The continued inventory shortage experienced by most regions of the country was evident in Lake of the Woods again in 2019. Listings increased only 6.4%, from 373 in 2018 to 397 in 2019, while closed sales were up 28.6%. New construction accounted for 30 of the 301 sales. The median sold price increased a healthy 8% year over year from $249,900 to $270,000.
Of the 301 total sales reported in 2019, only 5, or 1 1/2%, were either short sales or foreclosures. At the height of the distressed real estate market in 2010, a whopping 43% of all sales were either short sales or foreclosures.
So let’s look at our steady growth over the past five years:
In 2015, there were 247 sales, with 15% being distressed. Those total sales represented almost a 30% gain over 2014, and the median sales price was $210,000.
In 2016, the market was quite flat compared to 2015 in regards to total sales, which held at 243 with a decrease in distressed sales to 11.1. However, 2016 saw the median price jump to $225,000, a healthy 7.1% increase.
In 2017, there were 294 total sales, a whopping 21.1% increase over 2016 with only 5.8% being distressed. The median sales price climbed to $239,000.
Average days on the market (DOM), which is the number of days it takes from the time a property is listed until it goes under contract, has steadily declined from 127 in 2015 to 57 in 2019.
It’s also telling to note that a significant number of lots have sold in the past five years. From January 1, 2015-Decemeber 31, 2019, 184 lots exchanged, with 41 occurring in 2019, down from 55 in 2018. There simply aren’t that many lots left in LOW.
New construction has been climbing, as well. 2015 realized 41 new construction starts; in 2016, there were 28; in 2017, there were 30; in 2018, there were 34; and in 2019, there were 48.
In 2020, according to Freddie Mac and the Mortgage Bankers Association, mortgage rates are expected to stay within the 3.7-3.9% range.
The prognosis for 2020, as it was in 2019, is excellent! In LOW, there are 57 homes active on the market as of 1/14/2020. In January of 2018, there were 62. Low, stable rates and hopefully more inventory should propel us to experience healthy sales and appreciation.
Whether you’re looking for homes for sale in Lake of the Woods VA or Waterfront property in Virginia we are your Real Estate Advisors for Stafford, Fredericksburg, Spotsylvania, Locust Grove, Central Virginia, and Greater Virginia. Thinking of selling? In any market condition, “what is my home worth?” is the #1 question asked by home owners. If you wish to sell your home, it needs to be sold for top dollar and in a timely manner. Pricing your home accurately, Pat will partner with you to make the selling process so much easier. Get started today by calling us at (540) 388-2541 or contact Pat Licata.