Harrisonblog

We turned the page on the calendar last week to December, which means the monthly Market Report is delivered to you again! Last month, we reported that October not only showed somewhat favorable results in sales, but also in contracts. As fall begins to fade away and winter looms in the distance (not to mention the busyness of the holiday season), we find ourselves in a sort of slow-down in terms of real estate. This is not to say properties aren’t selling… they’re just not selling as quickly. Lets take a look at November’s numbers:

[Click any image below to view larger version]

The first number to look at is the year-to-date sales percentage, which is +2.3%. YTD sales this year versus last year have increased! (Last month, the YTD sales percentage had an increase of 2.7%… so because it is lower this month, we see that slow-down.) It is also important to note — though not really positive news — that average price per square foot (AKA home values) decreased 7.0% this year compared to last year at this time. We’re still seeing home values fluctuate a bit in order to find its balance.

Above is a simple graph showing the number of sales as that stat has progressed throughout the year. November sales were higher than October’s.

Remember last month when we introduced some new charts? Above is one that shows average sales prices versus the number of properties sold from January 2009 through November 2011. The November numbers are highlighted.

Above you’ll see another simple graph showing the number of residential property sales versus the number of homes that went under contract over the past 12 months. The fact that contracts are above sales proves that buyers are continuing to “shop,” and we should see most of those contracts turn into sales in the coming months!

Speaking of contracts, there were 76 in November, which is a decrease from last month by 9.5%. However, looking at the big picture, we see that YTD contracts are up by over 20%! The promise of sales to come!

November 2011 was a fairly strong real estate month here in the Shenandoah Valley. Buyers are buying, sellers are selling, and contracts continue to show strength. Stay tuned for more market trends and the December Market Report, right here on Harrisonblog.

Oh, Christmas Tree, oh, Christmas tree! There is usually much debate about whether a live Christmas tree should be donning living rooms this time of year, or whether artificial trees are better suited. I personally prefer live trees. You can’t beat the hunt for the perfect tree, getting in the great outdoors, the fresh-cut tree scent, and, well, vacuuming up after them. For those of you who are like me, you’ll be happy to know that there are several Christmas Tree Farms around the Harrisonburg area that offer the exhilarating experience of finding that “one” tree.

In no particular order:

Evergreen Christmas Tree Farm
2411 Flook Lane
Keezeltown, VA 22832
540-269-2691
evergreenchristmastreefarm.net
Offering hand-sheared Pine, Spruce, and Fir Christmas trees in their field, or choose from freshly cut Fraser Fir and Douglas Fir.  They also have live dug trees, and table top trees. They also have a farm devoted to growing taller trees (call for availability).

Heartland Enterprises Christmas Tree Farm (AKA Ostlund Christmas Tree Farm)
6876 Kieffer Road
Singers Glen, VA 22850
540-833-8605
ostlundchristmastrees.com
All trees are cut-your-own! Offering free hot cocoa in the spring house, a free ornament with each tree, a hidden candy cane tree in the field, a fantastic family photo spot, and they support the Blue Ridge Area Food Bank (bring 5 food items and receive a free bundle of boughs!). Abundant sizes and quantities of Norway Spruce, Scotch Pines, and White Pines.

Mountain View Farm
2155 Rittenour Road
Edinburg, VA 22824
540-459-5584
virginiachristmastrees.org
Offering free shaking and wrapping of trees, use of carts for hauling trees from field, use of handsaws, assistance as needed, plenty of convenient parking next to fields, and beautiful mountain views. They also have wreaths, swags, crosses, arrangements, and small gifts for sale.

Helsley’s Christmas Trees
210 Manor Drive
Edinburg, VA 22824
540-984-4903
virginiachristmastrees.org
Helsley’s Christmas Trees is located in the scenic Shenandoah Valley with a beautiful view of the Edinburg Dam, and if lucky, maybe even an eagle. The Christmas tree farm began in 1998 with the planting of Douglas Firs, Norway Spruce, and Colorado Blue Spruce. They grow their trees in an environmentally friendly manner by using pesticides and fertilizers only as needed. Trees range from 4 feet to 10 feet. Plenty of parking next to the tree field. Assistance cutting, carrying, and loading trees.

Hickory Hill Pines
138 Hickory Hill Drive
Fishersville, VA 22939
540-943-6587
hickoryhillnursery.com

Valley Star Farm
1104 Springfield Road
Luray, VA 22835
540-860-8040
valleystarfarm.com
Valley Star Farm has a wonderful selection of trees to choose from, including White Pine, Scotch Pine, Norway Spruce, Colorado Blue Spruce, Concolor Fir, and Douglas Fir.

Elf Christmas Tree Farm
6960 Artillery Road
Port Republic, VA 24471

If you know of any other tree farms in the area, please add to the list by commenting below!

