The Lake Anna real estate market increased in sales this year compared to the same period last year. The key was more inventory entered the lake market giving buyers more options therefore increasing sales.
Here’s the breakdown according to the numbers: last year we had 98 homes sold by the end of July and so far, this year a total of 124 have been sold. Of the homes sold so far this year 51 were waterfront and 73 access. The average sales price for a lake access home during this period was $488,657. The maximum sold price was $885K and the lowest sales price was $ 210,000.
Of the 51 waterfront homes that sold, the average closed price was $1,174,129 and the highest sold price of this group was $2,275,000.
Land sales have also remained high over the past several years. So far this year we have had 84 lots sold at the lake compared to 71 during the same time last year. Of those sold this year, 25 were waterfront and 59 lake access.
Lots have become limited due to the rise in resale home prices. Many buyers have chosen to build and avoid remodeling. Local builders are living the dream and luckily buyers have many custom builders to choose from at the lake.
One of the contributing factors in the boost in real estate sales and rising home prices at the lake over the past several years is a direct result when several travel magazines and a rental management company ranked Lake Anna in the top 10 best places to buy a “beach” house. Then, we were also included in the top 25 places to buy a vacation home.
The was a result of the rental management company’s noting the capitalization rate on the return of investment regarding vacation rentals at the lake.
According to the vacation home rental companies a waterfront homeowner at Lake Anna can make an average of $81,000+ in yearly rental income, which equals a capitalization rate of approximately 12.2%. Those articles created a buying frenzy for experienced investors and those wishing to break into the market.
The biggest and undesirable side effect of this movement was having late evening vacation partiers next door to a full-time resident, which was an interruption to the peace and tranquility that lakers have been accustomed to.
Many of our small family communities were scrambling to make new rules for the short-term rentals within these communities. In some cases, they voted to stop short term rentals all together.
We have many full-time residents now, unlike the early days, so If you are considering purchasing at the lake for investment or a family home, you need a realtor that will explain and provide research for you on each community to make sure it will work for your specific situation.
I have seen many sales at the lake over the past several years that were resold shortly after purchasing due to rental rules in the community. You can avoid this costly mistake by getting with a local experienced agent that is familiar with the various communities, avoiding this stress.
Lake Anna is still an affordable destination, and we have properties to fit most all budgets. Rates cooled a bit as 30-year fixed rates are currently in the mid 6’s, down from 7% earlier this year. Some are expecting rates to fall to 6% in 2025.
Thinking of building? Many lenders allow a one-time close on construction to perm loans saving extra closing cost, and an average of 12 to 24 months build times. Once again, a local experienced agent will have several lending contacts so you can shop around. I also recommend you do this prior to looking for a property so you are not shopping outside of your budget.
Author Libby Sandridge is a long time Lake Anna realtor that works at Berkshire Hathaway HomeServices – PenFed Realty. You can reach her at libbysandridge@comcast.net or 540-223-0350. See her homes at www.homesatlakeanna.com.
