Market trends 2022: Real estate in Smith Mountain Lake
Nestled in the Blue Ridge Mountains, Smith Mountain Lake is a lovely destination that will astound you with its remarkable natural scenery and small-town charm. A popular site among tourists for its wide range of both water- and land-based recreational activities, Smith Mountain Lake is also where you’ll find some of the most sought-after real estate in Virginia.
TABLE OF CONTENTS
- Promising possibilities
- Virginia’s real estate market
- Where is Virginia’s real estate market headed?
- Smith Mountain Lake real estate: An overview
- Why move to Smith Mountain Lake?
- Invest in Smith Mountain Lake real estate today!
Promising possibilities
There’s so much you can do when you acquire Smith Mountain Lake real estate. You can (1) move here and – along with the rest of its roughly 22,000 residents – experience living the vacation life 24/7, where time crawls to a standstill. Or you can (2) turn your Smith Mountain Lake property into a home away from home for those times when you want to make great memories by the lake with family or friends. Still another possibility is to (3) convert your Smith Mountain Lake real estate into a vacation rental and take advantage of the booming tourist industry here. And, to make things more exciting, you can even (4) turn your SML property into a hybrid between a vacation home and a vacation rental. That way, you can use your Smith Mountain Lake home for a family getaway during off seasons and generate income by renting it out to transients during peak seasons.
Given these exciting possibilities, it’s not surprising that Smith Mountain Lake homes are considered prime real estate in Central Virginia. Whether you’re in search of a new place to move to or you’re thinking of extending your investment assets to include real estate, know that there’s no better place for your plans than this picture-perfect area right smack in the heart of the Blue Ridge Mountains.
With economic upheavals that are set to affect real estate on the horizon, there’s no better time than now to invest in a home for sale in Smith Mountain Lake. Let me, your friendly local Realtor Jane Horne, take you on an eye-opening reveal of what’s up with SML real estate, what’s to become of it, and why you should make your bid on the SML housing market now.
Virginia’s real estate market
There are several things about Virginia’s real estate market that you should know:
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2020 figures by the Virginia Realtors Association reveal that two out of three households in Virginia live in homes of their own. That’s 66.7% of total households in the state, compared to the 64.4% national homeownership rate.
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The last decade saw Virginia’s real estate market growing by leaps and bounds, buoyed by the strength of the leisure and hospitality and technical services sectors. Even when the rest of the country had to grapple with unemployment woes during the start of the pandemic, the Old Dominion stood steadfast and weathered the economic storm. Growth in the past 10 years was at 24.71% with approximately 2.23% upticks every year. Moreover, while other states took a hit from the pandemic, Virginia saw a 9.23% increase in median home values in those 24 months.
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Much like the rest of the country, Virginia’s scant housing inventory in relation to the huge demand for homes has been one of the major factors that led to the remarkable rise in home values here – even long before people became acquainted with COVID-19.
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A competition of sorts is occurring between home buyers and investors in the mad scramble for available real estate in the state. In the second quarter of 2021, one out of six homes, as well as a quarter of all apartments in Virginia have become the property of real estate investors.
The above-mentioned data are evidence pointing to a high-performing real estate market in the Old Dominion. However, there’s been a recent development that has eased the glaring dearth in the state’s housing inventory and presented a window of opportunity for home buyers wanting to snag property here: new listings.
Data from the Virginia Realtors Association’s May 2022 home sales report showed the following takeaways:
- There are 15,836 new listings, reflecting a 1.5% increase from April.
- There are 16,875 properties in the active inventory – a 9% increase from the previous month.
- While the number of active listings went up, there was a marked 5.6% decrease from 17,868 homes in the market during the same month last year.
- A total of 13,048 properties were sold in May, while 12,096 of them are still awaiting sale.
- A home for sale would take an average of 17 days in the market before it gets bought. This is 22.8% lower than May 2021’s average of 22 days.
The infusion of new listings to the housing inventory may spell good news for many home buyers who are eager to cash in on great returns from real estate in Virginia. However, still another factor is shaking the foundations of the real estate industry as a whole and is affecting home values, mortgage rates, and buyer behavior: rising inflation.
That said, real estate forecasts are now more toned down in anticipation of challenging times ahead.
Where is Virginia’s real estate market headed?
As mentioned earlier, the Virginia real estate market has already been seeing a scarcity in its housing stock which has led to rising home values. But never was it more pronounced than in 2021 when labor and supplies shortages brought about by the pandemic resulted in even fewer new construction to add to the inventory. And just as the economy was regaining its footing in the new normal, the supply further went south due to the ever-increasing demand for homes in Virginia.
Adding to the challenge is the response of the Fed to the rising inflation by hiking interest rates in the early part of this year. Mortgage rates, in turn, are seen to follow this development.
Given these challenges in the Virginia real estate market and everywhere else in the U.S., analysts and observers predict a slowdown in activity this year compared to the previous year.
Virginia Realtors note, though, that even with the slowdown, the local market will still register a price increase among homes for sale here – although not at the same stratospheric levels as before. They are still expecting prices to rise by 4.1% this year or half of the reported 9.4% increase last year.
In terms of migration, the reopening of the economy is bringing people back to urban spaces. However, those who have embraced the concept of remote work will continue to look toward suburbs that offer spacious living quarters, modern comforts, and easy access to urban areas. Thus, they turn to places like Smith Mountain Lake.
Smith Mountain Lake real estate: An overview
As with the general state of the market in Virginia, the Smith Mountain Lake real estate market has been quite busy, as well. A lot of buyers have been looking at waterfront properties like single-family homes, condominiums, and townhouses. There are buyers who are looking into purchasing waterfront lots as well.
