It's a Seller's Market
At
the rate lake property is selling, we’ll be sold out by Fall! Seriously, I have been selling lake area real
estate since 1981 and I have never seen inventory levels this low.
We have been experiencing low inventory
the past couple of years. This was
especially true in a price range up to $500,000 and somewhat extending up to
about $750,000 for lakefront homes and most condos. Upper end properties and vacant land were
not seeing much activity. Also,
properties with limitations like shallow water, cramped docking areas and
grossly overpriced properties simply were not moving. As this year has progressed, more buyers and
buyers willing to accept those limits just to get on the lake have drawn even
those inventories down. I am seeing
prices escalate and buyers willing to pay more based on that continual increase
however I am not seeing many buyers who are willing to pay a hugely inflated
number. They are doing their homework
and not setting themselves up to be upside in a home.
At this point, all price ranges are moving
and homes both on and off water, condos and vacant lots are all selling at a
rapid pace. There are currently just 169
lakefront homes available and 100 condo units.
Year to date there have been 558 lakefront home sales (closed) with 135
currently pending and 546 condo sales with 110 currently pending.
New listing of Lakefront homes have
dropped 12.5 percent in 2020 compared to 2019 and the number is down 27 percent
from June to July 2020. New condo
listings are 11.25 percent lower in 2020 year to date and down 7.62 percent
from June to July of this year.
Lakefront lot sales have increased 78
percent in 2020 compared to 2019 as we are starting to see buyers shift from
searching for an existing home to building.
There has also been a small increase in new condominium units under
construction and that trend will continue along with ground being broken on
spec homes.
I don’t look for us to see the traditional
slow down that we usually experience after Labor Day as remote learning and
work continue in much of the country. Area
schools are experiencing record numbers of new students and the lake post
offices are experiencing huge increases in residential delivery customers.
The
strong sellers’ market continues. I
believe it will continue to do so well into next year barring any unusual
events. I think it will start to ease
some in mid to late 2021 as more spec homes and condos are built, and prices
reach a point where the cost of building new vs. buying existing are not as far
apart.
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
would like to work with Michael in the sale or purchase of property, or have
interest in a career in real estate, contact him at 573.365.SOLD or cme@yourlake.com or stop by C. Michael Elliott &
Associates, 3738 Osage Beach Parkway.
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
