As The Lake Churns

January 2012 Real Estate Update

2012-01-09T14:33:00.001-08:00

The lake area home market continues it’s slow, steady progress. The number of homes sales are up slightly with 50 more units sold from January 1 to December 20, 2011 over the same time frame in 2010 according to data from the Bagnell Dam Association of Realtors Multiple Listing System. Average sales price remains unchanged, a positive sign that the downward spiral has come to an end.
Nationwide existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. The latest monthly data shows total existing home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent in November over October, and are 12.2 percent above November 2010.
With more people taking advantage of the buyer’s market sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010 – a genuine sustained sales recovery appears to be developing. We are seeing healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market.
Houses haven’t been this affordable since appliances came in harvest gold or avocado green. The benchmark of affordability—the ratio of median home price to median family income—has fallen to 2.6, below the historical ratio of 2.9. Another measure, the percentage of monthly family income consumed by a mortgage payment (principal and interest, using a mortgage rate of 4.1 percent), is 12 percent nationally, the lowest since 1971.
I feel the lake area prices will continue to hold steady through 2012 with some increases in certain property types then I expect a small increase to begin in 2013 assuming things are left to work themselves out and there are no further shocks to the economy.
Buyers who invest now or in the first few months of 2012 will be able to take full advantage of the bottom of the market. With both property prices and interest rates at historical lows, buyers will reap the benefits of this affordability as well as buying on the cusp of an increase in values.
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 at 866.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

December Real Estate Update

2012-01-09T14:32:00.000-08:00

Further indicators of a (slowly) improving real estate market with some backsliding in the past 30 days: The sale of lakefront homes rose again in a year over year comparison with the highest number of home sales since 2007, an increase of 8.6% over 2010. The average sales price is following along at a slower pace but is up 1.6% over last year. Both of these increases are down slightly from the year over year comparison 30 days ago. I feel this is characteristic of the lake market this time of year. Sales data is from the Bagnell Dam Association of Realtors MLS from January 1, 2002 to November 20, 2011.

The national delinquency rate for residential home loans fell to 7.99 percent in the third quarter—the lowest reading since the fourth quarter of 2008. The Mortgage Bankers Association reported recently that the 30-day delinquency rate reached its lowest level since the second quarter of 2007 at 3.19 percent.

Recently, BuildFax reported its BuildFax Remodeling Index for September 2011, which shows that remodeling activity reached a record high during the month. The latest BFRI showed that September 2011 became the month with the highest level of remodeling activity since the Index was introduced in 2004 and represented the 23rd consecutive month of increases. BuildFax also released data stating the most popular types of remodeling projects over the past five years.
1. Roof (21.4%)
2. Deck (7.9%)
3. Bathroom (6.9%)
4. Garage (6.1%)
5. Kitchen (4.8%)
6. Basement (2.9%)
7. Office (1.7%)
8. Sunroom (0.7%)
Mortgage rates continue to be near record lows, and as homeowners refinance, they are continuing to update their current home and invest in their properties. Homeowners are not only doing important maintenance projects, such as fixing their roof, but also taking on projects that add to the livability of their homes by adding decks, remodeling their bathrooms and updating their kitchens. These are immediate fixes they will enjoy and that potential buyers look for.
Karen and I would like to extend wishes to you for a wonderful holiday season. Our hope for everyone is food on the table, a roof over your head and loving friends and family to enjoy.
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 at 866.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

November Lake of the Ozarks Real Estate News Update

2011-11-01T13:08:00.000-07:00

News continues to be promising in the Lake of the Ozarks real estate market. Sales of lakefront homes are up again over last year with 8.8% more homes sold in 2011 vs. 2010, both up from 2009 numbers. The average lake home sales price is up 12% and sales of condos continue to hold steady both in units sold and value. Existing home sales in the Midwest have experienced large increases over the other regions in the country.

The luxury home market saw an increase of 45.4% in 2011 over 2010 and the luxury home inventory is down to levels we saw four to five years ago. This should help owners of luxury building lots since that market has been flat for several years due in large part to the decrease of values in the luxury home market. Some values fell as much as 30%, making buying an existing home much more affordable with the market offering a large inventory of options. According to information from Camden County planning and zoning just 17 new home permits were issued through August of this year.

Home foreclosures in 2011 are even with last year; the majority of these foreclosures are offwater homes. There are 14% less Lakefront home foreclosures vs. offwater homes. All home foreclosures in the area are 7% below the national average.

With the volatile real estate environment we’ve experienced here at the lake along with the rest of the country, it is important that you understand property values. I’d like to stress the importance of seeking out a professional who has the experience and knowledge to guide you through the potential pitfalls of buying or selling in today’s market and protect your investment. They should be familiar with properties that have sold as well as ones currently on the market. A skilled Realtor can also assist you on how to best position yourself in the negotiation process, help buyers through today’s more stringent finance process and guide all parties through escrow to a successful closing. They can also help you to stay calm and neutral through what is for many a very personal and sometimes emotional situation.

Sales data is from the Bagnell Dam Association of Realtors MLS from January 1, 2010 to October 15, 2011.

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 at 866.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

October Real Estate Update

2011-09-29T14:59:00.001-07:00

Following is a copy of the October article for the Lake of the Ozarks Business Journal monthly real estate column. You can view the Business Journal online at www.LakeBusJournal.com

I’ve created a Visual Tour showing much of the commercial construction activity and roads here at the lake. www.visualtour.com/show.asp?T=2602143

Last Man Standing

In the fall of 2007 when I saw where the market was headed and knew the effect this would have on those of us in the real estate industry, my remark was “last one out, turn off the lights”. My wife, Karen, always joked that it would be a “last man standing” situation.

As I am writing this in mid-September, my sales are up 42.7% over all of last year. With the four contracts I have set to close by the end of September, my first three quarter sales will have eclipsed the entire 12 months of 2010. My comrades here in the business at the lake are seeing relief as well.

It has been a long and arduous four years. Huge numbers have left their real estate careers behind both locally and across the country. To those who by luck, knowledge, experience and just sheer brute force were able to stay in the game, I say congratulations. The last men (and women) are now standing and I’m grateful to be among the best (and seasoned) real estate professionals you can find anywhere.

Lake home sales continue in an upward trend. I am seeing a huge increase in luxury home sales. These buyers are generally professional businesspeople paying cash. This shows a real boost in confidence in both lake area real estate values and its economy. I am hearing similar reports from builders and agents in the St. Louis and Kansas City areas. With most of our 2nd homeowners coming from those two areas, good news for them is always good news for the lake.

Lots sales have continued to be almost non-existent. With the supply of homes ready to buy, people simply aren’t looking to build. As this supply is reduced and values begin to stabilize, we will see a return to new home starts. Condo sales are still holding steady.

Again, all of the commercial activity creates excitement and spurs confidence. We’ve created a virtual tour of some of the commercial happenings here at Lake of the Ozarks. For a link, email me at cme@YourLake.com and request the lake tour or visit my website www.YourLake.com and choose Lake of the Ozarks Commercial Activity Tour on the Welcome (home) page.

