August Real Estate Update

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