2016 Lake of the Woods, Va. Annual Real Estate Report
There is no doubt that 2016 was an interesting year. From the presidential race to the Cubs’ World Series Championship, clearly it was a year of unprecedented events. Additionally, after a fairly robust real estate market in 2015, there was uncertainty how 2016’s housing market would perform. With continued historically low interest rates, which only showed increases late in the year, most local markets continued the upward trends.
In Lake of the Woods, 2016 posted a 6.37% increase in sold dollar volume, with increases in both average and median home prices with 5.48% and 7.14% increases respectively and fewer days on the market than 2015. However, in terms of units sold there was just an increase of two houses from 237 to 239 or a .84% increase.
In comparison to the greater Fredericksburg region, LOW saw greater increases in average/median sale prices compared to 2015, but the entire Fredericksburg region had double the percentage increase in total dollar volume and an increase of over 10% increase in units sold. This in part reflects the low inventory of homes offered for sale in Lake of the Woods which remained below 5 year averages.
The same pattern was reflected in the data for the Mid-Atlantic Region, where there was a 9.63% increase in total dollar volume in sales and 8.27% increase units sold, but relatively small increases in the average/median sales price. It is important to note that in 2015, Lake of the Woods saw much lower average home sold price increases than the overall Fredericksburg area, so over the two year period of 2015-2016, average home sold prices were similar.
Many real estate experts forecast for 2017 continued growth in the housing markets with interest rates and inventory continuing to remain relatively low and steady, and slight home price increases. Demand should increase as well, with millennials and others who have remained on the sidelines of home purchasers entering the market. Additionally, there is considerable uncertainty regarding general economic growth and potential inflationary trends pushing up home prices as the new Congress convenes. Additionally, with a new administration, there are indications of potential legislation loosening lending regulations and could open opportunities for those with less than stellar credit.
Wishing you a great 2017, and should you consider selling or purchasing a home this year, and would like to work with a Realtor dedicated to providing “Exceptional Service, with a Personal Touch”, please give the Ostlund Team the opportunity to earn your trust in representing you.