Karen and I would like to say thanks to our fellow agents for being so great to work with. During the past two years we have concentrated on stabilizing then growing our business. We have seen continual increase in our sales and the past 60 days we have had a large jump in activity. If you are considering making a move from your current company, please give us a call. We have the systems and marketing in place to help you grow your business. No matter what level you are at in terms of experience and success, we have the capabilities to assist you in reaching the next level through training, mentoring and not only sharing leads that we generate but teaching you how to generate your own leads and be more independent in producing income.

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 at 866.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

September Real Estate Update

2011-09-29T14:58:00.002-07:00

The Worm Has Turned
When Shakespeare used that simple phrase, "The worm has turned," he knew his audience would understand its meaning and origin. A widely used expression even today, it indicates a reversal of an unfavorable situation, but few who use it know why.
"Worm" is a common term for 'dragon.' In fairy tale terms, the flying dragon spewing fire would ravage fields and villages. To be in the dragon's path resulted in inescapable destruction. What a relief when it changed directions.
The latest stats show that our “Lake Dragon” has continued in its new upward direction. Lakefront home sales are higher in 2011 than every year since 2007. 2011 home sales are up by 16% over 2010 and are almost 30% higher than they were back in 2003. The average sales price is also up 3.5% from 2010. Condo sales are not enjoying as quick of a recovery as homes but sales are still slightly up over each of the previous two years however the average sales price is still down. Nationally, all existing home sales were up 21% in July 2011 over July 2010 and in the Midwest sales were up 31.3%.
If you haven’t been to the lake lately, commercial construction has started to roll. A new Golden Corral was completed earlier this summer; CVS Pharmacy is coming up nicely at Eagles Landing with Mennards pad site currently being prepped and Kohls to follow soon. Dierberg’s plans for the former High Point Center include a 15,000SF grocery store along with another large box store. The Osage Beach Expressway is complete from the Osage River to the Grand Glaize Bridge with western completion scheduled by December of this year along with the extension of the Horseshoe Bend Parkway (242) from the HH and Bus 54 junction which is now rough cut all the way through.
Most of the information I have compiled is based on data from the Board of Realtors MLS System from January 1 thru August 15 in each of the previous 10 years. This is intended as a general synopsis of the lake’s real estate market. If you would like detailed information on any specific market at the lake, please let me know.
Any questions? Contact C. Michael Elliott & Associates at 866.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

August Real Estate Update

2011-09-29T14:58:00.001-07:00

The Bottom has Arrived!
The Pending Home Sales Index rose 8.2% in May 2011 over April’s pending sales and is 13.4 percent higher than May 2010’s reading. This is the first time in over a year that contract activity was above year-ago levels and the strongest monthly gain in six months. Pending sales have trended upward since bottoming last June, rising in seven of the past eleven months.
June sales stats hold further promise for the Lake of the Ozark’s real estate market recovery with the number of lakefront homes sold in June 2011 vs. June 2010 up by 9.8%.
In comparing the first six months of 2011 to 2010, we again see a hopeful increase of 8.8% in the number of closed sales. Pending lake home sales as of mid-July indicate that this upward trend is already in place to continue over the next two months.
This is the longest sustained growth pattern I have seen in almost four years. I am cautiously optimistic that we have found the bottom. Can you hear the collective release of held-breath across the realtor and seller community?
On average, the lake area has taken a 15-20 % hit on values depending on property type and location. What many buyers don't realize is that most sellers have already adjusted their asking prices to reflect this depreciation. In my 30 years in this business here at the lake, I have never experienced as many stalemates in contract negotiations. Often, the seller isn't even willing to make a counter offer due to the initial offer being so far below market value and most are not in dire straits, need to sell circumstances. Of the 2,230 homes active in MLS on the day of this writing, only 87 are foreclosure properties. The lake's market may have taken a hit along with the rest of the country but it is on the upswing and with the financially strong base of homeowner's, I feel it will recover faster than most areas. So if you are a seller, hang in there; hope is on the horizon. If you're a buyer; hurry up!
I know I keep singing the same song, however I cannot express enough to potential buyers, act now. Prices are low, interest rates are at historically record lows and potential lending regulations are on the horizon that will make it difficult to obtain a mortgage as well as decreasing loan limits and causing high servicing fees.
Most of the information I have compiled is based on data from the Board of Realtors MLS System from January 1 thru July 20 of both 2010 and 2011. This is intended as a general synopsis of the lake’s real estate market. If you would like detailed information on any specific market at the lake, please let me know.
Thanks to everyone who joined Karen and me at the JB Hooks Business Journal Social. We had a great time and enjoyed fabulous food and service as always. Thanks to John LaFata and his terrific staff for always taking such great care of us.
Any questions? Contact C. Michael Elliott & Associates at 866.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

July Real Estate Update

2011-09-29T14:57:00.000-07:00

May sales stats have bolstered the year to date stats for the first five months of 2011. Overall lakefront home average sales price has increased 4% while the number of homes sold increased by 9%. Average price per square foot remained the same indicating that at least for now, prices are holding steady.
The largest growth in a specific segment that I am seeing is the luxury home market of Porto Cima and The Villages at Shawnee Bend. The number of lakefront homes sold in these communities has more than tripled over the same time frame last year, average sales price has increased 26% and the price per square foot has risen by 15%. The average days on the market has been reduced by about two and a half months. It will take monitoring over the next few months to determine if this is an anomaly or a true return for this section of the market. I personally believe we are seeing a return in consumer confidence.
The number of Horseshoe Bend (non Four Seasons) lakefront homes sold is down by one, the average sales price is up 5 ½ % and the price per square foot is down 12% so in this segment, the buyers are still spending and they are getting more house for their money.
Four Seasons lakefront home sales have increased by 29%, the days on the market decreased by two months and the average sales price has fallen by 16%. Upon closer review, this appears to be more due to smaller homes selling than to a decline in value.
Lakefront condo sales are up slightly in terms of units sold however the sales prices and price per square foot are down about 5% (which is still a 3% improvement over the first four months YTD combined sales).
In looking at a closer comparison of waterfront two bedroom units on Horseshoe Bend, the number of units sold have more than doubled over last year, the days on the market have decreased by over a month, average sales price has remained the same but average unit size is larger so again, in this segment buyers are getting more for their dollar.
Camden County reports via their website they issued 8 new residential building permits the first four months of the year. It did not indicate what that figure had been in 2010 for comparison. I believe the lack of permits goes hand in hand with the lack of vacant land sales the lake has been experiencing the past couple of years.
Most of the information I have compiled is based on data from the Board of Realtors MLS System from January 1 thru May 31 of both 2010 and 2011. This is intended as a general synopsis of the lake’s real estate market. If you would like detailed information on any specific market at the lake, please let me know.
For anyone interested in seeing what is available in the foreclosure market, please call or email, I’ll be happy to provide you with listing data on bank owned properties.
Karen and I are hosting the July 14th Business Journal Social at JB Hooks from 4 p.m. to 7 p.m. Stop by to visit and enjoy some great food and as always, great service and atmosphere.
Any questions? Contact C. Michael Elliott & Associates at 866.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

