Home Sales (and Inventory) Soar in June 2010, Contracts Decline


Home Sales (and Inventory) Soar in June 2010, Contracts Decline
July 8, 2010 Filed In: analysis, market, monthly market analysis, news
Click here for the full July 2010 Harrisonburg & Rockingham County Real Estate Market Report. We're not out of the woods yet, but several indicators are quite positive in the Harrisonburg and Rockingham County housing market. As can be seen above, June 2010 home sales soared up to 116 transactions -- the highest number of monthly sales we have seen in almost three years. Many of these home sales were likely a result of the home buyer tax credit deadline, so we may see a decline in July home sales. Above, you will note that long term indicators continue to trend very positively. This graph shows a rolling 12-month sum of home sales to remove the seasonal variation in sales. After several years of a declining market (in number of home sales), we have now seen a stabilization and increase for over six months. Despite good signs as far as closed home sales go, the number of buyers committing to buy during June 2010 (contracts signed) declined, both compared to the last several months, as well as compared to the past three months of June (2007, 2008, 2009). This will likely result in lower levels of home sales in July and August. In addition to home sales, inventory levels also soared in June 2010 -- cresting above 1,000 homes for sale for the first time in recent past (and maybe the first time ever). We should see a decline in inventory over the next six months based on historical seasonal trends. Learn even more about our local housing market: click here for the full July 2010 Harrisonburg & Rockingham County Real Estate Market Report. Do you have questions about this report, or about the Harrisonburg and Rockingham County real estate market? Or about your house? Or about a house you might buy? Be in touch . . . Scott Rogers \| 540-578-0102 \| scott@HarrisonburgHousingToday.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Sep 10, 2010 (unless otherwise noted).
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@cbfunkhouser.com
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Close Comments 2 Comments so far . . . Jeremy Hart: Scott - always interesting to read your reports ... thanks for sharing what's going on in your area. I haven't gone in depth through the whole report, so apologies if this is covered somewhere, but to what do you attribute the stronger Harrisonburg market to? As an agent in a similar college town, it's interesting to look at how the two markets compare and contrast. What do you think is bolstering your market right now, and what do you think is a threat to it? July 21, 2010 5:12 pm Scott Rogers: Jeremy, Good question. It's likely not one single factor --- but it starts with a diverse local economy with very low unemployment. We also have a lot of growth in the area despite the economic challenges -- with capital development projects at James Madison University and Eastern Mennonite University, as well as the very recent completion of our new regional hospital. So, things are a bit slower in the New River Valley? July 26, 2010 2:28 am Add A Comment: Name (required) E-mail (required, not published) Website Prove you're not a comment-spammer . . .