December Lake of the Ozarks Real Estate Update

     I want to share an overview this month of the national real estate market activity.  Also, when compared with the statewide market activity in Missouri and Lake of the Ozarks activity, sales are continuing to look very good with continued growth for our area.

     Nationally, existing-home sales fell 3.4 percent in October but despite the decline, year to date sales are still 3.9 percent above a year ago.
     According to Lawrence Yun, National Association of Realtors® chief economist, the sales slowdown in October was likely due to the pullback in contract signings. "New and existing-home supply has struggled to improve so far this fall, leading to few choices for buyers and no easement of the ongoing affordability concerns still prevalent in some markets," he said.  "Furthermore, the mixed signals of slowing economic growth and volatility in the financial markets slightly tempered demand and contributed to the decreasing pace of sales."
     Adds Yun, "As long as solid job creation continues, a gradual easing of credit standards even with moderately higher mortgage rates should support steady demand and sales continuing to rise above a year ago."

The median existing-home price for all housing types was $219,600 in October – 5.4 percent higher than a year ago and marks the 44^th consecutive month of year-over-year gains.
    
     The following is an overview of how sales fared in October across the country:

·         October existing-home sales in the Northeast were at an annual rate of 760,000 home sales, unchanged from September and 8.6 percent above a year ago. The median price in the Northeast was $248,900, which is 1.3 percent above October 2014.

·         In the Midwest, existing-home sales declined 0.8 percent to an annual rate of 1.30 million home sales in October, but are 8.3 percent above October 2014. The median price in the Midwest was $172,300, up 5.7 percent from a year ago.

·         Existing-home sales in the South decreased 3.2 percent to an annual rate of 2.14 million home sales in October, but are still 0.5 percent above October 2014. The median price in the South was $188,800, up 6.2 percent from a year ago.

·         Existing-home sales in the West fell 8.7 percent to an annual rate of 1.16 million home sales in October, but are still 2.7 percent above a year ago. The median price in the West was $319,000, which is 8.0 percent above October 2014.

     According to the Missouri Association of Realtors October Market Summary the number of residential properties sold was up 10.7% YTD this year compared to 2014 and the median selling price rose by 7.3% to $173,106.  At mid-October 10.15% of currently listed properties were under contract.

On a final note, I hope all of you had a wonderful Thanksgiving, and I would like to thank all of our family, friends, clients and the realtor community who have helped us have such a successful year in 2015. Best wishes to everyone and a Merry Christmas & Happy New Year!!

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

November Lake of the Ozarks Real Estate Update

Third Quarter Sales; Recovery Continues

    Buyer interest is still high and we are experiencing a continuance of the strong fall market. 

Inventory continues to drop and as excitement builds in seeing ongoing relief in the market recovery; the inventory of accurately priced homes is in even greater demand.

 

    Residential building permits in Camden County made a huge jump to 70 so far this year from 32 in 2014. Information is based on reports from Camden County with data available thru September 30, 2015.

     Total 3^rd quarter sales this year stand at 2,042.  This is approximately 9% over the last year at the same time, 2014 total sales were 1,870.  However, we show a healthy increase of 25% over 3 years ago in 2012 when total sales where at 1,633. Recovery is looking better every year.

     Sales Activity has steadily increased over the last four years in Residential Lakefront, Condominium’s & Homes over a Million. Residential lakefront & offshore homes rose 9% over 2014 and Condominiums rose 12%. This year 44 waterfront lots have sold, about the same as 2014 but the dollar amount almost doubled – higher end lots are selling. 136 Offshore lots have sold this year so far, 17% more than 2014’s 3^rd quarter sales of 116. Farm sales went up this year by 42% with total sales so far at 17 whereas 2014 saw sales of just 12.

     Commercial movement continues to increase.  Some current construction in the works includes the planning of a new waterfront hotel and event space near the KK & Business 54 Intersection, a much needed potential revenue for the Westside Osage Beach economy including up to 300 possible jobs. 55 commercial sales have closed so far this year with an additional 10 properties under contract.  This is an increase of 16% over 2014 and a huge 150% increase over 2012 commercial sales.

    

     This year the luxury home market continues to grow with 19 homes priced over a million sold and 5 under contract so far in 2015, the same amount sold last year at this time but the selling dollar volume was 14% higher this year.  In 2012 only 6 lakefront homes were sold over the $1 million mark and 14 sold in 2013, a huge 156% increase.  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, 2012 through September 30th, 2015.

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

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