June Real Estate Update

2011-09-29T14:56:00.000-07:00

Are We There Yet?
The most asked question these days is “Has the market hit bottom yet?” I’d love to reply with a resounding yes but the truth is, I’m just not sure. I have seen indicators over the past two years that seemed to point to that only to see the market drop even further.
The National Association of REALTORS recently released a report showing that total existing homes sales, which include single family homes and condos, rose 8.3% in the first quarter of this year.
Locally our home and condo sales are almost exactly the same as last year in the time frame of January 1st to April 30th based on information from the Bagnell Dam Association’s Multiple Listing Service. In 2011, one more home sold than in 2010 and 3 less condos sold this year over last. It is promising that we are starting to stabilize on the number of home and condo sales. However we have seen a continued decrease in average sales prices. The average 2011 Homes sales price is down 8.9% compared to the first four months of 2010. The average 2011 Condo sales price has seen a decrease of 8.2%.
The Housing Finance Reform Act of 2011 was introduced in May and seeks to maintain government role in mortgages. The plan is to dissolve Fannie Mae and Freddie Mac and introduce at least five private firms that would be in charge of funding and securitizing conventional mortgages. The resulting bonds would have a federal guarantee for which these firms would be charged a fee. If passed it will make it more expensive for buyer’s to buy a home, restricting the availability of mortgages. Higher down payments will be required and the closing fees almost certainly will increase.
Based on this information, the current low interest rates and the low prices, even if we haven’t reached absolute bottom, I not only believe that now is a good time to purchase lake property, I encourage you to move forward quickly. Waiting for a lower price could result in you paying higher interest rates, higher down payment and larger closing costs. Or it might even affect your ability to qualify for a mortgage. Don’t wait! If you’d like a copy of the Outline of the Housing Finance Reform Act, call or email me.
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 at 866.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

Foreclosure Tax Ramifications

2011-05-11T13:04:00.000-07:00

Be aware of a possible tax liability in a short sale or foreclosure. In regards to a short sale or foreclosure, usually under the tax laws, if your debt ir canceled or forgiven, that is taxable income to you. Basically, the difference between the amount of the loan the price the property brings.

If you lose your house by foreclosure or short sale, to add insult to injury, you may have to pay tax on this "income". There may be some relief if the debt was on your principal residence. Under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million.

If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.

If your canceled debt was on a refinanced loan, the law is murky. If you used the refinance proceeds to substantially improve your house, the there is no tax to pay. But if you used those proceeds for other purposes the cancellation creates a taxable event for you.

If you are facing possible foreclosure or short sale, be sure to contact a good tax accountant and or attorney to discover what your options and possibilities are.

The IRS has an excellent, free publication on this topic, called "Cancelled Debt, Foreclosure, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website: http://irs.gov/pub/irs-pdf/p4681.pdf or by calling 800.829.3676 or 800.Tax.Form

Tax Time And Homeownership

2011-04-11T13:43:00.000-07:00

If you are a homeowner, make sure you take advantage of all the credits available to you when you file your taxes this year. Numerous deductions and credits are available for homeowners. These include capital gains and mortgage interest deductions, as well as credits for energy-efficient upgrades.
To get the latest information on energy credits for this year's tax return, visit EnergyStar.gov. You may be able to deduct portions of improvements on everything from windows and doors to water heaters.
Why do homeowners get such special treatment? For starters, the National Association of Realtors reports that "home owners pay 80-90 percent of all U.S. federal income taxes." And the credits and deductions don't just benefit wealthy homeowners.
Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year. (NAR)
NAR President Ron Phipps says that homeownership has many positive impacts. "Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”
Need some tips for this tax season? Take a trip over to houselogic.com, a free source of information from NAR, for the latest tips.

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 at 866.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

The Light at the End of the Tunnel

2011-03-03T12:06:00.000-08:00

As we progress over the next few months into this Spring market we will be better able to review sales statistics to see if we truly are starting to rebound however, the research I have done based on the first six weeks of this year are promising. Based on data from our Bagnell Dam Association of REALTORS Multiple Listing System comparing the time frames of January 1 thru February 15 of each year from 2002 to the present, I am seeing an upward trend in the number of homes sold, the total sales volume and an increase in the upper range of sales prices.

This chart lays out the numbers of homes sold, average sales price, range of sales prices and the total volume of sales dollars.

The next 30 days will be the strongest indicator as to whether we are starting to get back on track (or if perhaps we should get off the track in case this light I’m seeing is another train). I personally have had more business in the first six weeks of 2011 than I had the last six months of 2010.

On another positive note in my life, Karen and I were fortunate to be able to sell our personal home in The Villages at Shawnee Bend during this tough market. We moved in February to another property we own on Horseshoe Bend. We had just sold another home we owned in Osage Beach the end of last year so we are breathing a lot easier. As we’ve done in the past, we’d like to purchase another lot and build again but plan to spend at least the next year concentrating on taking our real estate business to the next level, making time for family and friends and hopefully for some personal enjoyment and relaxation.

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 at 866.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

Recent Events and Future Forecast

2010-11-16T09:22:00.000-08:00

Kudos to Matt Duenke and the Duenke family. They have enlisted the Zanola Company firm to conduct in depth demographic and market research and economic forecast research for the lake area. This will enable them to better gauge the future development at the lake. This will assist them in determining the best use of the Duenke Family Properties around the new expressway. They have generously set up meetings open to area business people and general public to share the information. The Duenke Family is carrying the costs of these studies and presentations.

I am excited to announce that The Duenke Family has chosen C. Michael Elliott & Associates to represent them in the marketing and sales of The Estates at Palisades Highlands. We are looking forward to a long term relationship coordinating the sale of their properties.

The response to my article last month was huge. I want to thank everyone that took the time to share their thoughts with me. I have seen an increase in real estate activity since the election. I feel that regardless of the outcome, people were waiting to see what happened before making any decision to move forward with purchasing property.

As Colin Powell said in a recent interview; "American people still believe in this country. What they're waiting for is for the political leaders in Washington to get on with the solution to problems and not continue to argue with each other. The next year is going to be important."

It has almost been a year since Karen and I started C. Michael Elliott & Associates. It has certainly been an interesting year. We have seen our local market finally stabilize. There has been an increase in home sales and we are now seeing movement in the luxury home market. There have also been several commercial transactions where the commercial market was almost non-existent the previous two years. In all, indicators point toward a much better 2011 both locally and nationwide.

We appreciate all of our family, friends, clients and the Realtor community who have helped us to have a successful year in the toughest market we’ve experienced in our combined 55 years in the lake real estate business. Best wishes to everyone for a Merry Christmas and Happy New Year!

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 at 866.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

Hope Pray Vote

2010-11-16T09:21:00.001-08:00

As I write this, we are a week away from the November mid term elections. I hope and pray that this election will regain some balance to our country’s economic situation and I will be voting my support for a return to conservative values and agendas. I feel we will begin to see a return in consumer confidence as power shifts from the current idea that we can spend our way out of debt and cover those debts by increased taxes on a society that has already been taxed to death.

The lake area is positioned for its next growth phase. The opening of the latest phase of the expressway has met with some controversy but I feel will contribute to a renewed commercial market which has been almost non existent in the past two years. Combined with other developments; I feel we are poised for growth that far exceeds anything we have experienced in the lake’s history.

