Luxury Smith Mountain Lake property trends: Q1-Q3 2022

Located along the Blue Ridge Mountains of Southwest Virginia, Smith Mountain Lake is an exciting and popular lakeside community for homebuyers to explore. With scenic natural surroundings, picturesque lake views, upscale communities, and laid-back atmosphere, Smith Mountain Lake has been a top choice for homebuyers, real estate investors, and retirees for years. It is also one of the most popular vacation destinations for many Virginia locals and visitors from neighboring states.

The opportunity of owning a luxury lakefront real estate surrounding Virginia’s second-largest lake attracts buyers from all over. With over 500 miles of shoreline, buyers are looking to find a lakefront Smith Mountain Lake luxury property that perfectly caters to your needs and lifestyle.

LUXURY REAL ESTATE PROPERTY TRENDS FOR 2022

If you are looking to purchase a luxury home in Smith Mountain Lake, it will be well worth your time to know the latest trends in the national luxury real estate market. Keep in mind that these trends are generalized in order to provide the big picture, but the information can serve as a great springboard for what to expect in any given local market. This can be especially helpful for buyers who are originally from out of state.

1. Luxury real estate continues to be red hot

The number of luxury homes sold throughout the country in Q1 and Q2 of 2022 matched the incredible sales numbers of 2021. Not only was volume on the rise but prices rocketed in many areas around the country.

How did this happen? According to reports, the affluent population–defined as people with a net worth of $5 million or more–is growing, and they are influencing the real estate market. Despite the challenges of the global pandemic and prevailing economic issues, the affluent population in the U.S. actually grew by 25% in 2021. Experts point to stock market gains, increased savings, rising home equity, and the crypto boom as factors that spurred this growth.

With their newfound wealth, the latest members of the affluent population now find themselves with enough equity to move up to the luxury real estate market-and this is something happening all throughout the United States. As such, the demand for luxury properties or the top 10% of any given market has increased exponentially.

2. Interest in secondary markets is rising

Secondary markets like Denver, CO, Smith Mountain Lake, VA, and Raleigh, NC have all drawn the attention of all this newfound wealth. For the established affluent population, these secondary markets have become attractive locations for the purpose of investing in real estate. For those who found themselves in this new demographic, secondary markets serve as fantastic places for “entry level luxury properties”. These two reasons become especially obvious when comparing the prices of luxury houses for sale in secondary markets and in primary markets like New York or Los Angeles.

Of course, price isn’t the only factor that has led to this emerging real estate trend. Personal preferences and definitions of luxury have evolved over time. These changes have redefined what buyers are looking for in these homes. This has led many buyers to naturally gravitate toward what luxury homes in secondary markets provide which primary markets are unable to offer.

3. Multiple home ownership is on the rise

It wasn’t too long ago that many people were reluctant to even entertain the thought of buying a second home. This sentiment drastically changed in the wake of the pandemic. With many offices opting to enact work from home policies and other flexible working arrangements, many buyers felt that purchasing a second home or a vacation property was a fantastic investment. After all, these affluent buyers were now free to move between the properties they own without having to worry about taking time off, or having to change jobs. In some cases, people who have modest homes in the city they are based in are choosing to purchase a luxury second home rather than upsizing to a luxury home within their area.

The choice to invest in houses for sale in Smith Mountain Lake is not limited to buyers living several hours away. Fluctuating market situations throughout the United States has encouraged many affluent buyers to expand their search for vacation homes outside their home states. In the case of Smith Mountain Lake, it isn’t uncommon to see buyers whose main residences are located in North Carolina, Maryland, or even Florida.

SMITH MOUNTAIN LAKE REAL ESTATE MARKET UPDATES

While many of the national trends have certainly affected the local market, there are a number of factors that make Smith Mountain Lake different compared to other locations. Prior to looking at listings, it’s best for buyers to familiarize themselves with the latest local real estate market updates and trends:

1. Luxury real estate inventory continues to lag behind demand

By the end of Q3, the Smith Mountain Lake area led all lake properties in Virginia in terms of the amount of homes available. Despite leading in this aspect, however, Smith Mountain Lake is still facing an inventory deficit against the current demand. This isn’t all too surprising given how many luxury homes in the area are treated as vacation homes and retirement investments.

