December Lake of the Ozarks Real Estate Update

The lake area real estate market has seen continuing recovery over the past year and 2014 brought a modest increase in home sales and values.  The latest updates from industry reports show positive indicators on a national front that I feel apply locally as well.

As I reported last month,  the new home market is finally improving, as demonstrated by single-family housing starts­—the number of privately owned housing units on which construction has begun. Single-family starts in October were at the second-highest level in more than six years. Homebuilders are encouraged by this increase in activity, as builder confidence also improved this month. The National Association of Home Builder’s Housing Market Index reached its second-highest level since November 2005, which was before the housing downturn began. The index reading is now at 58, which is 7% higher than last year.

October broke the 11-month streak of year-over-year declines in total home sales. In October, we reached an annualized rate of 5.26 million sales, which was 2.5% higher than last year. The pace of existing home sales has increased in six of the seven previous months.

The quality of sales is improving, with a substantial drop in the volume of distressed sales. If you look solely at good old-fashioned, non-distressed sales, October was up 2.6% over September and 8.2% over last year. It’s beginning to look a lot like a recovery.

Tight supply remains a factor holding back the potential volume of home sales. The inventory of existing homes for sale fell 2.6% to 2.22 million homes, or 5.1 months of supply at the current pace of sales. And while the pace of single-family construction is finally growing again, the growth is not enough to keep up with increasing demand.

The housing market’s positive momentum reflects a substantially improving economy, and critical economic leading indicators point to even more growth ahead.

Michael has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com   You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

October Lake of the Ozarks Real Estate Update

     Last month I reported that Camden County new home building permits have increased over 100% this year compared to 2011.   Recently a client, Kelly Kenter, President of Sitelines, Inc. a full service construction firm based in St. Louis, shared positive related news from his industry with me.  At the end of August, the American Institute of Architects (AIA) announced the Architecture Billing Index (ABI) reached its highest mark since 2007. The ABI is used as an economic indicator for future construction activity based on design billing from architecture firms. It reflects the nine to twelve month lead time between architecture billings and construction spending. The current high mark of the ABI forecasts good news for those in the contracting and construction world. As more projects are being designed, in nine to twelve months, a greater demand can be expected in the construction industry.

     The number of sales of all properties is down 2% from last year but has risen 40% above the previous 10 year low point in 2009.  Sales of condominium units are down 3.6% from 2013; unit sales have risen 35.1% over 2009.  Average condo sales prices are up 6.5% from 2013. 

     Lakefront home closings are up 6.4% compared to 2013 and stand at 45.6% more than 2009.  The average sales price is down 5.8% from last year but when comparing the average price per square foot, 2014 price per SF was almost identical to 2013 (2014 was 7 cents higher). 

     2005 was the peak year in terms of the number of properties sold.  Since that time, the average sales price of both lakefront homes and condos then reached its peak in 2007.  2009 brought the low point in total number of sales followed by the average sales price bottoming in 2012.   

     The road to recovery has been a little bumpy and sales are certainly well below the peak times we enjoyed.  I do feel that we are seeing a nice, steady recovery and given that sales jumped so rapidly to the high points, our current market is much more stable. 

     Buyer interest continues to be high and I feel that we will see a strong fall market.  Inventory continues to drop and as excitement builds in seeing relief in the market recovery; the inventory of accurately priced homes is in great demand. 

     Sales data was obtained from the Bagnell Dam and Lake of the Ozarks Board of Realtors MLS from January 1, 2005 through September 15, 2014.

     Michael has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com $1 million plus homes at www.LakeMansions.com   You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

September Lake of the Ozarks Real Estate Update

Sales Activity has increased over the Summer season after a lull in the Spring market.  Many reports have attributed it to the severe weather we experienced.  Based on the fact that I worked successfully with several clients during the worst of the weather and that the downtrend was nationwide regardless of location, I have a hard time blaming it on climate conditions.  I personally feel many buyers and sellers were hesitant to move forward due to the unrest felt in the country and unknown future outcome of various legislation.  Whether your opinions are pro or con on the laws enacted, it has affected our marketplace.

     Total sales this year stand at 1559.  This is slightly below last year at this time, 2013 total sales were 1592.  However it is a healthy increase of 36.3% over 5 years ago in 2010.

     Commercial movement is increasing.  Some current construction includes the new hotel and conference center at Old Kinderhook and excavation is in process at Eagles Landing in Lake Ozark.  There is much speculation about what new business will be located there.  42 commercial sales have closed so far this year with an additional 17 properties under contract.  This is huge increase of 162.5% over 2010.

     Residential building permits in Camden County have steadily climbed from 15 in 2011 to 32 this year.  Information is based on reports from Camden County with data available from January 1, 2011 thru July 22, 2013. 

