What a difference a year makes!
Last year came out of the gates strong. Compared to January of 2019, January 2020 total closed transactions had increased 20.28 percent, total dollar volume 37.6 percent and average sales price 14.4 percent.
Lakefront home sales had increased immensely. January 2020 Lakefront home closed transactions were up 28.6 percent, total dollar volume increased 62.3 percent and the average sales price increased 25.25 percent from January 2019. New listings decreased 14.6 percent and days on the market averaged 5 percent less than in 2019.
In February and March the closed transactions continued to increase year over years but each month the gains were less, new listings began to increase as did days on the market. In April, things really changed abruptly. New listings dropped by 45 percent compared to 2019, closed transactions dropped 18 percent and sales volume dropped 14 percent.
By the end of May 2020, the downward effects of the pandemic on the lake real estate market had eliminated most of the gains from the early months. Total closed transactions were down 5.56 percent year over year, total closed sales volume was even with the previous year and the average sales price was up just 5.75 percent.
One year later. We’ve watched most properties spend limited days on the market and enjoy multiple offers. The number of properties sold in 2021 has increased 44 percent compared to 2020. There is a 101 percent increased in total sold volume year to date. The average sales price has increased 39.87 percent for 2021 sales compared to those closed in 2020. There is also a 15.28 percent decrease in time on the market. These numbers include all properties types.
It’s a little difficult to compare this year vs last due to the pandemic and the toll it took on the second quarter of the year. It is important to keep in mind that while there has been huge increases this year, there were some pretty big decreases or adjustments to the market during the early months of the pandemic. Even so, it’s no difficulty to see that the pandemic drove our market up in a way that we have never experienced.
I have noticed over the last two to three weeks of May that there has been a slight slow down to the frenetic activity of the past year. I am seeing properties sit a little longer on the market and I am seeing more price reductions. I don’t feel we are headed for any major change, but I do think that we’ve hit a ceiling on prices. There are a lot of buyers who are ready and able to purchase but who are not willing to overpay. I think we are reaching the point where prices will begin to even out and not climb as rapidly.
C. Michael Elliott & Associates is sponsoring Hot Summer Nights second Friday night of each month on the Bagnell Dam Strip. Lots of great food, music, events, and my favorite, cool cars cruising the strip. Karen and I will be there with my new (old) ride on June 11th. If you haven’t been to the Lake Ozark Strip lately, you’ll be impressed.
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. Data obtained from the Lake of the Ozarks Multiple Listing System for 2019 and 2020.