Sellers who end up listing their homes understand the unique circumstances of the Smith Mountain Lake luxury property market. Most sellers are in no hurry to offload their properties, often willing to sit on their homes for longer while waiting for the right bid or even pushing buyers into a forced bidding war. In short, Smith Mountain Lake closed Q3 as a definitive seller’s market.

Currently, many of the construction efforts in the area are geared toward other property types. Although there is a concerted effort to build more residential properties, many of the homes scheduled for construction don’t exactly fall under the luxury lakeside real estate category. All things considered, buyers looking at houses for sale in Smith Mountain Lake should be prepared to open their bids at listing price or slightly higher.

2. Prices have hit record highs, but are still great deals by comparison

High demand and low inventory continue to drive prices up. Year to date, the average sale price for a single family waterfront property hit $1.06 million. This is a sizable uptick from the $952,000 average sale price recorded in 2021 and the $727,000 average sale price from 2020. Keep in mind though that some of the more sought after luxury homes can easily go for anywhere between $2 million and $4 million.

Although these luxury house prices seem high, the figures are actually considered fantastic value when compared to other popular luxury lakeside real estate markets. For example, luxury homes located in Lake Michigan come with an average price tag of $6.35 million. For an even starker comparison, luxury homes in Lake Austin reached an average of $12.92 million.

Real estate experts and analysts claim that It’s unlikely prices will drop as we approach the end of 2022. Overall, real estate markets across the nation have been stubborn, with prices continuing to soar amid mortgage rake hikes. As such, buyers who can afford to enter the market right now should act quickly since waiting too long may only lead to being priced out by inflation.

3. Buyers going to extremes to secure their dream lakefront home

Historically, luxury homes tend to move slower than traditionally priced homes. This was a trend that could be observed throughout the U.S. However, low mortgage rates and shifts in lifestyles spurred an unprecedented demand for luxury homes throughout the nation in 2021 and for most of Q1 and Q2 of 2022. Though the rate hikes implemented by the Federal Reserve in mid 2022 slightly dampened buyer enthusiasm, the demand for luxury homes in popular markets is still high.

In Smith Mountain Lake, realtors share stories about the lengths some buyers are willing to go just to secure their dream luxury home-especially when it comes to a beautiful lakefront Smith Mountain Lake property. Some buyers have placed bids as soon as certain properties were listed on the market. Other buyers have even gone so far as to place bids without even seeing the luxury property firsthand. This is mostly because these highly desirable lakefront properties don’t often make their way onto the MLS. Owners tend to hold onto their properties for long stretches, sometimes even decades. As such, buyers are doing whatever they can to snatch up a property before someone else beats them to it.

Naturally, such aggressive buying strategies should be considered with extreme caution. However, it is a good idea for would-be buyers to know what others are willing to do in order to secure luxury real estate in Smith Mountain Lake. Homebuyers and investors should be prepared to move quickly if a property that interests them makes its way on the market.

WHY SMITH MOUNTAIN LAKE HOMES ARE DESIRABLE PROPERTIES

It’s no secret that houses for sale in Smith Mountain Lake are among the most desirable lakefront properties in the country. Smith Mountain Lake is one of Travel + Leisure Magazine’s Seven Best Destinations to Buy a Lakefront Home in the U.S.

The reasons why Smith Mountain Lake luxury homes are so popular among homebuyers extend beyond the idyllic lakeside living offered by the communities. Some of the best reasons why homes here are so desirable include:

Relatively low cost of living despite being a location for luxury properties

First off, the cost of entry is incredibly affordable, even if you are looking at luxury properties. Second, unlike in most metro areas, the prices of utilities and essentials in Smith Mountain Lake are low. Smith Mountain Lake also has a well-developed commercial scene with many convenient groceries, restaurants, and retail stores in the area. This means that residents don’t have to drive all the way to a big city to purchase essentials, which is incredibly convenient, and gas and time saving .

Close proximity to urban areas

Smith Mountain Lake offers residents quick and convenient access to a number of large cities. For starters, Roanoke, VA and Lynchburg, VA are both less than an hour away by car. Looking to travel interstate? Raleigh, NC is just a two-hour drive away, while Washington D.C. is an easy four-hour drive via US-29 or I-81. Taking all of these into account, Smith Mountain Lake offers its residents blissful lakeside living while also providing easy access to the attractions and amenities found in big cities.

