In general terms, the North American property market experienced a period of deep consolidation in 2017.
This was characterised by 12 months of slow yet moderate growth, set against the backdrop of a shifting composition of home-buyers and a post-election interest rate hike. Small, incremental house price increases are also expected for the next two years, with a cumulative rise of 3.9% expected to enhance property values without deterring first time-buyers from entering the market.
These trends were evident in regions across the U.S., including the picturesque and mountainous region of southwest Virginia. In fact, this market's growth is being driven by the Roanoke region, which has served as a core engine for the real estate sector throughout 2017.
The beautiful region of Roanoke (and southwest Virginia as a whole) has benefited from a steady economic climate during the last few years, with a defined lack of volatility leading to higher rates of consumer confidence. This has been most noticeable in the area's burgeoning real estate market, which has been a hive of activity in recent times.
In total, the number of properties sold in the region has increased incrementally year-on-year, while the average price of a home in Roanoke is $214,000. These figures highlight the affordable and desirable nature of properties in this corner of southwest Virginia, most of which are priced competitively between the $150,000 and $250,000 marks.
The increased average price of real estate is particularly impressive, as this has risen from $198,000 during the last 12 months. At the same time, the average number of days spent on the market for sold properties decreased from 129 to 109, revealing a healthy relationship between supply and demand within the marketplace.
While Roanoke may be the poster boy for property market growth in the southwest region, it's fair to surmise that house prices remain higher than their historical averages in every metro area across Virginia.
This has helped to identify Virginia (and particularly the southwest region of the state) as a key target for property developers and investors, both domestically and overseas. The rise of international investment in the region has also been empowered by the emergence of service providers such as GVA Worldwide, of course, as this has offered individuals access to a host of global markets and advisers.
For now, the value of property in the region also remains extremely competitive, which in turn creates a perfect storm in which investors can optimise their long-term gains.