     The luxury home market is seeing some relief.  In 2010 only 6 lakefront homes were sold over the $1 million mark.  This year 15 homes priced over $1 million have closed to date with another 4 currently under contract.  If you would like to view homes that are available at $1 million and up, you can visit my website at www.LakeMansions.com

     Sales data was obtained from the Bagnell Dam and Lake of the Ozarks Board of Realtors MLS from January 1, 2010 through August 25, 2013.

     Michael has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com.  You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

August Lake of the Ozarks Real Estate Update

About half of all sales at the lake are lakefront or lake access homes.  Many of these sales include a private boat dock.  When purchasing or selling a home, you need to be aware of the requirements by both Ameren Missouri and the appropriate fire protection district in order to transfer the dock permit to the buyer. 

     When a property located in the Osage Beach or Lake Ozark Fire Protection District or Village of Four Seasons transfers ownership, an inspection of the electrical system on the dock must be made by the Fire District or the Village before transferring the dock permit to the new owners. A copy of this inspection approval must be submitted with the permit transfer application to Ameren Missouri.

     All Lake Area Fire Districts and the Village of Four Seasons require a permit and inspection when installing or modifying a dock as well as any time work is being performed on the electrical system of a dock.  In order to complete the initial or modification dock permitting process, Ameren Missouri requires a copy of the Inspection Approval. 

     If you are selling your property with a dock, I recommend that you complete the electrical inspection approval as soon as possible.  Due to an onslaught of inspection requests, some of the districts have up to a 6 week backlog.  This could possible cause a delay in the closing of your home if you wait until you have a contract in place to start the inspection process.  Also, if there are any items that need attention, you will be able to address these and present this information to potential buyers.  The added benefit to you is knowing that your dock is safe while you and your family continue to use it.

     When you are purchasing a property with a dock you should make sure that the dock is properly permitted with Ameren Missouri and that there have not been any changes since the permit was issued.  If required, you will also need to request an electrical inspection from the proper entity in order to have the dock permit transferred into your name.  This will allow you to discover any potential issues prior to closing in the event that there are compliance problems that need to be addressed.

     If your property is not for sale or is not located in an area that requires an electrical inspection for the transfer of the permit, I highly recommend that you still contact the appropriate agency for an inspection.  Most of the districts charge a $50 fee for the inspection.  In my opinion this is a bargain, especially if you consider the potential cost of having an electrical issue on or around your dock.

     AmerenMissouri.com/Lake has a wealth of information on their website about permit requirements including contact information for fire districts and other inspection agencies.

     Michael has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD or cme@yourlake.com  View thousands of lake area listings at www.YourLake.com.  You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

July Lake of the Ozarks Real Estate Update

This month I’m going to review a breakdown of the property sales so far this year.  This will include property types as well as location.  Obviously within any given property type there are still a lot of variables so if you have questions on how a specific property fits in the whole scheme of things as far as what is selling, please contact me with the details.

Through June 15, 2014 there have been 934 properties sold via the Bagnell Dam/Lake of the Ozarks MLS system.  62.8% Homes, 22.6% Condos, 11.1% Lots/Vacant Land, 13.3% Commercial,.  As you can see, 85.5% of sales were residential dwellings.

The home sales breakdown is as follows:  43.1% lakefront homes, 13.4% lakeview and/or lakeaccess homes, 39.8% offwater homes and 3.5% Villas. 

Lots & Vacant Land Sales:  25% lakefront lots, 15.3% lakeview and/or lakeaccess, 59.6% offwater lots.  In reviewing the offwater lot sales; the majority of these were acreages ranging from 5-80 acres but sales also included small building lots, 14.5% were golf course lots and one larger tract with 205 acres sold at $229,250 and had a couple of cabins, ponds and was a hunting retreat.

Condo sales were concentrated in the Lake Ozark (includes Horseshoe Bend/Four Seasons and some Northshore), Osage Beach and Camdenton areas totaled 89.5% of the market.  With Lake Ozark and Osage Beach each accounting for 33.1%  of total condo sales and Camdenton with 23.2% of sales.

In general, I saw a slow down in activity in May and the beginning of June.  The middle of June, I am seeing more activity primarily in the lower price condo range.  Sellers and buyers are beginning to come together better in negotiations.  Some are still on opposite poles with sellers holding out based on prior values and buyers are still looking at the decrease in the market and trying to make a deal.   In general, I see more educated buyers and sellers in regards to the market values and I feel that I and my fellow Realtors are doing a good job of taking the time to help them see the true picture.