**Image Credit: Hiking Artist on Flickr

December is just around the corner, which means shops have already dawned their windows with holiday decor, sweet Christmas music is playing in the background, and the annual festivities are winding up. This Friday (December 2nd) at 7:00 PM in Downtown Harrisonburg, the annual Harrisonburg Christmas Parade and Holidays on Main Street will be happening, and you won’t want to miss out! This tradition has been taking place in the streets of Harrisonburg for over 50 years. It is so popular that Santa himself makes an appearance every year!

More than the exciting parade, there are events that take place on Court Square, including a tree lighting by the mayor, caroling, carriage rides, Father Christmas, hot cups of cocoa, live music, and so much more. Take in the sights, sounds, and wonderful smells of the season this Friday!

Remember back in August when we posted about potential changes to the FHA loan limits across the nation, and how they wouldn’t really affect home buyers in the Shenandoah Valley? Well, good news came last week (for those that would have been or have already been affected) as Congress passed a bill that would restore the FHA loan limits back to their original amounts at 125% of the local median home prices — up to $729,750 in the highest cost markets. One difference, though, is that Fannie Mae and Freddie Mac backed mortgages are now at a limit of 115% of the local median home price — up to $625,500. These limits will expire in 2013.

According to the National Association of Realtors®:

The reinstated FHA loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families in 669 counties in 42 states and territories, where the average loan limit reduction after the reset last month was more than $68,000.

This bill will also provide some additional short term relief on the National Flood Insurance Program expiration date, extending it through December 16, 2011. The NAR is pressing Congress to take this time frame to make an effort in building a five-year plan for the National Flood Insurance Program. These short-term extensions just aren’t cutting it, and home buyers deserve better.

If you’ve never bought a home before, just thinking about it can be daunting. We know. We’ve all been first time home buyers before. It is important to know what you are getting yourself into before you make the decision to purchase, so here are 8 tips to help you get started [source of the 8 tips: HouseLogic].

1. Know thyself. Everyone is different. It is good to know going into the buying process what type of house you might like to live in, which neighborhood would work best for you (think commute times, location, whether or not its walkable, etc.), and whether or not you might be able to fix something up yourself. If you are handy, decide how much fixing up you’d like to do — a full renovation, or just simple repairs?
2. Research before you look. Make two lists — one would be features that are a must, and the other would be features that would be nice to have. (You’ll show this to your Realtor® later.) How many bedrooms and baths do you want? Do you like new construction or older homes? After you make your lists, search for homes online to find out if your expectations are realistic, and to see what is currently on the market.
3. Get your finances in order. This is essential. Before purchasing a home, you’ll want to go through your finances and figure out how much house you can and want to afford. What would you like your monthly payment to be? How much can you put down? Meet with a lender to discuss your options. (If you need recommendations for local lenders, let us know!)
4. Set a moving timeline. Sometimes buyers have to move at a very specific time, and sometimes it doesn’t matter. If you have to move sooner, you’ll have to be more active and aggressive in your home search. Talk to your Realtor® about realistic timelines for the local area.
5. Think long term. Are you planning on living in this next home for 5 years? 10 years? 25 years? If you plan on living in the home for many years, be sure your list of expectations/desired features will help you identify a home that you will still love in the long run.
6. Work with a Realtor®. Realtors® are really the best agents to work with in a home search because they invest hours upon hours in a day getting to know the local real estate market. They also adhere to a strict code of ethics. They know the neighborhoods, the history, the price ranges, and good ones will have an idea of where the market is going — even down to the neighborhood or area. Shameless plug: our team has been very successful in working with buyers and sellers since 2003. Call us today so we can meet!
7. Be realistic. Throughout this list of 8 tips, we’ve suggested being realistic. Working with a Realtor® will also help with adjusting your list of features to reality. Know your price point. Know your timeline. If you want to only live in a specific neighborhood and don’t look elsewhere, you might be missing out on a fantastic house that would fit your needs well. Look beyond your “borders” to see if something else might pique your interest and meet your wants and needs.
8. Limit the options you solicit. Buying a home is a big financial decision, so getting opinions from others might give you some peace of mind, but try to keep it limited to 2 or 3 outside opinions. Also, remain true to your list of needs, and leave some wiggle room on your list of wants.

There you have it. 8 tips to help you get started with your home purchase. If you are still on the fence about buying, please contact us to discuss your situation and options. We’d love to consult with you!

Looking for more? Take a look at our page For Buyers, or read more about buying a home.

Back in 2009, the Home Affordable Refinance Program (otherwise known as HARP) was born. This is a government-run program that allows home owners with Fannie Mae or Freddie Mac loans to refinance at a lower interest rate, even if their home is way under valued. HARP recently got a face-lift. It used to base qualifications on a 125% loan-to-value, but this criteria is now off the table.

In order to be eligible for HARP, one must:

• Have a loan backed by Fannie Mae or Freddie Mac (check with your lender or take a look at their individual websites to find out if you have one of these loans).
• Have a loan with a securitization date prior to June 1, 2009.
• Be current on payments for the prior 6 months and at least 11 of the most recent 12 months.
• Have not used HARP before. This is a one-time deal, folks.

