Last month I reported that Camden County new home building permits have increased over 100% this year compared to 2011. Recently a client, Kelly Kenter, President of Sitelines, Inc. a full service construction firm based in St. Louis, shared positive related news from his industry with me. At the end of August, the American Institute of Architects (AIA) announced the Architecture Billing Index (ABI) reached its highest mark since 2007. The ABI is used as an economic indicator for future construction activity based on design billing from architecture firms. It reflects the nine to twelve month lead time between architecture billings and construction spending. The current high mark of the ABI forecasts good news for those in the contracting and construction world. As more projects are being designed, in nine to twelve months, a greater demand can be expected in the construction industry.
The number of sales of all properties is down 2% from last year but has risen 40% above the previous 10 year low point in 2009. Sales of condominium units are down 3.6% from 2013; unit sales have risen 35.1% over 2009. Average condo sales prices are up 6.5% from 2013.
Lakefront home closings are up 6.4% compared to 2013 and stand at 45.6% more than 2009. The average sales price is down 5.8% from last year but when comparing the average price per square foot, 2014 price per SF was almost identical to 2013 (2014 was 7 cents higher).
2005 was the peak year in terms of the number of properties sold. Since that time, the average sales price of both lakefront homes and condos then reached its peak in 2007. 2009 brought the low point in total number of sales followed by the average sales price bottoming in 2012.
The road to recovery has been a little bumpy and sales are certainly well below the peak times we enjoyed. I do feel that we are seeing a nice, steady recovery and given that sales jumped so rapidly to the high points, our current market is much more stable.
Buyer interest continues to be high and I feel that we will see a strong fall market. Inventory continues to drop and as excitement builds in seeing relief in the market recovery; the inventory of accurately priced homes is in great demand.
Sales data was obtained from the Bagnell Dam and Lake of the Ozarks Board of Realtors MLS from January 1, 2005 through September 15, 2014.
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 email@example.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