Tuesday, July 10, 2012

July 2012 Lake of the Ozarks Real Estate

Lake Market Continues Upward Trend We all watched as the lake area market rose to record sales from 2004 to 2007 then began to decline in Fall of 2007 slightly behind the rest of the country. Hard to believe that’s been 5 years! Sales continued to decline until 2009 then remained even in 2010. Basing information on data from the Lake of the Ozarks MLS system from January 1 to June 15 of each year reported; the lake home market saw a sales increase in 2012 of 19.9% above 2011 and an overall increase of 36.6% above ’09 & ‘10. 2012 Condo sales have followed suit with a 22.4% increase over 2011 and a 33.3% increase over ’09 & ’10. Days on the market are down considerably for both lake homes and condos to a six months average. I feel foreclosures have played a part in our market more based on perception of the national news and what has happened in other markets but as they say, perception is reality. The fact is that only 1.9% of all lake homes currently on the market are foreclosures and just 3.5% of condos listed fall in that category. Lake lots have taken the biggest hit due to a number of reasons. The availability and pricing of homes made it much easier and more affordable to purchase an existing home than to take on a custom build project. Financing has also made lot purchase and home building more difficult. Building permits for new homes in Camden County has been almost non- existent the past 2-3 years. That being said, there has been an increase in lot sales this year; 25% if you want the stats, but the fact is that just 20 lake lots have sold so far this year compared to 15 during the same time in 2011. This is a step in the right direction but far from the glory days of the initial 6 years of the new millennium. On the plus side, I sold 3 lake lots in June, all cash transactions scheduled to close early July. Two of these lots were located in The Villages at Shawnee Bend subdivision which has not seen a lake lot sell in the past year. The other was in Four Season’s Porto Cima which saw 6 lot sales in the past 12 months. The buyers each plan to build a custom home which is even more good news for the local economy. The buyers got excellent buys on these lots and I have every confidence that these will hold their value and even increase over the next couple of years. Was I lucky or smart? The next 2-4 months will tell as to whether I was just fortunate or if the lot market is picking up momentum. I feel the declining home inventory; particularly of desirable, well priced homes along with price adjustments in the lot market will drive lake lot sales. If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

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