Often facts and figures dealing with real estate markets are presented with numbers that lack any comparative context, and therefore provide only limited snapshot of a particular housing market. The following information is presented so that any interested homeowner in Lake of the Woods can have a better perspective of the last five years of real estate statistics* at Lake of the Woods in comparison to the greater Fredericksburg area, as well as the Mid-Atlantic region.
These charts provided shows some key real estate categories, including Dollar Volume Sold, Average and Median Sold Price, Total Number of Properties Sold, Days on the Market (DOM) and the percentage relationship of Original List Price (OLP) to Sold Price. The Change columns represent the percentage change from the previous year.
Overall, examining the numbers for Lake of the Woods in 2015, the dollar volume increased nearly 20% from 2014, with an increase of nearly 25% in terms of homes sold with 237 closed sales compared to 190 the previous year. These increases surpassed the numbers for Both the Greater Fredericksburg Area (18% and 13%), as well the Mid-Atlantic Region (approximately 13% in each category).
Unfortunately, both the average and median sold price for homes in Lake of the Woods declined by more than 4%. This is not too surprising as Lake of the Woods saw huge gains in these two categories in 2014 (>15%). But the 2015 numbers for Lake of the Woods, lagged nearly 8% lower than the numbers for sold price increases for the housing market in both the Fredericksburg and Mid-Atlantic Regions. Additionally, although the average Days on the Market has been very stable for the past three years at 110 days, it still remains over 30% longer than the greater Fredericksburg area.
This next chart shows the number of homes that closed at Lake of the Woods, VA. each month over the past five years, as well as the number of sold properties in different price categories during these same periods. June is typically the busiest month for closings on home sales, and January and February generally have the fewest closings, as the contracts written in late November until early January are reflected. However, although the percentage changes from month to month may be large, the actual number of home closings reflects a market that is relatively busy throughout the year.
Clearly the number of homes sold in the various price ranges reflects that approximately 60% of the homes in Lake of the Woods, VA sell for between $150,000 and $299,000 reflecting the $210,000 median price, which is approximately $50,000 below the Fredericksburg region. Given the amenities available at LOW, our community is a great deal for buyers. Fewer than 4% of homes sales are those homes priced above $600,000 indicating that the market for high-end waterfront homes continues to be challenging for sellers of those homes. Much of this can be attributed to the general economic and consumer uncertainty, and clearly the construction on Rt. 95 the past few years made the thought of a quick weekend trip from the DC Metro area wishful thinking, and reduced the number of weekender purchases.
Generally numbers of closed sales each month will reflect the market activity in homes going under contract 30-45 days earlier.
However, since new government regulations governing closing disclosures TRID** went into effect October 3, 2015, one can expect future closing to take and average of 45-60 days depending on the lender, so there may be some slight shifts in closing numbers each month.
In summary, 2015 was a very good year for real estate in Lake of the Woods as the five year recovery in the housing market continues. With more new construction underway, improving employment numbers and expanded opportunities for telecommuting or alternate commuting options, there is reason to be optimistic for a great 2016! Look for our next post from The Ostlund Team describing factors that will potentially impact Real Estate in 2016.
* Source : Real Estate Business Intelligence, Inc. (RBI)
**TRID is an acronym which combines the TILA-Truth in Lending Act and RESPA-Real Estate Settlement Procedures Ac into the new “Know before you Own” rule deigned to protect consumers; T(TILA)R(RESPA) I(integrated)D(Disclosure)