Lakefront lot sales are on the rise and I
expect 2018 to see more sales than in any of the previous 10 years. In 2017, waterfront lot sales were up 46%
over the previous year. This year,
January and February lot closings were double and triple that of any of the
previous 10 years closings in a month to month comparison.
Over the previous 15 years, 2005 had the
largest number of lakefront lots sales with 290 lot sale closings. The low point was in 2011 with just 35 sales
closed. Since 2009, lakefront lot sales
have stayed under 100 closings per year.
The lakefront home market continues to
have an inventory shortage and existing home prices keep rising. The demand for homes will drive an increase
in building and we are beginning to see this come into play.
Over the previous 5 years, the available
lot inventory has hovered mostly in the low to mid 500s range. The highest lot inventory was in September of
2015 with 566 lots and the lowest inventory was January of 2014 with 429 lots
available. Currently, there are 440
lakefront lots on the market.
Nationwide building permits reported by
the U.S. Department of Housing and Urban Development for privately owned
housing units increased in 2017 by 4.7% above the 2016 permits issued. The Midwest area showed building permits
increased by 9.2% in 2017 compared to 2016.
The lakefront home market continues to
be a strong seller’s market. The
lakefront lot market is currently transitioning to a neutral position between
buyers and sellers. Looking at existing
conditions, I believe we could very well see this shift further to a strong lot
seller’s market by Spring of 2019.
Sales
data obtained from the Lake of the Ozarks MLS comparing the time frame from
January 1, 2004 to March 5, 2018 and the U.S. Department of Housing and Urban
Development.
Michael Elliott 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
have interest in a career in real estate or would like Michael’s assistance in
the sale or purchase of property, you can reach 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
