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
