What we’re experiencing in our market is unprecedented. Never before have we had such a strong seller’s market while simultaneously experiencing such good buying conditions.
As of the recording of this video, we have 34 active listings in Harrisonburg and 173 in Rockingham County. We’ve talked a lot about declining inventory the past two years or so, so it’s time to put this into a historical context.
With just 34 active listings, based on last year’s annual pace of sales, if there was no new inventory introduced to the market, we’d sell out in the next month. Rockingham County isn’t much different—they only have a two-month supply of homes.
Speaking of unprecedented, let’s talk about rates. Last week, the rate for a 30-year fixed-rate mortgage dropped down to 3%. The last time we even got close to this mark was in 2016, and back then we didn’t have the extreme disparity between buyers and sellers that we do now.
When rates drop, affordability increases for most buyers, which creates a surge of buyer activity. If you’re a buyer, this means you’ll face more competition—especially with dwindling inventory. If you’re a seller, you’ll likely see a surge in showing activity and get offers quickly. With inventory dwindling to what I consider a dangerous level and buyer activity surging, now is the time to sell.
Buyers may be frustrated with the lack of supply, but there will be more, and knowing that rates are as low as they’ve ever been, it’s also a good time to buy. As prices rise and rates go down, affordability generally stays the same.
These conditions make it even more important to work with an agent who has their finger on the pulse of the market and has all the latest information. It may result in you being the one winning out in a bidding war, or generating a bidding war for your home.
If you have questions about our Harrisonburg market or need help buying or selling, don’t hesitate to reach out to me. I’d love to help you.