Lake of the Woods, VA Real Estate Trends September 2014

The housing market in Lake of the Woods mirrored the overall nationwide real estate market found in most parts of the country during the month of September. Despite continued low interest rates, stabilized home prices, and a reasonable supply of listings, it still remains a buyer’s market. Dollar volume of sales dropped 8%, and total closed properties decline by nearly 20 percent. A bit of good news was that the 18 homes that sold in Lake of the Woods showed a 12 % decline in the days on the market (DOM) but still exceeded the past 3 month average. The average home sales price rose by 12 percent. Unfortunately for those with higher priced homes, only three homes sold in the $500-$1 million range and three homes sold that were priced between $300-$399K, which has remained a difficult niche in the Lake of the Woods market. Half of the remaining homes sold for under $200,000, a segment of the market that has been relatively robust.
Despite the market indicators that point to a market poised to recover, there are some limiting factors limiting individuals qualifying for loans, or simply opting to rent. The rental market remained solid. No surprise, as no longer does one assume that home equity is assured and renting eliminates the possibility of being upside-down on a mortgage. Perhaps more importantly is the fact that many buyers enter into the home buying process with few liquid assets, making a request for seller closing cost concessions the norm. Rather than passing judgment on the younger generation’s commitment to frugality and savings, there are several plausible factors that make saving difficult.
With the technological revolution, many expenses incurred by all of us are ubiquitous and expensive. Cable TV bills, cell-phone plans, devices needed to successfully negotiate our wired-world are a necessity of life, which none of my generation had as “fixed” expenses. These costs easily exceed $500 per month. For those in the early stages of their career, that cuts into the possibility for saving, and limits the debt to income ratio required for securing a loan. This issue limits what was traditionally the impetus driving the real estate markets.
Hopefully, the pent-up demand will pick up in the last quarter, interest rates will continue their historic low levels and increased demand will heat up the market for a strong close to 2014.
If you plan on buying or listing a home which happen to both be great options right now, a call to the Ostlund Team, will connect you with one of the most experienced top-producing agents in Lake of the Woods. Penny is one of the top Coldwell Banker agents in the entire state, whose knowledge of the Lake of the Woods community is unsurpassed. Please contact Penny at 540.903.9372 or Charlie at 540.903.7796, and allow the “synergy of teamwork” to assist you and all of your real estate needs.