The story below is from our May/June 2021 issue. For more stories like it, Subscribe Today. Thank you!
Lack of inventory, sellers market means strong offers for well-priced homes.
When COVID-19 hit Roanoke last March and businesses and schools shut down, real estate agents in the area weren’t sure what to expect.
“I thought everything would grind to a halt,” says Scott Avis, one of Roanoke’s top producers in real estate. While there was a brief lull, it quickly picked back up. So why have people been so keen to move in the middle of a pandemic?
“I think it’s a combination of interest rates remaining so low, and people being stuck at home and looking around and assessing their needs,” Avis says.
Tom Stover, an agent who has been a trusted name in Roanoke real estate for more than 50 years, echoed Avis’ assessment.
“People don’t usually buy houses in December unless they need to, that has always been the way it goes. But last December the phone was ringing, because COVID gave people the time to dream a little, and the interest rates are so unbelievably low, many people were able to afford that dream,” notes Stover.
The phones have continued to ring for the area’s top agents, but the real estate market data tells an interesting story. In March 2021, the median list price per square foot for homes in Roanoke was $130.85. In March 2020, when the pandemic hit, the median list price was $112.12 per square foot. So, a 2,000-square-foot house would have listed for $224,240 a year ago, but would be listed at $261,700 now, meaning that the seller would be looking for an additional $37,500 for their home.
While prices have been climbing, the number of available properties has been trending downward for the past year, meaning that buyers have less to choose from, and there can be stiff competition for desirable listings, often with multiple competing offers. That lack of inventory has created a strong sellers market, and has disappointed buyers who are ready to commit, but either can’t find the perfect home, or lose out in a bidding war.
“It’s a frustrating real estate market in that the inventory is so low,” said Avis. “It’s not that easy to find your buyers exactly what they are looking for, because there’s just not a lot out there.”
If you’ve been thinking of putting your house on the market, there has never been a better time. Here’s a look at a few of the hottest neighborhoods in the Roanoke area, and what’s driving buyers to these zip codes.
Cave Spring & Hidden Valley Area
There are many communities in this area of Roanoke County that are still convenient to amenities, while offering a level of privacy that can’t be found in most areas of the city. Stover, who most often assists with buying and selling in Roanoke County and Salem, mentions Hunting Hills, Sugar Loaf and Fairway Forest as neighborhoods that have enjoyed enduring popularity, though there are too many to name. Hunting Hills has a neighborhood country club, and Fairway Forest wraps around the Hidden Valley Country Club, offering swimming, golf and tennis enthusiasts a close-by retreat.
Those looking to build a new home have options in The Ridge at Fairway Forest and Old Mill Plantation, as well as the odd available lot in other established neighborhoods.
Cave Spring/Hidden Valley area values: Increasing
Selling forecast: Good
Grandin & Raleigh Court
The Grandin and Raleigh Court area, which is anchored by a charming street of restaurants, the Roanoke Co-op, several shops and the historic Grandin Theatre, has been one of, if not the, hottest neighborhood in the city, according to Avis.
“The demand for this area has skyrocketed,” he says.
The average home price in Roanoke is just under $300,000, so many homes in the Raleigh Court/Grandin price range fit nicely into that average home price range, though Avis says that the average home in Roanoke was selling for about $250,000 a year ago, so the “average” has gone up considerably.
Because of the demand, Avis says homebuyers are often widening the circle of where they’ll look—while they once may have only looked at houses that were walkable to the shops and restaurants or school, they’ll now consider something further out to find something that suits their price range.
Grandin/Raleigh Court values: Soaring
Selling forecast: Excellent
Old Southwest
The Old Southwest neighborhood has been undergoing a revitalization for many years, with families moving into historic homes and renovating them. The strength of the current market and the lack of availability in some neighborhoods may drive new buyers to Old Southwest, says Avis.
The neighborhood has many feathers in its cap, including its walkability from downtown, stunning Victorian architecture and the popular Highland Park, which is dotted with mature Oak trees, a nine-hole disc golf course and a dog park.
Residents describe the neighborhood as diverse and welcoming, and that vibe is driving businesses to the area, such as Evie’s Bistro & Bakery and the Old Southwest Bar & Grill, opened last year. A neighborhood not-for-profit organization is active and involved in the neighborhood.
Old Southwest values: Increasing
Selling forecast: Good
Salem
Salem is an independent city of 25,000 people, but is also the county seat of Roanoke County. Residents are known for being passionate about where they live, and that pride translates to a strong community with excellent amenities and services. Roanoke College, a private liberal arts school, is nestled in Salem, along with housing that spans the gamut, from very affordable, to large, luxury homes. Parks and trails abound, and the city has its own minor league stadium and baseball team, the Salem Red Sox.
The downtown is a draw for visitors, and boasts a farmer’s market and many dining options, from a quick coffee and family-friendly Mac & Bob’s to fine dining at Blue Apron or the newly opened Frankie Rowland’s location. Easy access to Interstate 81 makes it ideal for commuters heading to nearby cities, such Christiansburg and Blacksburg.
Salem values: Increasing
Selling forecast: Good
South Roanoke
South Roanoke has always been a popular neighborhood with Roanoke lifers and newcomers, with its mature tree-lined streets, sidewalks, varied and interesting architecture and neighborhood elementary school.
The thriving business district, including newcomer Crystal Spring Grocery, which took over Tinnell’s Finer Foods space last year, draws diners and shoppers. Its proximity to Carilion Roanoke Memorial Hospital and the associated medical school is a plus for a reasonable, and even walkable, commute.
Avis, a South Roanoke resident, says, “It’s always been a popular area, but if there’s a house that is updated and is in a good location and lot, buyers are paying more right now than they’ve ever had to pay.”
South Roanoke values: High and steady
Selling forecast: Very good
Wasena
Wasena is a city gem, and according to Avis, is increasing in popularity. It’s not hard to understand why, as homeowners who are looking for a better value for their money than Grandin/Raleigh Court or South Roanoke can find charming, well-built American foursquares and quaint craftsman style and bungalow homes, most built between the 1920s and 1950s, with the kinds of details that only older homes can offer.
The 41-acre Wasena Park and access to the Roanoke River Greenway are the recreational highlights, and newer developments in Wasena, including RND Coffee and restaurants like Bloom, Wasena Tap Room, the Green Goat and Roanoke’s premier indoor climbing venue, the River Rock Climbing Gym, are making Wasena a bonafide destination spot for Roanoke visitors.
Wasena values: Increasing
Selling forecast: Good
The story above is from our May/June 2021 issue. For more stories, subscribe today or view our FREE digital edition. Thank you for supporting local journalism!