October Real Estate Sales

Both here at Lake of the Ozarks and across the nation we are seeing encouraging numbers on the real estate front. New housing construction and increases in sales of existing homes continue to point toward a sustained recovery in the months ahead.
Existing-home sales in August 2009 gave back some of their strong gain in July but remain above year-ago levels, according to the National Association of Realtors®.
Existing-home sales- including single-family, townhomes, condominiums and co-ops- declined 2.7% in August vs. July but remain 3.4% above August 2008. In the previous four months, sales had risen a total of 15.2%.
Lawrence Yun, NAR chief economist, said the tax credit is working. “Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus. The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions,” he said.
Judging from the increase in real estate activity here at Lake of the Ozarks, I feel we can expect this continual, steady increase in sales through Fall and continuing into 2010. Median prices are showing modest increases as well both at the lake and nationally. I don’t see this as an increase in property values but rather an increase in the price ranges being sold which is another good indicator of consumer confidence beyond the buyer’s taking advantage of the first time buyer credit.
Mortgage Rates dropped about a fifth of a percent in mid August, pushing average 30 year fixed rates to 5.2 percent and 15 year rates to just 4.5 percent. The Mortgage Bankers Association reported that loan applications to purchase houses jumped four percent in August for three straight weeks of higher applications. The $8,000 tax credit is still in place for homes purchased before December 1st so many are taking advantage of all these factors to purchase a home.
I feel we are seeing the bottom of the residential real estate market at the lake. There are excellent values (or “deals” if you prefer) available right now. I’m not forecasting a skyrocketing return to the quick sales and increase in property values that we were experiencing a couple of years ago, overall lake area sales numbers are still down but they are starting to rebound.
Whatever your take on the overall economy, you've got to admit: It's looking much better out there for real estate.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com