Tuesday, September 26, 2017

October Lake of the Ozarks Real Estate Update

Market Trends & Indicators
Last year in September I compared the sales YTD to the previous year of 2015.  At the time, we were seeing a 2% overall increase in the number of properties closed.  However, there was a decrease in closed sales for most property types year to date compared to the same time in 2015 with just a couple of categories making up the difference.
     Compiling the data to compare this year to 2016 shows an overall increase of 13.3% in the number of properties closed.  Most property types have an impressive increase in the number of closed sales with the sales prices showing a modest uptick in the residential market.
     Lakefront home sales increased by 33.5% compared to 2016 and the average sales price rose 3.8%.  Non-Lakefront homes saw a 8.6% increase in the number sold and a 13% increase in average sales price.
     Condominium resales increased by 20.3% while their average sales price increased 1.7%.  New construction of condominiums has picked up over the past couple of months and I expect 2018 to see a big increase in the sale of new units.  Right now, the supply is very limited and there have been 18 new units sell in 2017.   These primarily represent units that were still available when the bottom dropped out.
     Lakefront land sales increased 40% in 2017 and saw a 14.2% decrease in average sales price.  This is the first time in over a decade that lake lot sales have shown a substantial increase.
     Non-lakefront land sales have been increasing steadily year over year but took a hit this year with a 29.6% decrease in the number of sales as well as a 13% decrease in the average sales price.
     Lake area sales data has been obtained from the Lake of the Ozarks MLS based on all property type sales over the time frame from January 1, 2015 to September 25, 2017 and all other times represented in the data.

    Michael has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com   You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

Tuesday, August 29, 2017

September Lake of the Ozarks Real Estate Update



Understanding Earnest Money

Make sure you fully grasp what an earnest-money deposit is—namely, proof that a buyer is committed to completing a sale by having skin in the game. The earnest-money deposit is a negotiable amount between the buyer and seller, but usually about 1% to 2% of the purchase price (although it can shoot up to 10%). This money is generally held by the seller's broker or a title company, to be used as a credit toward the down payment and closing costs.

In an aggressive seller's market, many homes receive multiple offers from anxious buyers. One of the ways to make an offer stand out is to offer a considerable earnest money deposit.  If a high earnest-money deposit scares you, remember you'll have to come up with the down payment 30 to 45 days after making an offer, anyway.  For example, on a $500,000 mortgage, a 15% down payment is $75,000.

One mistake buyers make with their earnest-money deposit is agreeing to remove contingencies   they may legitimately need.  For instance, if buyers agree to remove a loan contingency and their loan falls through, they'll lose their earnest money.  Other contingencies, such as a home that's uninsurable, inspection issues, a problematic title search, or if a house doesn't appraise—also protect a buyer by allowing the penalty-free canceling of a contract.  Make sure you are aware of all deadlines and contract requirements and stay on top of the timeline for completion or termination of the contract for valid reasons.

This may seem like a no-brainer, but it's easy to get swept away by a home's cool features when you first see it. Also, in a rapid paced market, you can become overly anxious about buying.  A buyer may put in an offer only to realize days later that granite counters and stainless appliances are incredible but the overall floor plan just doesn’t work for your needs.  Make sure that you're 100% serious about buying a home before making an offer.  If you get cold feet and back out, it's likely that you won't get your money back.

Know when to let it go.  I have worked with clients who have had major life changes during the midst of purchasing a home.  Unless you are working with an extremely understanding seller, they will most likely expect to keep the earnest money deposit.  After all, they have taken their property off the market in order for you to proceed with the purchase.  There will also be other expenses that would normally be paid at closing that your deposit will need to cover.

Personal problems may be very serious to you, but they're not a valid reason to cancel a home purchase. And if you're bailing on a deal with no legal justification, fighting for your earnest money deposit is probably a waste of time.    