Dierberg’s plan to locate in the former High Point Center also includes a 36,000 square foot Best Buy along with another big box store that has not yet been named. John Q. Hammons’ Chateau at the Lake is on schedule to break ground by late winter. Plans are still in the works for the Horseshoe Bend Parkway and Prewitt’s development at the corner of the Parkway and Expressway includes several big box stores.

All of this progress will mean more jobs, more revenue to our local businesses as well as local governments. Housing demands will increase along with both residential and commercial real estate values.

I have worked with many clients over the past year that are capable of purchasing but have been concerned about what is happening in our country and hesitant to move forward. Our country was built on private land ownership and I truly feel that with historically low interest rates and property values as well as what is going on in local development, those who purchase now will see a great long term gain on their investment. I feel this is true of all property types; commercial, residential and income producing properties. Where and what you purchase is still a very important factor and I urge you to enlist the support of a real estate professional in making these decisions.

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 at 866.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

Better Lucky than Smart?

2010-02-22T16:20:00.000-08:00

I’d like to think I’m smart enough to know when I’ve gotten lucky. The past 60 days have been some of the most challenging in my life. At the onset of the new year, I resolved my partnership in my real estate company, started a new company, lost my mother to COPD in January and, like so many of you, have battled a slow economy and down real estate market.

The outpouring of sympathy, well wishes, support and assistance from friends, family and acquaintances in the business community has been incredible as well as humbling. The offers of assistance from agents in competing companies has been amazing. I am truly blessed and very lucky indeed to be surrounded by people so generous and caring and I appreciate each kindness.
The increase in new business since the start of the year has been both exhilarating and at times, overwhelming. Homes sales are up over last year and interest rates are still extremely attractive. Congress extended the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010 and expanded the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home by April 30, 2010. Again, I have gotten very lucky to have such key items in play at such a crucial time in my business.
C. Michael Elliott and Associates new real estate offices are located at 3738 Highway 54 in Osage Beach next to U.S. Mortgage. The offices are under construction and we are on target to move in this month. My wife and business partner, Karen, and I will host an open house on Saturday, April 24th from Noon to 4 p.m. and hope you will be able to stop by and visit us and meet our staff and sales agents.

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 C. Michael Elliott & Associates at 866.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

Condo vs. Condo

2010-02-22T16:17:00.000-08:00

There are 1063 new and resale condominium units currently on the market at the end of January through the Bagnell Dam and Lake of the Ozarks Multiple listing systems not including villas and townhomes. How do you choose which one is right one for you?
After determining criteria like square footage, and number of bedrooms and baths you can locate the developments with units that fit your needs as well as your pocket book. Sounds fairly easy, however, in searching for a 2-3 bedroom, 2-3 bath, 1000-1800 square foot unit in the $150,000 to $200,000 price range you will still have 277 units to consider. Obviously, you can narrow your search to a more specific area and determine what amenities are important to you such as pools, tennis courts and clubhouses.
At this point you could easily still have at least 150 units to choose from. I’d like to give you some pointers that will assist you in determining which development will be the best value for you. Whether you are hoofing it on your own or you have enlisted the aid of one of our many fine lake area real estate agents, here are some questions you need to ask.
ASSESSMENTS: How much are they and what do they include? If it is a new, developer held project, do they seem exceedingly low? (If so, look for them to rise in the future). How much reserve does the association hold? (This covers unexpected items not in the budget and if the reserve is low, plan on a special assessment should any problems arise.) Are there past, current or future special assessments and what was the assessment for? If the association has voted to put in new amenities that benefit the development you may be able to consider it an improvement but if construction elements (decks, roofs, siding, etc.) are failing before normal expectations, you may be looking at a money pit not only in terms of the assessment but in a negative impact on the project in unit value and resale potential.
CONSTRUCTION: Quality products, excellent workmanship and attention to detail will require you to look beyond the surface and make certain that shortcuts haven’t been used that will cost you in terms of value and repairs down the road.
DEVELOPER: Who developed this project, other projects? Are they still involved? Are they still in business? Look for a solid, reputable builder with a good track record.
The Condominium Act will allow you to see a “Resale Certificate” and view budgets and assessments prior to closing so even if you have made an offer on a condo; you still have an opportunity to review these items. If you are still in the looking stages, wouldn’t you rather know of any potential problems before you are heading to the closing table and already have your heart and dreams set on a condo that is not in your best interest?
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 C. Michael Elliott & Associates 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

December Real Estate News

2010-02-22T16:14:00.000-08:00

I have watched sales at Lake of the Ozarks increase over the past three months and, based on the current activity from buyers, I expect this to continue forward right into Spring.
At the end of November, Federal Reserve Chairman Ben Bernanke, speaking to the Economic Club of New York, described some of the well-known problems standing in the way of economic growth, especially double digit unemployment and consumer confidence that's shaky week by week at best.
But buried away in his speech he said: Housing in the coming year is going to be a relative bright spot - a helpful driver of national economic growth, rather than the wet blanket it's been for the past couple of years.
Think about that: Home sales and new home construction, at least according to the Fed, are likely to stimulate the economy in 2010; enough to generate jobs and help avoid a double-dip recession.
That forecast just happens to track nicely with another that came out last week: Fannie Mae issued its projections for the coming year and predicted that housing sales will jump by 11 percent even in the face of a slow recovery for the economy as a whole.
Meanwhile, scattered reports from hard-hit local real estate markets suggest that there may be some reasons for guarded optimism.
For example, research firm MDA DataQuick's latest report on sales and prices in southern California, found that October sales were up nearly three percent over September, and that prices are rebounding as well.
Now, as is almost always the case, not all the news is on the up side. New home starts dropped by a surprisingly large, seasonally-adjusted 10.6 percent, according to the U.S. Commerce Department however a lot of the decline came in multifamily housing apartment starts -- a volatile month by month index.
Finally into the mix, mortgage rates continue to be the magic potion for home buyers, dropping again further into the four percent range. Homes are at the most affordable in years, interest rates are at record lows and the first time homebuyer credit has been extended along with the addition of a second home buyer credit. Take advantage of these factors to secure a sound investment for yourself.
A brief update on the latest luxury home auction held the end of November. None of the four homes were sold at the auction. Again, I urge you to consult with a professional, knowledgeable REALTOR prior to making a decision on how to sell or buy property.
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 thousands of lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Real Estate Auction Update

2010-02-22T16:12:00.000-08:00

In my August article I outlined what I was seeing in the sudden surge of lake home auctions. I’d like to update you with what I have observed in the 3 months since and give you some information and advice if you need to sell your home and are weighing your options.

Approximately half of the homes that have been scheduled for auction have actually sold at auction. Several of the homes that had an accepted bid and technically sold, did not close and were placed back on the market.

The majority of the auctioned properties sold at a price comparable to what similar homes in the same neighborhood sold at recently. In the most recent auction as of the writing of this article, I felt that the sales prices were considerably under fair market value.

I am now seeing auction fees as high as 12%, generally the auction company charges a substantial, upfront fee for marketing to the seller which is retained whether or not the home sells. Another fee is collected from the buyer at the auction and that fee is considered earned by the auction company at the time the contract is signed at auction.

Most real estate companies will cover the costs of marketing and selling your property based on the commission they will earn at closing. My company charges a 7% commission on residential sales and we split that with another company if they bring the buyer. If you are willing to pay upfront marketing fees and price your property at or below market value, discuss this with your Realtor. He or she can put together an excellent marketing plan to move your property quickly and for the most profit to you.

