Lake of the Woods, VA Real Estate Trends- October 2014
A GREAT time to BUY or SELL a HOME is NOW
It finally appears that last month’s real estate numbers demonstrated what we and others have been saying all year- It is a GREAT time to make a real estate transaction for both the buyer and the seller. According to Real Estate Business Industry (RBI) the potential numbers that were keeping realtors, mortgage companies and anyone else associated with the real estate industry perplexed as to why they had not materialized, were finally realized in October.
With high inventory of houses on the market, home prices remaining low, and interest rates even lower, one would expect a robust buyer’s market. Unfortunately the rather tepid numbers thus far in 2014 revealed that was not the case. Clearly relatively stagnant wages for most, many individuals still upside-down from the 2006 crash, and uncertainty about the state of the economy has kept most on the sidelines. The markets in Lake of the Woods, and the surrounding Fredericksburg area showed some activity, but nothing that would approximate what usually occurs with such low interest rates. In fairness, many chose to re-finance and re-model; a particularly attractive option especially in desirable locations.
However, hopefully October is the precursor of an improved real estate market as we move towards 2015. According to RBI some key home statistics were extremely strong. Most impressively total dollar volume increased 75% from October 2013. Similarly the average home price for those sales increased 24%, and units sold increased 41%. Obviously in a small market like Lake of the Woods, one must be careful to not get overly excited by percentage increases, especially when the net unit increase of homes sold was only seven. If your home was one of the seven; however, it’s Great news! With new pending contracts and closed sales showing an increase from a year ago, as well as from the month of September, October wasindeed a banner month.
Average Days on the Market is at a 5-year low, Average sold price to Original listed price is at a 5-year high, and five of the 17 homes sold were above $400K. Unfortunately homes priced in the $300-399K range remain a tough niche market.
The best news is that not only did sellers benefit, but it should be noted that buyers continue to benefit getting a home for a fair price with historically low interest rates.
Please Visit our Real Estate Statistics page for a great review of the market.
So far we’ve continued to be blessed with extraordinary weather this fall, so with inventory of homes nearing the 5 year low, interest rates incredibly favorable and homes selling to close to asking price, there is no better time to put your house on the market. Real Estate is after all driven by the “invisible hand”, so take it from Adam Smith NOW is a GREAT time to make the move. Whether you are considering buying or selling a home call the Ostlund Team, and allow us to share our synergy of teamwork to help you achieve your real estate goals.
The OstlundTeam will work “OverTime” for you! Call Penny at 540.903.9372 or Charlie at 540.903.7796. We guarantee you will receive “Exceptional Service, with a Personal Touch”!