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 firstname.lastname@example.org 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