As I stated in a previous article, auctions are simply another method of selling real estate. I have attended auctions by various companies and have felt they were handled professionally, with many of the bidders introduced to the auction property by their Realtor. If you are real estate savvy and have a lot of knowledge about values and the current market, you may be just fine on your own but since most auction and real estate companies work together sharing fees there is no additional cost to you and can save you both dollars and the more long term expense of making an error in judging the market.

I feel many of the sellers of auctioned homes would have realized a higher net profit if they had priced their homes appropriately while they were on the market and certainly would have sold their homes more quickly. I highly recommend to anyone considering buying or selling at auction; consult with a local, experienced Realtor before making a decision. If you decide that an auction is your best option, you still need someone with insight as to what home values are in various neighborhoods as well as knowledge about the history and pertinent details of a particular property.

The most recent auction company to come to the lake will hold their last auction this month then won’t return to auction again until next March. In the meantime, if you need assistance buying or selling here at the lake, I’ll be here.

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 thousands of lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

October Real Estate Sales

2009-10-26T17:01:00.000-07:00

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

September Lake Real Estate Sales Report

2009-10-26T15:59:00.000-07:00

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.
The Commerce Department reports that single family starts last month were up nearly two percent over the prior month, while permits for future construction jumped by six percent. Starts and permits are now at their highest levels in ten months.
Existing home sales and price reports from around the country show the rebound getting underway. 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.
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 factor 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 housing.
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

When the Hammer Falls: Luxury Lake Home Auctions

2009-10-26T15:58:00.001-07:00

Curiosity combined with a desire to be on top of the Lake real estate market led me to attend the July 18th Luxury Home Auctions here at Lake of the Ozarks.

Each of the four homes advertised for auction were investment speculation homes. None of these were distress sale situations and certainly none were anyone’s personal home they were in danger of being put out of. All of these homes had minimum reserves or bid requirements set.

The results of the auction were interesting. One home was contracted before the auction took place, the remaining three were contracted on auction day as a result of the auction however, two of these are now back on the market leaving one home sold at auction still under contract at the time of this writing.

Each of the four homes are listed with various real estate companies and the listing agents worked with the auction house to facilitate and market the auction process. The auction process was handled very professionally and had a large attendance.

In a down real estate market, sellers are looking for an edge and buyers are looking for a deal. A real estate auction is simply another method of selling real estate. It is a real estate marketing process that involves the public sale of any property -- most certainly including those that are nondistressed -- through open cry, competitive bidding.

Any auction can also be affected by national and world economic situations. Auction dates are set weeks in advance. A rash of bad news in the days before an auction can affect bid prices, and, ultimately, the sale price.

As a seller, you need to do your homework to know what services are offered, how your property will be promoted, what fees and commissions you will be responsible for and the auction house’s track record. Most auction houses charge an upfront marketing fee in addition to commission.

As a buyer, you need to complete your due diligence and have your financing in order before the auction. No inspection clauses or financing contingencies are allowed in most auction sales. Most auctions charge a buyer premium or percentage of the purchase price; at the auctions I attended it was a 6% fee. You also need to realize the auction house is representing the seller and you’ll want to be sure to obtain any required documents in advance for review.

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

What to Do When the Sale Price Leaves You Short

2009-07-07T08:58:00.001-07:00

If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
• Your property is worth less than the total mortgage you owe on it.
• You have a financial hardship, such as a job loss or major medical bills.
• You have contacted your lender and it is willing to entertain a short sale.
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:
• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
• Help you set an appropriate listing price for your home, market the home, and get it sold.
• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
• Ease the process of working with your lender or lenders.
• Negotiate the contract with the buyers.
• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
• A hardship letter detailing your financial situation and why you need the short sale
• A copy of the purchase contract and listing agreement
• Proof of your income and assets
• Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
• If you have only one mortgage, the review can take about two months.
• With a first and second mortgage with the same lender, the review can take about three months.
• With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

With Affordability Up and Interest Rates Down, Home Buyers are Starting to Return

2009-07-07T08:55:00.001-07:00

Thanks to record low mortgage rates and declining home prices, 55 million families – or half of all U.S. households -- can afford today’s median-priced new home, according to figures released by the National Association of Home Builders (NAHB).
"That’s an increase of 17 million households from conditions just two years ago and the best housing affordability number we have seen in years," said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. "We are now seeing the first signs that home buyers are returning to the marketplace."
Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB.
"With affordability up dramatically, reports from our builders in the field indicate that foot traffic in new homes is on the rise and consumer interest is increasing with each passing day. These are encouraging signs that the housing market may be finally reaching a bottom," said Robson.
Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market.
Single-family permits were up 11 percent in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down. In a survey last month among prospective first-time home buyers who indicated they were likely to purchase a home in the next two years, a majority – 78 percent – said that now is a good time to buy a home. Of those responding to an online poll, 68 percent said that now is a better time to buy than six months ago.
Another sign that consumers are considering jumping back into the housing market is the growing interest in the $8,000 first-time home buyer tax credit included in the recently enacted economic stimulus package. During February and March, 1.5 million visitors logged on to NAHB’s consumer Web site, federalhousingtaxcredit.com, to learn more about the tax credit. Further, a new survey commissioned by Move, Inc. found that nearly 20 percent of those who plan to purchase a home this year are doing so to take advantage of the tax credit, which expires at the end of November.
"With home values in many markets at the lowest level since 2003, an $8,000 tax credit available to first-time home buyers, fixed-rate mortgages under 5 percent, and an outstanding selection of homes to choose from, buyers are starting to recognize that this has the makings for a one-time opportunity to break into the market," said Robson.
Housing is a critical component of the U.S. economy, accounting for about 15 cents of every dollar spent in this country, so any upturn in the housing market should be viewed as good news for the overall economy, said Robson.
Construction of an additional 500,000 single-family homes – the difference between today’s anemic construction rate and one that would move closer to meeting the underlying demand for housing – would generate 734,000 jobs and $35 billion in wages in the construction industry and another 790,000 jobs and $37.7 billion wages in manufacturing, trade, and service sector jobs, he noted.
Additionally, another half-million housing starts would bolster the tax base for government, generating $45 billion in federal, state and local tax revenues. And the benefits go well beyond the completion of each home. Within the first year after buying a home, those half million households will spend about $2.5 billion more on appliances, furnishings and property alterations. Clearly, housing will be central to any economic recovery we experience in the months ahead.
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

With Affordability Up and Interest Rates Down, Home Buyers are Starting to Return

2009-07-07T08:55:00.000-07:00

Spring Market Showing Increasing Activity

2009-07-07T08:53:00.000-07:00

April has shown a great increase in the number of potential buyers looking to make a purchase in time to enjoy the 2009 Summer Season.
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

1st Time Homebuyer Credits and Low Interest Rates

2009-07-07T08:50:00.000-07:00

If you haven’t owned a home in the past 3 years, I advise you to consider getting back into home ownership. With the 1st Time Homebuyer Credit at $8,000, interest rates at an historic low and am ample selection of homes to choose from combined with motivated sellers there may not ever be a better time to buy.