Michael Elliott has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you have interest in a career in real estate or would like Michael’s assistance in the sale or purchase of property, you can reach him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com   You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

Tuesday, July 25, 2017

August Lake of the Ozarks Real Estate Update



     New construction rose in June to the fastest pace in four months, led by large increases in the Northeast and Midwest.  Housing starts of privately owned units climbed 8.3 percent in June above May 2017 and is 2.1 percent above June 2016.  The gain ended three straight monthly declines and marked the strongest pace of building since February.  

     Home construction has risen 3.9 percent year-to-date, but that slight increase has been unable to make up for the decrease in existing homes being listed for sale.  Housing starts jumped a spectacular 83.7 percent in the Northeast and 22 percent in the Midwest, sales edged up in the West but declined in the South.  June building permits, an indicator of future construction, were up 7.4 percent compared to May 2017 and is 5.1 percent above June 2016.

     The Lake of the Ozarks real estate market continues to pull further ahead of previous years.  2017 Lakefront homes sales currently sit at 27.3 percent above 2016.  This is more than a 5 percent increase from June’s 2017 YTD data.  Non-Lakefront homes sales have increased 7.3 percent YTD above 2016 numbers.  Condominium sales are up a solid 19 percent in 2017 vs. last year.  Lakefront lot sales have surged 79.3 percent YTD in 2017.  This is another excellent indicator of future construction. 

     If you need assistance in getting a clear picture of what this market means for you, please don’t hesitate to contact me or a member of my sales staff.  We have great insight into the current trends that effect the value and market demand of property.

      Sales data obtained from the Lake of the Ozarks MLS comparing the time frame from January 1st to July 25th of 2016 and 2017 and the US Department of Commerce.
      
Michael Elliott has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you have interest in a career in real estate or would like Michael’s assistance in the sale or purchase of property, you can reach him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com   You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

Tuesday, June 27, 2017

July Lake of the Ozarks Real Estate Update



     Ready to navigate the Seller’s Market?  Sales are clipping along at a rapid pace and values are also continuing to increase although at a slower pace than last year.  Inventory is still tight and I am beginning to see signs of strengthening in the lot market with custom home builds and properties being purchased to gut and remodel on the rise.

     2017 closed condo sales increased 21.1% compared to last year with the average sales price up just one-half percent.  Lakefront homes sold are following in line with a 21.9% increase in the number sold and a half percent increase in price.

    Off water home sales have slowed their rapid climb, settling in at a 1.8% increase in 2017 against 2016 and the average sales price shows values climbing at a rate of 4.6%.

     Lakefront lots are experiencing the largest increase in units sold with a whopping 78.2% rise above 2016 and the average sales price has gained by 20.1%     

     With the rapidly moving market and rising prices; it can be difficult to determine value for both buyers and sellers.  A good market analysis should include the most recent sales of the homes closest and most like your home.  In addition, it should also factor in the sales trends happening at the lake and in your neighborhood as well as considering the home’s features and potential drawbacks that add or detract from its worth. 

     My office is rapidly expanding as well.  With the addition of Kevin Wood and Jeff Anderson early this year, our inventory of well-priced and well-maintained properties are expanding, however with this fast-moving market, the new listings are not available long.

     We welcomed two more sales professionals in the late Spring.  Katie Doran and Lauren Bozzardi both are newly licensed and are currently working under the C. Michael Elliott and Associates Mentorship Program “Selling in Sixty”.  Both women have excellent educational backgrounds and prior professional experience well suited to their choice of a real estate careers.  Katie relocated to the Lake in the fall of 2016 with her family; including her son and daughter.  Lauren made the move to the Lake in the summer of 2015 with her two sons.  Both women can be reached at our office in Osage Beach.

     If you need assistance in getting a clear picture of what this market means for you, please don’t hesitate to contact me or a member of my sales staff.  We have great insight into the current trends that effect the value and market demand of property.

      Sales data obtained from the Lake of the Ozarks MLS comparing the time frame from January 1st to June 25th of 2016 and 2017.
      
Michael Elliott has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you have interest in a career in real estate or would like Michael’s assistance in the sale or purchase of property, you can reach him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com   You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com