Are you planning to purchase lake real estate in the next year? If so, don't wait for the bottom to get here. Many national financial advisor's are forecasting a turn in the real estate market and a national real estate market recovery in 2008.
We are urging all of our buyers not to wait until we see the market turn. Being a buyer in today's market is smart for many reasons.
The inventory is very plentiful. The Best it has ever been. That means there are many homes to choose from at great prices. With huge diversity in lake homes, that lets you find a much better home for your money.
Failing prices shouldn't scare you. The national average forecasts that prices will drop an average of 7.7% from their high in late 2005, greater in some cities and lower in others. Smith Mountain Lake property values have already dropped, and at a lower rate than the national average. I am recommending my buyers take that reduction into consideration when they make their offer. In today's *buyer's* market, my buyers are able to purchase a property up to 15% off an asking price that is already reduced considerably from our 2005 prices. These savvy buyers get a wonderful lake home to enjoy at a significantly reduced price. All on their terms, with great inventory to choose from.
When the bottom hits, it will get crazy. The number of buyers waiting for the bottom is phenomenal. We expect a six to nine month return to the buying frenzy we saw in 2005, where sellers are back in the driver's seat and happy to have multiple offers. Those buyers will be paying the premium prices for the most desirable homes.
Over the years, buying a lake house at Smith Mountain Lake has changed from a nice place to retire, to a smart place to invest money. Informed buyers are buying houses just as they invest in the stock market, buying low and selling high. make sure you get the very best investment you can. Buy while inventory is high, at the best price. As long as you hold onto the investment for a few years, you can't go wrong!
- Carol Myers, Principle Broker
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