The homebuyer’s credit is available on purchases made from January 1, 2009 to November 30, 2009 and actually reduces the amount of taxes due by the amount of the credit. If you owe less in taxes than the credit, you will receive a check for the difference. Many people don’t realize they are eligible for this credit or what the details are. If you would like me to send you a copy of NAR’s frequently asked questions guide, please call or email.

Daryl Weatherman, long time lake area builder and developer has recently chosen me to market his newest development, Pointe Royale Resort Community. Located at the 3.5 mile marker of the Big Niangua and on State Route EE at Greenview, this development is perfectly situated to take advantage of quiet water and roads but is just minutes to activities, dining and shopping.

Daryl has secured 4.875% 30 year fixed rate financing with NO points for buyers. Take advantage of this along with the 1st Time Homebuyer Credit and you’ll have a great value! Prices range from $128,900 to $192,850 for 2 and 3 bedrooms units. The quality of construction provides low maintenance, excellent sound proofing and fine upscale details usually found in higher end custom homes.

I’ll be glad to send you a full information packet for Pointe Royale or you can stop by the decorator model 10 a.m. to 4 p.m., 7 days a week. For a virtual tourvisit us 24/7 at www.PointeRoyaleCondominiums.com

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

STATE OF THE LAKE ADDRESS

2009-03-16T09:50:00.000-07:00

I am writing this on the day that President Obama will give an address in front of Congress with heavy emphasis on the economy. The White House Press Secretary has stated that he feels the President will discuss restoring to Washington a sense of fiscal responsibility and understanding that we have to live within our means. We currently have a $1.3 Trillion annual budget deficit.

This speech follows a week after the signing of a $787 Billion stimulus bill. It comes at a time polls indicate that nearly three out of four Americans are scared about the way things are going in this country. The stock market closed yesterday at it’s lowest since 1997.

Well, how’s that for a rosy picture? Add to that, the decrease in homes sales over the past 3 years at Lake of the Ozarks and you may wonder if it is a wise choice to buy a home at the Lake.

My answer is a resounding YES. While the number of homes sold has fallen, property values have held steady. The key to purchasing is to have full knowledge of what is happening in the Lake market. You should still base your purchase on what your and your family’s needs are in a home and on your budget. From there you need to research the neighborhood, property condition, what similar properties have been selling for as well what trends the market data has shown over the previous 3-5 years.

If you are looking to purchase based solely on investment, there are some decent buys out there. While the number of foreclosures is less than 5% of all homes currently available through the Bagnell Dam and Lake of the Ozarks Multiple Listing Service, they do exist and some present a great opportunity. I am also seeing some short sale situations. Again, whether you are on the buying or selling end, knowledge of the market is crucial and hiring a real estate agent that is experienced and educated in these matters will prove to be well worth the fee you’ll pay.

Lake of the Ozarks is constantly moving forward. MODOT is progressing with the by-pass and other surrounding road improvements that make us easily accessible from all directions and simple to navigate while here. New commercial projects continue all over the lake area which will open new jobs and increase our visitors. All of this will reflect positively on the lake’s economy and, in turn, our real estate values.

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

Great Time to Buy a Vacation Home

2009-02-03T05:50:00.000-08:00

Lower prices and less competition are the tip of the iceberg-sized list of factors that make it a good time to consider a vacation home purchase.
According to statistics from the Bagnell Dam Association of Realtors Multiple Listing System, in 2007 1,604 homes sold for a total sales volume of $387 million. In 2008 1,153 homes sold with a total volume of $262 million. 2007 Condos sales totaled 815 at $161 million, average sales price was $198,638. 2008 condo sales totaled 559 at $110 million, average sales price was $197,224. In 2007, 734 lakefront homes sold for a total of $268 million and average sales price of $366,302. 2008 lakefront homes totaled 504 at $178 million and $353,590 average sales price.
While the number of properties sold is down considerably, values are remaining reasonably steady. A host of market conditions have converged to make buying a second home a smart move right about now.
Stock market woes have always pushed people to look for alternate investments, and real estate is a consistent stronghold. Home sales are down right now but they have always rebounded. I wouldn't recommend buying a second home with the expectation of flipping it for a quick buck, but if you hang onto it for a while -- and better still, turn it into a vacation rental property -- you'll make a nice profit.
Interest rates are cooperating. As of the writing of this article, 30 year fixed rates are averaging 4.96%. The rate hasn't been lower since Freddie Mac started surveying these averages in 1971. Rates have been reasonably low for awhile, following earlier rate cuts last year toward the beginning of the year. That's good news for anyone who's in the market for a mortgage.
The pressure of bidding wars is off. Housing bubble or no housing bubble, you're not going to get bargain basement prices on a lakefront home or condo but because houses aren't flying off the shelf, there's less pressure on you to make a quick decision. You can afford to take your time, do your research, and refine your plan.
Vacation rental demand is on. Economic pressures on travel budgets are forcing those who once traveled abroad to stick closer to home. To further save travel dollars, domestic travelers want the most bang for their getaway bucks. Vacation homes provide all the comforts and options of home (eating in, game rooms, wireless access, etc.), often at a per-person rate that's cheaper than a hotel.
A vacation home can pay for itself. If your monthly mortgage payment is less than or equal to one peak week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals.
The calculations don't consider the added cost of a property manger you may need if you are not a do-it-yourselfer.
Despite the convergence of positive factors pointing to an opportunity to buy a second or vacations home, the fundamentals still apply. Strong credit, low debt, high savings and other assets are a plus.
If you have strong credit, you can find a lender who'll work with you. Also, don't rush into a decision. It's more important to take your time, make sure the property is right for you.
For more information or to ask lake real estatequestions, 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

Real Estate Outlook: Rates Drop

2008-12-29T11:53:00.001-08:00

If low-cost mortgage money and property prices provide the fuel to power strong housing sales, we just might be on the verge of a takeoff, at least a modest one.
In a month that otherwise was filled with sobering economic numbers -- new construction starts down sharply, unemployment filings up, retail spending down -- mortgage rates provided a ray of hope for real estate in the months ahead.
The Federal Reserve's unprecedented moves to reduce inter-bank lending rates close to zero, and to pump even more capital into mortgage backed securities, had immediate, dramatic effects in the market.
Rates had already begun falling from about five and a half percent early in December down to 5.19 percent in the last week for 30 year fixed-rate loans, according to the Mortgage Bankers Association.
But the Fed's latest moves sent rates plummeting even lower. Some major banks, such as Wells Fargo, were quoting 30-year mortgages in the upper fours -- rates not seen in more than half a century.
Wells, Wachovia and other banks also cut their prime rates -- crucial to millions of consumers who have home equity credit lines and credit cards -- to three and a quarter percent from four.
But here's the big unanswered question: What impact will mortgage money at historic lows have on local real estate markets in a recession with rising unemployment?
Lawrence Yun, chief economist for the National Association of Realtors, has estimated that 500,000 resales could be stimulated by a one point drop in rates like we've just seen.
The reason: He believes that, even with higher unemployment, there is a huge pent up demand to buy houses in many parts of the country -- especially first time purchasers who see prices at 2003 and 2004 levels.
Combine those bargain prices with rock bottom mortgage rates, and the real issue for thousands of potential buyers in the coming months may well be: What are you waiting for? This is about as good as it gets!
Already there are signs of sharp sales increases in dozens of markets where foreclosures, REO and short sales dominate local real estate listings.
As perhaps an extreme example, the single hardest hit market of the decade in the U.S. -- Detroit -- which has been the epicenter of a regional economic downturn for years, has racked up a 47 percent increase in home sales this year, compared with 2007.
No doubt a lot of those sales were REO. But think about it: How else can the turnaround process begin?
For more information or to ask lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Real Estate Outlook: Sales Picking Up Tempo

2008-12-29T11:52:00.000-08:00

Here's a key question about the current market: Do you look at home prices to figure out where we are in the real estate recovery cycle, or do you focus on sales?