In general, these properties don’t stay listed for long. That’s why you’ll want to move quickly to get your very own waterfront property with gorgeous views of nature at SML.
Here’s a look at the average time SML properties stay in the market:
- Condos and townhouses: 11 days
- Single-family homes: 41 days
- Lots: 509 days
There’s a property in SML for every budget, from homes listed at around $500,000 to sprawling estates costing more than $7 million. The median selling price for properties in the area is a little more than $500,000.
Check out the whole range of towns, cities, and neighborhoods of note within a 40-mile radius of the lake here.
New development
There are also new developments in the area, offering more properties for sale to interested investors. Most recently, SML saw the development of South Harbour, a property built on a lot formerly known as The Lakewatch Club.
Located on Dudley Amos Road, this new community is set to open a whole new selection of homes and lots to add to SML’s housing stock. Most of the properties located inland have sizes ranging from 1 to 2.5 acres while 10 of them will constitute waterfront cottages with an average size of half an acre.
The SML investor’s edge
Investing in real estate in Smith Mountain Lake is a great decision for the wise investor, especially since the majority of available properties here are lakeside properties. Having easy access to the lake’s waters holds a multitude of health benefits for those living there. Living in a home overlooking the lake is also a dream shared by many people, and this is why these homes generally have a higher value.
Waterfront properties are also considered rare finds. Everyone knows that the rarer they get, the higher their price tag. So, if maintained well until resale, this asset assures a windfall in returns.
Just last year, the value of waterfront properties in SML was found to be 51.2% higher than the area’s current tax assessment. Some properties also tend to sell for more, even 100% higher than their original selling price. Imagine how high the value of your waterfront property will be over time.
Should you decide to invest in a property in SML now, no economic upheaval or market slowdown can stop the increase in its value as the years pass. With a good agent to back you up, not only will you be assured of generous returns on your investments when you decide to sell but you’ll also be able to conclude the process at the soonest possible time.
Why move to Smith Mountain Lake?
Locals will readily tell you that SML is the best place for waterfront activities but there’s much more to the place than its famed lake.
Accessibility
While it offers a quaint small-town vibe, SML is not far from the conveniences of urban living. You have easy access to several key cities like Roanoke or Lynchburg via main arteries like Highway 116 or Highway 29. You’ll get to your desired destination while enjoying scenes of the countryside.
If you need to fly out, the nearest airport from SML would be the Roanoke-Blacksburg Regional Airport which will only take less than an hour’s drive northwest via the I-581. Meanwhile, further up north is the Raleigh-Durham International Airport which is approximately 120 miles away.
Good schools
Families with school-age children will be happy to know that you can find quality education for your kids in SML. Here are some of the best public and private schools in the area:
- Burnt Chimney Elementary School
- Dudley Elementary School
- Moneta Elementary School
- Snow Creek Elementary School
- Windy Gap Elementary School
- Huddleston Elementary School
- Goodview Elementary School
- Rocky Mount Elementary School
- Glade Hill Elementary School
- Lee M. Waid Elementary School
You’ll also find several top-ranking universities and colleges near the SML area.
Land-based activities
Take part in Smith Mountain Lake’s bustling art scene by attending free concerts, exhibitions, and plays, all featuring local talent. There are many book clubs, garden clubs, and bridge groups, as well, so it’s easy to find one that will suit your interests. You can even take time to participate as a volunteer in civic activities that not just enrich the community but brings together people of similar interests.
Sports buffs and active individuals can stay fit and in the game in SML, especially with the abundance of pickleball and tennis courts here. However, SML is particularly famous for its lush golf country clubs and public golf courses that appeal to those who love the challenge of the sport.
Water-based recreation
Smith Mountain Lake’s main attraction, of course, would be the activities in and around the lake’s crystal-clear waters. Efforts made by the area’s volunteers help keep these waters clear. The lake is also constantly being checked for clarity, algae, and bacteria.
Those who seek adventure can try out swimming, wakeboarding, fishing (the waters here are famous for bass and stripers), or going on sunset cruises while those who’d rather partake in a more relaxing activity can simply enjoy the view while lounging in their own boats or on their waterfront docks.
Boat owners can dock their vessels at any of the marinas scattered along the lake’s coast then head out toward land for dining and entertainment at local restaurants in the area.
The townsfolk
But perhaps the biggest factor that makes people decide to stay in Smith Mountain Lake is the feeling of being at home with the locals. They are friendly, accommodating, and will waste no time helping newcomers adjust to their new life in SML. This is definitely something to look forward to if you’re planning on moving to SML soon.
Invest in Smith Mountain Lake real estate today!
If there’s anything that the current real estate market trends in SML and in Virginia in general tell us, it’s that today is the best time to invest in a property in this high-value area. With a strategic location that boasts attractive views of nature, a nurturing community of hospitable locals, and properties that are expected to increase in value, Smith Mountain Lake is your best bet for an informed real estate investment and for a new lease on life far from the stress of the city.
To make a successful bid in prime Smith Mountain Lake real estate, make sure to work with a professional whose expertise in the area is unsurpassed. You’ll need someone with years of experience in the industry but who also has that personal touch for every client they serve.
Here to cater to your real estate requirements in Smith Mountain Lake is yours truly, Jane Sullivan-Horne. Working under the prestigious Berkshire Hathaway brand in real estate, I’m the Realtor to help you in finding your next home in Smith Mountain Lake. Call me at 540.493.1690 or 800.858.4653, or send me a message here.