Michael has been selling real estate at the Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at 573.365.SOLD  cme@yourlake.com  View thousands of lake area listings at www.YourLake.com.  You can also view each months’ article, ask questions and offer your opinion on Michael’s real estate blog, www.AsTheLakeChurns.com

June Lake of the Ozarks Real Estate Update

Lakefront Home and Condo Sales

This month I have compiled the data on lakefront home and condo sales for a 10 year overview of the market.  The chart represents sales in 2005 thru 2014 comparing January 1 thru May 15 of each year and was obtained from the Lake of the Ozarks/Bagnell Dam AOR MLS.

As you look at the average sales prices, you can follow the rising values up to the 2008-09 time frame.  In 2009-2010 values began to fall then bumped up and down through today.  I cringe to say this, but based on what I see from working daily in this market as well as looking at the sales data, many properties are realistically worth what they were in 2005.

I realize that this data combines all property types and locations.  There are many areas that I see decent value increases while other still continue to remain stagnant or even lose value.  If you would like a detailed sales report and value for your specific property type or neighborhood, please contact me.

Michael has been selling real estate at Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like to work with Michael in the sale or purchase of property, contact him at C. Michael Elliott & Associates at 573.365.SOLD.  You can also view each month’s article, ask questions and offer your opinion on his blog at www.AsTheLakeChurns.com  and Search and view thousands of lake area listings at www.YourLake.com

May Lake of the Ozarks Real Estate Update

Home Warranty Plans

Frequently in the home buying or selling process, buyers encounter homes whose sellers are offering home warranties.  Both buyers and seller (and some agents) are frequently under the impression that these warranties cover most, if not all, costs to repair or replace things that fail in the home.

A home warranty is a contractual agreement provided to an owner of a house by any of a number of different types of entities. In the case of this article, I am referring to “home warranty” companies.   The home warranty industry was founded in 1971 by American Home Shield.  In the strictest legal sense a warranty of any kind must adhere to guidelines set at the states' and federal government's levels. But the word “warranty” is not always used explicitly to mean a legal warranty is being conveyed. Usually, a home warranty is not a warranty at all but rather a home service contract that covers the repair and/or replacement costs of home appliances, plumbing, heating and cooling and electrical systems, and possibly other components. Coverage and costs vary significantly across home warranty companies and home warranty contracts do not cover all home repairs.

Some home plans are more expensive and cover more items while others are more limited.  Most require that you pay a service fee, around $50 to $100 per incident and also have a maximum amount that they will pay per covered item and a limit on what they will pay in total.  Be sure that you are aware of what the coverage exclusions are and if the company pays the full cost of replacing an item or its depreciated value. 

Some common complaints that home warranty clients have about warranty companies are:            1. Deny the claim citing homeowner's maintenance negligence or “pre-existing problem”

2.  Repair the equipment even when it is in such bad shape as to be replaced (which may keep it running until your warranty ends)

3.  Utilize sub-standard service providers (the warranty company chooses the provider), this issue is often attributed to the fact that they have negotiated lower rates from these providers

Most warranty companies have a “Sample” Coverage Terms document that outlines what is included and excluded as well as some other terms.  These generally look pretty good.  Many have fine (miniscule) print that references a cover/front page that details specific coverage on the particular home.  Make sure you have all information before making a decision.

One of the best preventive measures you can take to reduce the risk of nasty equipment failure surprise after closing is to schedule a thorough home inspection (by a reputable, knowledgeable company).  Your purchase contract should allow for an inspection and have a date by which you must complete and report any issues to the seller.  If their response is that the home warranty will cover it, look over the coverage terms AND make a call to the warranty company to verify this.

A great resource for home warranty information and reviews of existing companies as well as a list of ones no longer in business (some reportedly still selling warranties).  www.HomeWarrantyReviews.com Reports I have read state that around 20 companies went out of business between 2013 and 2014.    

A home warranty can be a great asset, you just need to do a little homework to make sure you know as a seller what you are offering and as a buyer what you are receiving.  

Michael has been selling real estate at Lake of the Ozarks since 1981.  He is one of the most respected brokers in the area.  If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD.  You can also view each month’s article, ask questions and offer your opinion on his blog at www.AsTheLakeChurns.com

 

 

 

 

April Lake of the Ozarks Real Estate Update

Total condo sales rose again in 2013, up 9% over 2012.  The 2013 numbers represent an increase of 29.6% over the low points that occurred in both 2009 and 2011.  Below is a chart detailing the condo units sold each year in varying price points.  As we saw in the upper end home market, the upper condo range has flattened out with sales over $300,000 being almost non-existent the past 12 months. 

There are currently a total of 735 units actively on the market.  In addition, there are currently 55 units under contract.