In an economy where an estimated 35 to 40 percent of all home transactions are foreclosures or short sales - distress situations in other words -- prices won't really guide you much beyond the conclusion that: We're still "correcting” the excesses of the boom years, still peeling back those wild and unsustainable hyperinflationary price run ups.
So it's no surprise that median prices are down, year to year, in a majority of large markets across the country.

Sales statistics, on the other hand, tell you how fast buyers are responding to those lower prices -- and greatly improved affordability. Right now, in market after market, sales are picking up tempo -- especially in places where prices once spiraled out of control.
Third quarter sales of existing homes in the U.S. were up by 2.6 percent over second quarter 2008 levels, according to the National Association of Realtors' latest study.
That's not spectacular -- but let's face it: It's forward movement … and we're in a recession.

In the Western states, sales were up by 13.1 percent in the third quarter! In Florida, sales jumped by 5 percent from year earlier levels, while median selling prices were down by 20 percent. In a majority of Florida's metropolitan markets, sales were up, year over year. For example, Orlando sales were 10 percent higher this October than the year before. Sales were up strongly as well in hard-hit Ft. Myers and much of the west coast of the state, and Fort Lauderdale, north of Miami. Similar recent upturns in sales are occurring in many of the California markets where prices have plummeted during the past two years.

No question that a high proportion of these sales are distress situations. But that's what the bottom of a real estate cycle looks like: Value-savvy buyers see the opportunities, move in and mop up the mess left over after the big party. Happily, in this cycle, they're getting real help from the capital markets: Mortgage money is at historically-attractive low levels, and is readily available to anyone with a downpayment and reasonable credit.
Rates fell again last week to an average 6.16 percent for 30-year fixed loans, according to the Mortgage Bankers Association, and to 5.87 percent on average for 15 year loans.
If you can spot the opportunities -- and have the resources -- it's not a bad time to be a buyer.

For more information or to ask lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

RECESSION NOT ALL GLOOM AND DOOM

2008-12-29T11:51:00.002-08:00

RECESSION NOT ALL GLOOM AND DOOM
The "R" word is back -- and this time economists ranging from former Fed chairman Alan Greenspan to the National Association of Realtors' Lawrence Yun agree that we're likely to be dealing with a declining economy for months to come. The U.S. has entered a recession," said Yun in his latest forecast, "and (the economy) will contract for the next three quarters."
Certainly the sobering reports we're seeing on retail sales point in that direction, and the stock market's sharp declines over the past few weeks suggest that investors are betting we're in a recession as well. But are all recessions always horrible times for real estate and home sales? You might be surprised to find that as long as mortgage money remains available, and home prices are affordable, real estate sometimes can weather recessions better than other segments of the economy.
Take the last national recession we experienced -- back in the years 2001 to 2003. Regional economies went flat or declined, consumer spending spiraled down, and nearly two million jobs were lost. Times were tough for a lot of families -- no question about it. But the vast majority of households kept their jobs, and people needed houses.
Sales of existing homes actually ran counter to the overall economic trends during that recession, with total sales rising from 5.2 million in 2001 to 6.2 million in 2003, according to National Association of Realtors data. Even sales of newly-constructed homes rose during that recession as well -- from 900,000 to 1.1 million.
Now, no one can be confident that the same countercyclical pattern will occur in a short, relatively shallow recession this time around. But some building blocks are in place: First, mortgage rates are lower than they were during 2001, 2002 and most of 2003. Lenders working through FHA, Fannie Mae and Freddie Mac have direct, federally-backed access to the capital markets.
Second, a $7,500 home buyer tax credit is already in place to provide an extra incentive to get potential purchasers off the sidelines, plus there are legislative stimulus package efforts in the works to increase the size of that credit, and extend it.
Finally, home prices in many local markets have corrected back to levels not seen since 2003 and 2004.
Combined with affordable mortgage money and unquestioned pent-up demand, housing's performance might -- just might -- surprise a lot of people who assume recessions are necessarily all bad, all the time.
For more information or to ask lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Selling Your Home in Todays Market

2008-12-29T11:51:00.001-08:00

Selling Your Home in Today's Market: The media has been full of stories about the slowing housing market --and although this kind of market normalization is commonplace in the real estate industry, there is no question that in many parts of the country, houses are currently on the market a little longer and there is more competition for buyers.
Hire a Professional: If you want to sell your home, now is not the time to go it alone or possibly even worse; choose an agent based solely on their personal relationship to you. You want to make sure that your home gets the maximum exposure and the best marketing strategy. When you work with an experienced, knowledgeable real estate professional, not only is your home listed on the MLS database that other real estate agents can access your agent should also market your home to Lake area agents to make it stand out from competing houses. In addition, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues at Lake of the Ozarks.
When selecting someone to represent you, interview at least three real estate professionals who are familiar with your area. Ask questions such as: How will your home be marketed to reach the greatest number of buyers? Ask to see examples of their ongoing marketing campaigns both for individual listings as well as their overall strategy for obtaining a constant supply of prospective buyers who are looking for their ideal lake property. They should have an extensive client base already in place to whom they can immediately present your home. Ask what price can you expect for your home? A knowledgeable agent should be able to back up their answer with a report of recent sales and current listings in your particular neighborhood. Ask what's the average time their listings have been on the market? What is their sales track record? How many years of experience do they have in Lake of the Ozarks Real Estate and are they a full time real estate career professional? Ask them to provide the names of two or three of their most recent sellers who you may contact for a reference.
Price It Right: A correctly price house piques the interest of real estate professionals and buyers, while overpricing chases them away. If your home is priced too high, interested buyers may never even look at your home. It is true that you can always drop the price, but the first 30 days are the most critical. That is when interest is the highest, and it can be difficult to recapture people's interest later on. The longer the property is on the market, the fewer the prospects and in general, the lower the sales price at closing.
Who’s representing you at the negotiating table? Michael Elliott has been a full time real estate career professional since 1981. He is a Broker/Owner at Gattermeir Elliott Real Estate Company. Michael has assisted hundreds of buyers and sellers over the years. His largest source of business is from returning clients and referrals of their friends and family. His largest source of new business is derived from his unique and extensive marketing campaign.
For more information or to ask lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Now is the Time to Secure a Great Real Estate Deal at the Lake

2008-09-06T09:54:00.000-07:00

Lake Real Estate values continue to increase and although the number of sales are down this year, the average time on the market remains the same as last year. If you are considering purchasing a lake property or adding to your investment portfolio, now is an excellent time to do so. Waiting a year or two to “see if the market will drop” may very well cost you as much as 5% to 20% more on your purchase price. Just this year our residential values are up almost 5% and that is after the so-called bubble burst.

