October Real Estate Sales

Both here at Lake of the Ozarks and across the nation we are seeing encouraging numbers on the real estate front. New housing construction and increases in sales of existing homes continue to point toward a sustained recovery in the months ahead.
Existing-home sales in August 2009 gave back some of their strong gain in July but remain above year-ago levels, according to the National Association of Realtors®.
Existing-home sales- including single-family, townhomes, condominiums and co-ops- declined 2.7% in August vs. July but remain 3.4% above August 2008. In the previous four months, sales had risen a total of 15.2%.
Lawrence Yun, NAR chief economist, said the tax credit is working. “Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus. The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions,” he said.
Judging from the increase in real estate activity here at Lake of the Ozarks, I feel we can expect this continual, steady increase in sales through Fall and continuing into 2010. Median prices are showing modest increases as well both at the lake and nationally. I don’t see this as an increase in property values but rather an increase in the price ranges being sold which is another good indicator of consumer confidence beyond the buyer’s taking advantage of the first time buyer credit.
Mortgage Rates dropped about a fifth of a percent in mid August, pushing average 30 year fixed rates to 5.2 percent and 15 year rates to just 4.5 percent. The Mortgage Bankers Association reported that loan applications to purchase houses jumped four percent in August for three straight weeks of higher applications. The $8,000 tax credit is still in place for homes purchased before December 1st so many are taking advantage of all these factors to purchase a home.
I feel we are seeing the bottom of the residential real estate market at the lake. There are excellent values (or “deals” if you prefer) available right now. I’m not forecasting a skyrocketing return to the quick sales and increase in property values that we were experiencing a couple of years ago, overall lake area sales numbers are still down but they are starting to rebound.
Whatever your take on the overall economy, you've got to admit: It's looking much better out there for real estate.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Now is the Time to Secure a Great Real Estate Deal at the Lake

Lake Real Estate values continue to increase and although the number of sales are down this year, the average time on the market remains the same as last year. If you are considering purchasing a lake property or adding to your investment portfolio, now is an excellent time to do so. Waiting a year or two to “see if the market will drop” may very well cost you as much as 5% to 20% more on your purchase price. Just this year our residential values are up almost 5% and that is after the so-called bubble burst.

Gattermeir Elliott is promoting a Summer Sell Down event at Tuscany Condominiums. Developers are offering up to $40,000 price reductions on select developer owned units.

Tuscany is located at the 31 mile marker by water and on Lake Road 5-31, Pier 31 Road by land. Tuscany offers 2 and 3 bedroom units with stunning lake views. Garages, PWC slips and up to 16’x40’ covered slips are available and water and shore power is offered.

The complex includes a large lakeside pool, clubhouse, elevators and exquisite landscaping. A vast array of custom options are available for new units.

On Saturday, September 6th from 10 a.m. to 4 p.m. visit an open house with two homes side by side at a total package price of $1,839,500. Situated on an interior point lot in six mile cove these two adjoining properties total 184’ of gentle lakefront with lakeside pool and two large dock systems, each with cruiser slips., 9 bedrooms, 11 baths with a total of 10,125 square feet of living area plus multiple outdoor entertainment areas. Located on a private end of cul de sac setting, these homes are also available separately. Take Horseshoe Bend Parkway to Cherokee, to Linn Creek to Cornett Branch Road to Ginseng Court or view the Visual Tour at www.GinsengCourt.com

For more information on these properties or other lake real estate questions, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com

Second Home Sales Account for One-Third of 2007 Transactions

Second-Home Sales Accounted For One-Third of Transactions in 2007
The combined total of vacation- and investment-home sales declined with the overall market in 2007, but still accounted for 33 percent of all existing- and new-home sales, which is close to historic norms, according to the National Association of REALTORS® (NAR).
The market share of homes purchased for investment last year was 21 percent, while another 12 percent were vacation homes.
Fifty-nine percent of vacation homes purchased in 2007 were detached single-family homes, 29 percent condos, 7 percent townhouses and 5 percent other. In 2006, single family homes accounted for 67 percent of vacation-home sales, while condos were 21 percent.
There were no significant changes in investment housing types. Sixty-one percent of investment homes purchased in 2007 were detached single-family homes, 20 percent condos, 11 percent townhouses and 8 percent other. Twenty-eight percent of vacation-home buyers paid cash for their property, as did 35 percent of investment buyers.
Sixty-five percent of vacation-home buyers and 71 percent of investment-home buyers purchased existing homes, while the remainder purchased new homes.
The typical vacation-home buyer in 2007 was 46 years old, had a median household income of $99,100, and purchased a property that was a median of 287 miles from their primary residence.
In listing the reasons for purchasing a vacation home, 84 percent of buyers wanted to use the home for vacation or as a family retreat; 30 percent to use as a primary residence in the future; 26 percent to diversify investments; 25 percent to rent to others; 16 percent for the tax benefits; 14 percent for use by a family member, friend or relative; and 6 percent because they had extra money to spend.
Last year, 19 percent of vacation homes were purchased in the Northeast, 16 percent in the Midwest, 41 percent in the South and 24 percent in the West. In terms of location, 30 percent of vacation homes were purchased in rural areas, 20 percent in resorts, 20 percent in a suburb and 14 percent in an urban area or central city.
Eight in 10 second-home buyers consider it a good time to invest in real estate, compared with 59 percent of primary residence buyers. Forty-four percent of vacation-home buyers and 57 percent of investment buyers said they were likely to purchase another property within two years.
If you have a real estate question or would like to express an opinion about real estate activity at the lake, log on to www.AsTheLakeChurns.com