Trend of Median Residence Selling Prices in our Area.

I took some time yesterday and today to research in the Harrisonburg Rockingham Association of Realtors(R) Multiple Listing Service into the actual trend of Residential Selling Prices in our area.  I was somewhat surprised at what I found.  We have tons of inventory available, agents are "twiddling their thumbs" waiting for the floor calls that are rare, new home builders are offering substantial bonuses for signed contracts, and subdivision listing agents are offering discounts for sales closing before year end, yet look at the chart below.  The median selling price for residences has trended up since January 1!  Granted, there are some gyrations in the last couple months, but the majority of trend lines applied to the data still show an upward trend.  We haven't seen a substantial reduction in selling prices.  In Economics 101 textbooks, an increase in supply with a reduction in demand results in a reduction in selling price.  But this isn't happening.  My thought is that perhaps there is a "pent up demand" for homes in our area, just waiting for something to push buyers "over the top" into buying real estate, particularly homes.  We have a bustling local economy.  Our area's biggest employer, James Madison University, is committing to buy any available real estate within reasonable distance of the campus, including the Harrisonburg High School building and the vacant by 2010 Rockingham Memorial Hospital building.  This would indicate to me JMU anticipates a large increase in enrollment.  Local poultry plants are working near capacity.  Local School Boards are making plans to build more schools.  I am thinking that we will see a substantial upturn in the local real estate market by year end or spring at the latest.  Any comments?

Roger Monger, Realtor, MBA, e-PRO

540-476-4644

mailto:Roger@Roger4Realty.com

http://www.Roger4Realty.com

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