Waterfront home sales show signs of slowing | Local News

Smith Mountain Lake homes are still in high demand, but the housing market may finally be showing signs of cooling after years of heat.

Sales of waterfront homes in Smith Mountain Lake have hit record highs over the past two years. In 2020, home sales peaked at the lake with 431 waterfront homes sold. In 2021, that number dropped to 327, which was still the second highest sales volume in 20 years.

Tom and Eric Fansler, estate agents for Berkshire Hathaway Home Services, said strong demand for waterfront properties over the past two years has led to many people quickly bidding on houses without seeing them before anyone can make an offer. .

Tom Fansler said people are still looking to buy in Smith Mountain Lake in 2022, but home buyers are being a bit more cautious before making a purchase. More uncertainty with inflation and the current economic climate appeared to slow home sales from the blistering pace of the past two years.

People also read…

“Obviously I think the market has cooled down a bit,” Fansler said.

According to Fansler, a listing for a $700,000 waterfront home recently took two weeks to sell after multiple viewings. He said a similar listing likely would have sold out within days a few years ago.

“It told us that people were a little more cautious and a little more demanding,” Fansler said.

Rising mortgage interest rates have impacted home sales in other parts of the country in recent months, but not in Smith Mountain Lake, according to Fansler. While rates have nearly doubled, he said most people who are in a position to buy a million-dollar waterfront home aren’t as concerned about mortgage rates.

Another reason for the slowdown in home sales may be due to the limited number of waterfront homes in Smith Mountain Lake. Fansler said the lake typically has 150 homes available for sale in a normal market. Currently only 40 houses are available.

The average cost of a waterfront home has also seen a dramatic increase over the past two years. The price of waterfront homes averaged around $600,000 for more than a decade until 2020, when it rose to $717,000. In 2021, it increased again to $916,000. Fansler said he expects the average price of a waterfront home to top $1 million in 2022.

While average home prices in Smith Mountain Lake saw a similar jump in 2006 and 2007 before housing marking collapsed, Fansler said he thinks the numbers are more “real” this time around. and that they were unlikely to drop significantly.

Eric Fansler said Smith Mountain Lake homes have likely been undervalued for years. Although part of the increase in house prices is due to the cost of materials and labor associated with building houses, he said much of it can be attributed to the fact that more people have discovered Smith Mountain Lake in the past two years.

Fansler said he expects the cost of waterfront homes to come down in the coming years as inventory eventually increases and outside factors begin to stabilize. It could, however, take several years, he said.

“I don’t think they’re going to come down as fast as they came up,” Fansler said.

About Mary Moser

Check Also

Warren Buffett Loves These 3 Real Estate Sectors: Should You Too?

Warren Buffett invests in a multitude of industries through his holding company Berkshire Hathaway (BRK.A …