I’ve spent many years working in the real estate market in my area. I’ve lived through times of boom and times of bust. The last few years have proven to be great for the local real estate market which is a clear indicator of a good economy. With winter just around the corner, it is time to take a look back on this year’s real estate market in Lake Anna.
Home Sales in 2018
According to the MLS (Multiple Listings Service), the housing market seems to be in an uptrend with home sales in the area being slightly higher in 2018 compared to 2017 if we include those properties that are currently under contract.
2017 Sales Stats:
- 238 homes sold
- 110 waterfront homes sold
2018 Sales Stats:
- 245 homes sold
- 95 waterfront homes sold
Assuming all of the deals that are still under contract close, that will be 7 more homes sold this year than last year.
Lot Sales in 2018
The same cannot be said about the land market, however. Last year 112 lots sold which included 33 waterfront lots. This year 88 lots sold including the 10 still under contract, 38 of which are waterfront. This means there were 24 fewer lots purchased this year compared to last year.
What Can We Expect for 2019?
Good news! Home sales are expected to rise in 2019 due mostly to home buyers feeling the pressure from the higher interest rates and the expectations for them to rise even higher. Interest rates are currently trending anywhere from 4.5 to 5.5 percent depending on the credit score of the buyer, loan time, and the lender. According to Gene Newman, a Senior Loan Officer at Fulton Mortgage, many many buyers are going with the 10 to 15-year Adjustable Rate Mortgages for the lower interest rates. Another important thing to note is that interest rates can be a smoke screen in regards to the real cost of a loan. If you are planning on taking out a mortgage, you need to find out all of the costs involved in the loan up front. Gene pointed out that you can have a slightly higher interest rate and actually save money to do there being fewer fees involved, more points, or reduced closing costs involved in some loans. Interest rates are still expected to climb in 2019, but who knows, it is definitely a gamble when trying to predict what the Federal Reserve will do. The outlook for the housing market in Lake Anna looks bright! With a very healthy inventory to pick from, still great interest rates, and the easing of underwriting, it is a great time to buy!
Tips for Buying Property in Lake Anna
As always, I want to leave you with some helpful tips for buying in the Lake Anna area.
- Choose who you do business with carefully! Lake Anna has many excellent local agents to choose from so do your homework and talk to a few. A local agent is always your best choice because they know the area well and can help you find exactly what you’re looking for.
- Explore your Mortgage Options. Ask your agent who they recommend. I know I have a go-to local loan officer that is experienced and always helps my customers get the best bang for their buck!
- Take your time with smarter home searches. A local real estate agent can assist you in setting up a local search directly from the MLS that serves Lake Anna and will save you time, reducing the stress of endless web surfing.
- Ask about any deed restrictions, especially when buying lake-front or water-access homes with a boat slip. This is one of the main issues people have when their agent isn’t from the area and doesn’t know those little things that cause pain in the long run…
- Finally, NEVER EVER skip the home inspection, even on new construction! Someone who understands the nuts and bolts of a house can tell you exactly what you’re getting into and potentially save you thousands of dollars.
Lastly, I want you to consider the option of buying a fixer-upper home vs a newly remodeled home. Sometimes purchasing a fixer-upper and making it your own can save you money and allow you to have the home of your dreams. We have many high-quality local contractors to choose from that can help you make your new home exactly the way you want it. So, don’t be afraid to get some advice on what that diamond in the rough can turn into!