First Quarter 2010 Smith Mountain Lake Update              March 31, 2010

WOW! What a winter! The lake area cumulatively received over 50 inches of snow. Typically, we get 8-12 inches in 3-4 snowfalls during the winter and it melts very quickly. The harsh winter made it difficult for clients to visit or to see property after they arrived. Now that the weather has turned warm, everything is exploding with wonderful color and new growth all at once making our area even more beautiful. We continue to believe that our market has bottomed out and improvement is on the way. There are numerous, incredible real estate investment choices at reasonable prices around our picturesque lake area to consider.

The attached graph and charts summarize our Smith Mountain Lake real estate market since 2001. After experiencing a modest pickup in sales activity the last half of 2009, sales slowed again during the IQ of 2010. The graph attached shows projected annual sales for all of 2010 based upon the IQ 2010 results. Some of the slowdown certainly can be attributed to the tough winter conditions along the entire east coast. Single family home sales volumes were slightly improved versus the IQ of 2009 and sales prices seem to have leveled off. Condo/townhouse sales volumes were up versus the IQ 2009 but sales prices continue to decline for this market segment. Sales volumes for waterfront lots declined significantly during the IQ 2010 but the sale of a $1,000,000+ lot drove the average sales prices up significantly in this segment. Overall, buyers are currently focusing on and buying properties in the lower priced groupings in all market segments. For example, homes priced at less than $600,000 and lots, condos and townhouses priced less than $400,000 represent over 80% of the sales volumes in each market segment. Inventories have increased significantly for single family homes since the start of the year with some previously listed homes coming back on the market.  We remain in a “Buyer’s Market” with properties that are aggressively priced experiencing the highest level of activity. Many properties are continuing to sell at or below county assessments so property pricing remains critical. If you would like accurate property sales information, contact Eric or Tom.

After analyzing the data, it reinforces that now is just a great time to consider investing in a Smith Mountain Lake property. Selling prices are comparable to pre-2005 values. Coupled with historically low mortgage interest rates, waterfront property is now the most affordable in over 5 years. There are excellent values in all priced segments of the market. If you are considering investment in a SML waterfront property, we will work to find you the best property available within your budget which exceeds your dreams. It you are considering selling your property, we will provide an accurate, realistic assessment of the current market conditions to best position your property for a timely sale. We always pride ourselves on providing unmatched service through high integrity, flexibility, knowledge, professionalism and client loyalty. We look forward to working with you on your Smith Mountain Lake Real Estate needs in 2010.     

Have a great Spring!

Tom Fansler, Realtor, ABR, GRI         Eric Fansler, Realtor, GRI

www.TEAMFANSLER.com

PRUDENTIAL WATERFRONT PROPERTIES

Toll free 1-800-858-4653             Web site – www.smlakeproperties.com

Tom’s Cell # 1-540-871-8355,   Email – numb1hokie@aol.com

Eric’s Cell # 1-540-871-8655,   Email – efans@aol.com