Gattermeir Elliott is promoting a Summer Sell Down event at Tuscany Condominiums. Developers are offering up to $40,000 price reductions on select developer owned units.

Tuscany is located at the 31 mile marker by water and on Lake Road 5-31, Pier 31 Road by land. Tuscany offers 2 and 3 bedroom units with stunning lake views. Garages, PWC slips and up to 16’x40’ covered slips are available and water and shore power is offered.

The complex includes a large lakeside pool, clubhouse, elevators and exquisite landscaping. A vast array of custom options are available for new units.

On Saturday, September 6th from 10 a.m. to 4 p.m. visit an open house with two homes side by side at a total package price of $1,839,500. Situated on an interior point lot in six mile cove these two adjoining properties total 184’ of gentle lakefront with lakeside pool and two large dock systems, each with cruiser slips., 9 bedrooms, 11 baths with a total of 10,125 square feet of living area plus multiple outdoor entertainment areas. Located on a private end of cul de sac setting, these homes are also available separately. Take Horseshoe Bend Parkway to Cherokee, to Linn Creek to Cornett Branch Road to Ginseng Court or view the Visual Tour at www.GinsengCourt.com

For more information on these properties or other lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Home Sales Rise Modestly Before Upturn in Second Half Of 2008

2008-08-04T12:17:00.000-07:00

A modest gain in the level of home sales occurred in the first half of the year and an improvement is forecast for the second half of this year as more buyers are able to access affordable mortgages, according to the latest forecast by the National Association of Realtors®.
The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in April, rose 6.3 percent to 88.2 from a reading of 83.0 in March. It’s the highest index since last October.
The PHSI in the West rose 8.3 percent to 98.8 in April and is 4.0 percent higher than April 2007. In the Midwest, the index jumped 13.0 percent to 83.7 in April. The index in the South increased 4.6 percent to 88.8 and, in the Northeast, the index declined 1.9 percent in April to 79.3.
NAR President Richard F. Gaylord said the market may be breaking its holding pattern. "It appears that more buyers are realizing they can take advantage of a favorable combination of mortgage interest rates, home prices and family income," he said. "Overall affordability conditions are the best we’ve seen since the middle of the housing boom in 2004, but with far more choices and much less pressure than buyers experienced four years ago to make an investment in their future. Recent declines in mortgage rates on conforming jumbo loans and a return to sound but not overly stringent underwriting standards will permit more people to qualify for a loan."
NAR’s housing affordability index has been trending up this year and is projected to rise 15 percentage points to 128.0 for all of 2008.
Yun said the underlying fundamentals point to a pent-up demand. "Home sales are at about the same level as they were 10 years ago, yet the population has grown by 25 million people and we have over 10 million more jobs," he said. "The housing market has been underperforming by historical standards, partly because buyers were hampered by mortgage availability issues, but that’s improved and an upturn is more likely. On the other hand, it’s unclear what role consumer confidence will play in the coming months."
Existing-home sales should increase from an annual pace of 5.05 million in the second quarter to 5.83 million in the fourth quarter. For all of this year, existing-home sales are expected to total 5.40 million, and then rise 6.3 percent to 5.74 million in 2009. "Sales gains will be greatest in areas that underwent sharp price declines," Yun said.

Fore more information on Lake Real Estate values, contact Michael at 877.365.cme1 (2631) OR cme@yourlake.com

Strong Lake Market

2008-06-25T08:42:00.000-07:00

When I began my real estate career in 1981, interest rates were 18%, real estate sales were at an all time low and you were lucky to break even on reselling a condo.

Since that time I have experienced several up and down markets, record low interest rates and record high real estate appreciation. I saw the first $1 Million home come on the market in the mid 80’s.

Over the past 5 years, real estate has appreciated an average of 13.2% each year. According to the Bagnell Dam and Lake of the Ozarks Multiple Listing System; currently there are 114 homes listed at $1 Million and up and 1,420 new and resale condominium units available.

As of this Spring there were almost 6,000 condo units slated for construction in the next few years and numerous new subdivisions are being created on parcels reclaimed from old “Mom and Pop” resorts as well as on vacant land increasingly further up the lake.

The Lake has experienced its ups and down along with the rest of the country but has not seen the wild swings other markets such as Florida, California, Nevada and Arizona have dealt with. Where we have had huge growth over the past five years we are now seeing a return to a more balanced market. Property values are remaining steady and there is not a decline in prices here at the Lake.

Turn to any news media and you see scary “gloom and doom” statistics being touted across the nation. What they don’t report is that 32% of homeowners have their home paid for according to the National Association of Realtors and out of homeowners with a mortgage only 9% have subprime loans. Missouri’s foreclosure rate is just at 1.4%.

Real Estate is still the best investment going and Lake of the Ozarks has proven itself to be a stable market through times of decline in many other areas. You need to do your research and make sure you have the assistance of a knowledgeable real estate agent to help you determine which areas of the lake are the best value and to show you reports of comparable sales to guide you in making a decision about price.

A great agent can also help you establish a relationship with a reputable lender and will be a strong advocate for you in negotiations.

If you have a question about real estate or would like to express your opinion about real estate activity at the lake, visit www.AsTheLakeChurns.com

Second Home Sales Account for One-Third of 2007 Transactions

2008-05-29T11:46:00.000-07:00

Second-Home Sales Accounted For One-Third of Transactions in 2007
The combined total of vacation- and investment-home sales declined with the overall market in 2007, but still accounted for 33 percent of all existing- and new-home sales, which is close to historic norms, according to the National Association of REALTORS® (NAR).
The market share of homes purchased for investment last year was 21 percent, while another 12 percent were vacation homes.
Fifty-nine percent of vacation homes purchased in 2007 were detached single-family homes, 29 percent condos, 7 percent townhouses and 5 percent other. In 2006, single family homes accounted for 67 percent of vacation-home sales, while condos were 21 percent.
There were no significant changes in investment housing types. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20 percent condos, 11 percent townhouses and 8 percent other. Twenty-eight percent of vacation-home buyers paid cash for their property, as did 35 percent of investment buyers.
Sixty-five percent of vacation-home buyers and 71 percent of investment-home buyers purchased existing homes, while the remainder purchased new homes.
The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.
In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent to use as a primary residence in the future; 26 percent to diversify investments; 25 percent to rent to others; 16 percent for the tax benefits; 14 percent for use by a family member, friend or relative; and 6 percent because they had extra money to spend.
Last year, 19 percent of vacation homes were purchased in the Northeast, 16 percent in the Midwest, 41 percent in the South and 24 percent in the West. In terms of location, 30 percent of vacation homes were purchased in rural areas, 20 percent in resorts, 20 percent in a suburb and 14 percent in an urban area or central city.
Eight in 10 second-home buyers consider it a good time to invest in real estate, compared with 59 percent of primary residence buyers. Forty-four percent of vacation-home buyers and 57 percent of investment buyers said they were likely to purchase another property within two years.
If you have a real estate question or would like to express an opinion about real estate activity at the lake, log on to www.AsTheLakeChurns.com