BEST SMITH MOUNTAIN LAKE NEIGHBORHOODS FOR LUXURY HOMES

The Waterfront

Spanning over 750 acres and sporting 8.5 miles of gorgeous shoreline, The Waterfront is a fantastic country club community that should be at the top of your search list. It is best known for its 22,000 square foot clubhouse, aptly named The Waterfront Country Club, that boasts an Olympic-sized swimming pool and an 18-hole PGA Championship golf course.

Park Place

Park Place is one of Smith Mountain Lake’s most prestigious waterfront communities and one of the best neighborhoods for luxury homes. The 138-acre community features a large number of custom-built luxury homes intermingled with the surrounding hardwood forest. Lots here are large, allowing buyers to build personal docks for their boats.

The Water’s Edge

Another country club community, The Water’s Edge is located on a peninsula along the lake, making it a prime location for luxury waterfront real estate. Residents of the neighborhood also gain membership to the exclusive Water’s Edge Country Club which features an 18-hold PGA Championship golf course and 75 acres of horseback riding trails via the Equestrian Center.

South Harbour

South Harbour is a gorgeous 100-acre residential community. More than half of the homes here sit on prime waterfront lots. Privacy is a big factor in the community as the majority of the homes here sit on lots ranging from 1 to 2.5 acres. A landmark observation deck, which offers beautiful panoramic views of the area, can be found at the highest point of the community.

Waverly

Sitting on 130 acres of gorgeous lake property, the close-knit Waverly community is one of the best places to live in Smith Mountain Lake. Homes here are custom-built and the community still has a number of development lots available if you prefer to construct a luxury waterfront home to meet your exact needs. Buyers who dream of making the most out of the lake will be happy to know that houses here have private boat docks. The majority of homeowners are year-round residents.

WHY YOU SHOULD WORK WITH A LUXURY REALTOR

While it is possible to purchase luxury real estate on your own, savvy buyers will know that it’s best to work with a REALTOR who specializes in luxury real estate. Working with a REALTOR to purchase a luxury Smith Mountain Lake property comes with a number of advantages, including:

1. You get better deals on luxury homes, especially waterfront properties

Experience brings good judgment. Luxury REALTORs should have a wealth of experience when it comes to high-end waterfront properties, which helps them identify whether certain homes are good deals or not. Armed with this knowledge and experience, your REALTOR is able to better represent your best interests at the negotiating table and secure a better deal on luxury properties. Similarly, a REALTOR can help you steer clear of homes that do not fit the bill or simply do not meet your wants or lifestyle.

2. They spot potential problems ahead of time and help you avoid them

From paperwork issues to problems with a home’s structural integrity, a REALTOR knows how to identify the first signs of trouble. Given how pricey luxury lakefront homes can get, the last thing you want to happen is for a deal to fall through due to issues that could have been avoided early on. Even in the face of unexpected issues, a REALTOR will likely have experienced dealing with such problems in the past so they know what steps to take to overcome the issue.

3. They can find privately listed luxury homes on your behalf

Not all luxury homes find their way onto the Multiple Listing Service. In fact, some luxury homes will be privately listed. This means that these luxury homes are advertised via word of mouth between REALTORS. Having access to these homes for sale is a significant advantage for buyers simply because a private listing draws less attention, which may mean you won’t have as much competition. REALTORS who specialize in luxury properties will always be in the know when it comes to privately listed homes, which means you’ll be privy to a market that only a select few know about.

FIND THE PERFECT HOME IN SMITH MOUNTAIN LAKE AND LIVE LIFE BY THE WATER!

If you are interested in buying a Smith Mountain Lake property, make sure you work with a luxury REALTOR. A good choice would be Jane Sullivan of Berkshire Hathaway Home Services Smith Mountain Lake Real Estate.

Working as a full-time Smith Mountain Lake REALTOR since 1986, Jane has had the privilege of helping hundreds of clients of luxury properties find a place to call home. Decades of experience in the luxury real estate market and always giving her all to provide a personalized VIP-level of service has helped her achieve an average of $10-$20 million in sales per year, making Jane one of the Top 3 REALTORs in Smith Mountain Lake.

For inquiries, please do not hesitate to call at 540.493.1690 or send an email here. Together, we can find the perfect luxury home in Smith Mountain Lake for you and your family.