Lakefront lot sales are on the rise and I expect 2018 to see more sales than in any of the previous 10 years. In 2017, waterfront lot sales were up 46% over the previous year. This year, January and February lot closings were double and triple that of any of the previous 10 years closings in a month to month comparison.
Over the previous 15 years, 2005 had the largest number of lakefront lots sales with 290 lot sale closings. The low point was in 2011 with just 35 sales closed. Since 2009, lakefront lot sales have stayed under 100 closings per year.
The lakefront home market continues to have an inventory shortage and existing home prices keep rising. The demand for homes will drive an increase in building and we are beginning to see this come into play.
Over the previous 5 years, the available lot inventory has hovered mostly in the low to mid 500s range. The highest lot inventory was in September of 2015 with 566 lots and the lowest inventory was January of 2014 with 429 lots available. Currently, there are 440 lakefront lots on the market.
Nationwide building permits reported by the U.S. Department of Housing and Urban Development for privately owned housing units increased in 2017 by 4.7% above the 2016 permits issued. The Midwest area showed building permits increased by 9.2% in 2017 compared to 2016.
The lakefront home market continues to be a strong seller’s market. The lakefront lot market is currently transitioning to a neutral position between buyers and sellers. Looking at existing conditions, I believe we could very well see this shift further to a strong lot seller’s market by Spring of 2019.
Sales data obtained from the Lake of the Ozarks MLS comparing the time frame from January 1, 2004 to March 5, 2018 and the U.S. Department of Housing and Urban Development.
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 firstname.lastname@example.org 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