New Year’s Market Uncertainty
Market activity over the previous seven days ending December 29th had thirty-five new listings to the market plus nine properties had sales contracts cancelled and are now back on the market. A total of fifty-six properties were placed under contract. While nine may not seem a large amount, it is considerable when you realize that it equals one-fourth the number of new listings. The most common reasons for failure are due to items discovered during inspections, property not appraising, buyer unable to obtain financing and, lately, buyer getting cold feet. I have been involved in more transactions this year where the buyer backs up and chooses not to complete a sale than I have any other year over the last thirty-nine years. I have spoken to numerous fellow agents experiencing the same circumstances.
I expect this situation to continue into 2021 for the first six months at a minimum. As we are all aware, there is a great deal of uncertainty in almost every aspect of life right now. Buyers are also facing much higher prices than just one year ago and are having to make cuts to their criteria list. Competition is fierce and when a new listing hits the market, buyers must move rapidly and be prepared to make quick decisions to have a shot at an accepted contract. These factors can make for nervous buyers and sometimes result in cold feet. There is an abundance of demand for lake property coupled with historically low inventory. The upside of this is that it allows sellers to move quickly to the next buyer.
Year to date sales comparisons as of December 29th , 2020 show the number of lakefront home sales up forty percent compared to 2019 and the average sales price up twenty-two percent. Off-water home sales increased seventeen percent both by amount and price. Condo units sold increased thirty-three percent and the average sales price of resale units rose seventeen percent. The number of Lakefront lot sales increased by one hundred and forty-seven percent and the average sales price was up by twenty-four percent. Total Off-water lot sales increased thirty-three percent with an increase of nineteen percent in the average sales price.
All sales data obtained from the Lake of the Ozarks Board of Realtors’ Multiple Listing System for the years 2019 and 2020.
C. Michael Elliott and Associates is a boutique, privately owned office with a great group of knowledgeable, topnotch agents and staff that will work in your best interest and are enjoyable to work with. We are happy to explain our services in detail and you can decide if we are a good fit for you.
C. 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.