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
Monday, August 4, 2008
Wednesday, June 25, 2008
Strong Lake Market
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
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
Thursday, May 29, 2008
Second Home Sales Account for One-Third of 2007 Transactions
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
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
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