indicator of future sales.

Bottom Line:

Buyers ratified contracts on 151 homes during the month of May. This is a very strong number, surpassing the May totals for the past several years. Buyers are scooping up homes that are properly priced, sometimes the same day a home hits the market. In this competitive market, Buyers should be prepared to move quickly – have their finances in order and a pre-approval letter from their lender. Buyers who aren’t ready to act quickly risk losing out in a competitive situation.

Source: Harrisonburg - Rockingham Association of REALTORS® Multiple Listing Service, 5/31/16

SALES TRENDS RESIDENTIAL UNITS SOLD YEAR TO DATE Harrisonburg and Rockingham County May 31, 2016

What This Chart Shows: Total residential sales from January 1 until the date on this chart, for each of the past five years.

Bottom Line: This year’s sales as of the end of May represent a 14.8% increase over the same time period last year. This is a significant increase, resulting from strong Buyer demand and favorable conditions in terms of interest rates and mortgage availability. We are beginning to see lenders easing their standards just a bit, allowing a new group of Buyers the chance to buy a home. This will continue as lenders’ tolerance for risk begins to return after the recession.

Source: Harrisonburg - Rockingham Association of REALTORS® Multiple Listing Service, 5/31/16

SALES TRENDS RESIDENTIAL SALES, PAST 12 MONTHS Harrisonburg & Rockingham County, Past 12 Months Sales, 2013-2016

What This Chart Shows: The past twelve months sales, for this month and each month since 2012. This is one of the best ways to see the true long term trend in the market.

Bottom Line: The 12 month sales trend is always a good indicator of the overall sales trends, much better than a monthly or quarterly number. Sales for the past 12 months have been 1,183 residential units. At this time last year that number was 1,095, which means sales in the past 12 months have increased 5.6% over the prior period. This is a reasonable rate of growth, sustainable over the long term.

Source: Harrisonburg - Rockingham Association of REALTORSÂŽ Multiple Listing Service, 5/31/16

INVENTORY SINGLE FAMILY AND TOWNHOME LISTING INVENTORY City of Harrisonburg 2012-2016

What This Chart Shows: The long term inventory trend in the City of Harrisonburg, with Single Family homes separated from Townhomes.

Bottom Line: The inventory of homes for sale in the City of Harrisonburg has been steadily declining for the past four years‌but it seems to be fighting to make a comeback over the past few months. Despite strong sales the overall inventory has risen slightly and will hopefully continue to rise, giving Buyers more choices.

Source: Harrisonburg - Rockingham Association of REALTORSÂŽ Multiple Listing Service, 5/31/16

INVENTORY SINGLE FAMILY AND TOWNHOME LISTING INVENTORY Rockingham County 2012-2016

What This Chart Shows: The long term inventory trend in Rockingham County, with Single Family homes separated from Townhomes.

Bottom Line: In contrast to the City’s inventory, the number of homes for sale is actually higher than at this point last year and has been fairly steady for the past four years. However…there remain severe shortages of homes for sale in certain price ranges and areas.

Source: Harrisonburg - Rockingham Association of REALTORS® Multiple Listing Service, 5/31/16

PRICING AVERAGE AND MEDIAN SOLD PRICE Harrisonburg and Rockingham County Rolling 12 Month Average, 2012-2016 1-Year Change Average - down 2.735% Median - same as May 2015

3-Year Change Average - up 6.267% Median - up 5.714%

What This Chart Shows: The long term trend in average and median sales price for homes.

Bottom Line: The average and median sales price numbers this month are puzzling. The average price of homes sold in the past 12 months is actually 2.7% lower than at this point last year. This in spite of furious competition for homes from Buyers and the resurgence of the luxury market, which would raise the overall average. The median is exactly the same as at this time last year. These numbers do not seem to reflect what is going on in the market, and we cannot explain why that is. We have to allow for potential errors in the data, or some kind of anomaly. We will watch things closely and see what next month’s numbers bring.

Source: Harrisonburg - Rockingham Association of REALTORSÂŽ Multiple Listing Service, 5/31/16

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