All data is from the Lake of the Ozarks Multiple Listing Service for the dates and years shown.

My office will be hosting the May Business Journal Social at Bootlegger’s on Thursday, May 8th, stop by to visit and kick off another great season at Lake of the Ozarks.

If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD.  You can also view each month’s article, ask questions and offer your opinion on my blog at www.AsTheLakeChurns.com

March Lake of the Ozarks Real Estate Update

     Below is a comparison of lakefront home sales in 2012 and 2013 at Lake of the Ozarks.  2013 saw a small increase in the number of homes sold with 7 more sales than in 2012.  The market saw a slight shift in number of homes sold in the various price ranges with the $500,001 to $800,000 price points seeing the largest gains.  The $100,001 to $200,000 range was still the largest part of the market making for 31.2% of sales however this was a decrease from its share of 34.1% of the market in 2012.  The luxury home market also showed very modest improvement, the increases are not large; however this is a small part of our overall market.

 

 

   I feel the decrease of sales in the lower price range is mainly a result of a reduction of inventory due both to sales and rising home values.  (You cannot purchase the same home for $200,000 as you were able to just 2 years ago.)   As I’ve reported in the past, the luxury home market took one of the biggest hits in terms of both number of sales and values.  It is promising to see a return in confidence of buyers in this market.  I do feel the sales in this range have been driven by price adjustments.  I feel this market will rebound more slowly in part due to the fact that many of the luxury home sellers are able and willing to wait for market values to increase rather than reduce their prices.  The increase in the mid to upper range is very exciting as this represents a portion of the market where pent up demand is being seen as a surge of buyers who have held off on purchases due to the uncertain economic climate are moving forward.

     Last month’s article did not make the February Business Journal issue due to an error on my part.  I apologize to any readers who missed this.  I reported on the sales activity over the past five years broken down by property type.  This report showed a steady increase in sales with 2013 showing increases in all property types.  If you didn’t receive a copy of the report from me via email or read it on my blog, you can access it at www.AsTheLakeChurns.com or send me an email and I’ll get it right to you.      Sales info: Lake of the Ozarks MLS for all times reported.

    If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD or cme@yourlake.com.     

February Lake of the Ozarks Real Estate Update

     Below is a report of sales activity at Lake of the Ozarks over the past five years and include sales from 2010 through 2013.  As you can see, the sales have been steadily increasing with 2013 showing increases in all property types.

 

    Data is based on information from the Bagnell Dam Association and Lake of the Ozarks Board of Realtors MLS for all times reported as of January 14, 2013.

    If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD or cme@yourlake.com.   You can view thousands of lake area listings with photos and virtual tours at www.YourLake.com   You can also log your opinions and ask questions on Michael’s real estate blog, www.AsTheLakeChurns.com

 

January Lake of the Ozarks Real Estate Update

Recent reports show that both Lake Ozark and Osage Beach’s sales tax revenue is up this year. Lake Ozark’s revenue has increased by 26% and Osage Beach is up 1.6% over 2012. New retail developments in both cities have played a large part in this uptick and in Osage Beach, Prewitt’s Point and Dierbergs generated $510,000 in tax revenue. Nationally, homes values roses 7.9% over last year. This is the 2nd yearly gain in a row and in 2012 and 2013 homes have gained back about 44% of the total value lost from 2007 through 2011 when values decreased each year. Locally, home sales continue to increase in numbers and value. A total of 1,462 lake area homes have sold as of December 20, 2013. This is an increase of 7.1% over 2012 sales of the same time frame. Data gathered from Lake of the Ozarks MLS for all dates noted. Broken down by property type, here’s an overview of how the sales shook out:

I recently responded to a person who posted a request for advice via an online real estate forum. Following is the question along with my response. Question: What do new house buyers look for in their real estate Agent? Does personality really matter? Answer: Buyers should look for an agent with experience, knowledge of the area they are purchasing in, knowledge of the real estate process, good negotiation skills, honesty and integrity, a good reputation among the community, fellow agents and previous clients, patience and the time available to work with them based on their needs. Personality does matter; a buyer should feel at ease with an agent as they will be spending a great deal of time together. Their agent will also be working with other agents, lenders, inspectors, title companies etc.,so a good personality along with the aforementioned traits will benefit the buyer when their agent deals with other people on their behalf. If you have a question regarding real estate, please feel free to call, email, or post a message on my blog. I’ll get back to you promptly. If you would like a detailed sales report and value for your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 573.365.SOLD or cme@yourlake.com. You can view thousands of lake area listings with photos and virtual tours at www.YourLake.com You can also log your opinions and ask questions on Michael’s real estate blog, www.AsTheLakeChurns.com