The good news is that home owners who are current on payments but are living in a home that is way under valued can still refinance to get a lower interest rate. There is no more loan-to-value restriction! Note that this program is not intended to stop or delay foreclosures.

For a thorough guide to HARP 2.0 in layman’s terms, check out this article by Dan Green.

In September’s Market Report, we posted about the increase in sales over last year, and now in October’s Market Report, we’re happy to report that not only do year-to-date sales continue to increase, but the number of contracts also went up this month. An uptick in sales prices for October has spurred a less horrifying price difference from this year to last, too. Take a look at the October Market Report below, with a look at some fresh graphs we’ve developed. (More on that at a later date!)

[Click any image below to view larger version]

Sales. Sales are good for the local economy. It keeps money moving, and an increase in sales shows a sign of recovery. Sales from September to October were down significantly (-32.9%, to be exact), but that is to be expected. The fall and winter months often produce less sales than the rest of the year. The number we really want to keep track of is the year-to-date sales because it shows us the big picture. So, YTD sales has increased over 2010 by 2.7%. Yes, 2010 was a rough year, so it only seems natural that an increase would come this year. However, 2009 October sales were at 62, so we’re not too far off the mark.

Obviously, the peak selling season is spring through summer. Welcome to fall!

Above, you’ll see one of our new charts! This shows the average sales prices from January 2009 to present, and the respective number of homes sold during that time. Highlighted are the October stats.

Contracts give us even more hope. Contracts are like the promise of sales. Not every contract turns into a sale, but a good bit of them do, and the fact that contracts continue to rise shows us that sales will continue to rise. Sellers, people are still buying! From September to October, contracts have increased by 25.4%, but again, that is really not a true comparison. The true comparison is with YTD contracts, which increased by 19.02% since last year. Now as with sales, comparing to a bad year (2010) will almost always produce favorable results. So, see below for a comparison to 2009…

In October of 2009, the Harrisonburg area saw 76 properties go under contract, whereas last month, there were 84. While we have to be careful about comparing just one month to another, it is good see this number move upward this year.

Above is a simpler look at the year 2011 and how many contracts each month has seen thus far. October contracts match July’s!

Stay tuned for more market trends and the November Market Report, delivered here on Harrisonblog.

Recently at 120 North Main Street in Bridgewater, Randy’s Do It Best Hardware held a grand opening, serving up free hot dogs and beverages, and offering many items on sale. The new hardware store has taken over where the old Dickson’s Drug Store used to be. According to the store manager, Christian Herrick, lawn and garden items have been the most popular so far.

Randy’s Do It Best is a local chain (other locations in Timberville, New Market, and Woodstock) that offers customers with specialized service in helping them get exactly what they need. They work with customers to find the product or solution for whatever project they are working on. They also provide a wealth of experience and expertise from local contractors and “hands-on” training. Plus, they offer training and tips through websites, videos, and even webinars.

This is no ordinary hardware store. They’re on Facebook and Twitter, and were recognized in the National Retail Hardware Association for their blog!

It is amazing the difference a little percentage point can make in a house payment. Okay, so housing prices in the Harrisonburg area have increased over the past few years (take a look at these trends in more depth), but interest rates — even since January of this year — have dropped. Does it make a difference? YES!

The image below shows what national median home prices were back in January versus what they are now (according to the National Association of Realtors®), compared to the interest rates in their respective time line.

Even with higher prices, the average mortgage payment is lower now than it was just 8 months ago, simply due to a drop in interest rates — which are lower than ever, by the way. This is a decrease of $21.13 a month! Buyers would be able to save that money and use it to buy an occasional fancy-shmancy coffee drink at Starbucks (or their coffee shop of choice), regardless of the fact that home prices are $11,000 more expensive, on average. Wow.

So the real question is this… why wait to buy when the deals are so good right now?

If you’re on the fence about buying, or are ready to start your home search, contact us or comment below. We’d be honored to help you!

EXCITING NEWS: The Kline May Companies are starting up a new property management company called Priority Property Management! Now Kline May customers and clients can find quality property management that provides the same attention to detail and customer service as the rest of the Kline May family of companies.

Priority Property Management will be operated by Roy Brooks, who has extensive backgrounds in accounting, home building, and managing his own properties over the past 10 years. He has a passion for the rental community, and with this, developed RentalMatchup.com, which has become a very valuable resource for local landlords and tenants.  This is a great fit for Kline May!

Are you a landlord looking for quality property management? Call Roy Brooks to learn about the services that are going to be offered — online rental payments, online record keeping (landlords can view their financial status at any time), and the ability for tenants to send maintenance requests.

Priority Property Management
Attn: Roy Brooks
contact@choosepriority.com
541 Acorn Drive, Harrisonburg, VA 22802
540-578-4974
www.choosepriority.com