The Harrisonburg-Rockingham housing segment continues to experience one of the strongest markets in recent years. Annual home sales are up over 21% while July home sales are up nearly 5% over the previous year. Home prices have increased only slightly at over 2% over the previous year.
Homes that sell in this market are doing so at a quicker pace than the previous year. If a property is placed on the market with the right marketing plan, including proper pricing, it should go to settlement in just over four months.
Home Sales represents the number of closings in the given month. July home sales were up over the previous month and outperformed the previous three years. We expect home sales to level off over the coming months.
July experienced a slight increase in monthly contracts. This is a good indicator of the number of closings in the coming month or two. The past four months have been a wonderful opportunity for sellers to see activity on their homes.
Inventory was up again over the past month to 676 residential properties. Based on home sales over the past 12 months, there is currently just over 7 months of inventory on the market.
Interest rates continue to rise! The mortgage market experienced a jump in rates over the past three months. Although we expect rates to continue to increase, they are historically low and offer an opportunity for today’s buyer to make their housing more affordable over the long term of ownership.