May sales stats have bolstered the year to date stats for the first five months of 2011. Overall lakefront home average sales price has increased 4% while the number of homes sold increased by 9%. Average price per square foot remained the same indicating that at least for now, prices are holding steady.
The largest growth in a specific segment that I am seeing is the luxury home market of Porto Cima and The Villages at Shawnee Bend. The number of lakefront homes sold in these communities has more than tripled over the same time frame last year, average sales price has increased 26% and the price per square foot has risen by 15%. The average days on the market has been reduced by about two and a half months. It will take monitoring over the next few months to determine if this is an anomaly or a true return for this section of the market. I personally believe we are seeing a return in consumer confidence.
The number of Horseshoe Bend (non Four Seasons) lakefront homes sold is down by one, the average sales price is up 5 ½ % and the price per square foot is down 12% so in this segment, the buyers are still spending and they are getting more house for their money.
Four Seasons lakefront home sales have increased by 29%, the days on the market decreased by two months and the average sales price has fallen by 16%. Upon closer review, this appears to be more due to smaller homes selling than to a decline in value.
Lakefront condo sales are up slightly in terms of units sold however the sales prices and price per square foot are down about 5% (which is still a 3% improvement over the first four months YTD combined sales).
In looking at a closer comparison of waterfront two bedroom units on Horseshoe Bend, the number of units sold have more than doubled over last year, the days on the market have decreased by over a month, average sales price has remained the same but average unit size is larger so again, in this segment buyers are getting more for their dollar.
Camden County reports via their website they issued 8 new residential building permits the first four months of the year. It did not indicate what that figure had been in 2010 for comparison. I believe the lack of permits goes hand in hand with the lack of vacant land sales the lake has been experiencing the past couple of years.
Most of the information I have compiled is based on data from the Board of Realtors MLS System from January 1 thru May 31 of both 2010 and 2011. This is intended as a general synopsis of the lake’s real estate market. If you would like detailed information on any specific market at the lake, please let me know.
For anyone interested in seeing what is available in the foreclosure market, please call or email, I’ll be happy to provide you with listing data on bank owned properties.
Karen and I are hosting the July 14th Business Journal Social at JB Hooks from 4 p.m. to 7 p.m. Stop by to visit and enjoy some great food and as always, great service and atmosphere.
Any questions? Contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Thursday, September 29, 2011
June Real Estate Update
Are We There Yet?
The most asked question these days is “Has the market hit bottom yet?” I’d love to reply with a resounding yes but the truth is, I’m just not sure. I have seen indicators over the past two years that seemed to point to that only to see the market drop even further.
The National Association of REALTORS recently released a report showing that total existing homes sales, which include single family homes and condos, rose 8.3% in the first quarter of this year.
Locally our home and condo sales are almost exactly the same as last year in the time frame of January 1st to April 30th based on information from the Bagnell Dam Association’s Multiple Listing Service. In 2011, one more home sold than in 2010 and 3 less condos sold this year over last. It is promising that we are starting to stabilize on the number of home and condo sales. However we have seen a continued decrease in average sales prices. The average 2011 Homes sales price is down 8.9% compared to the first four months of 2010. The average 2011 Condo sales price has seen a decrease of 8.2%.
The Housing Finance Reform Act of 2011 was introduced in May and seeks to maintain government role in mortgages. The plan is to dissolve Fannie Mae and Freddie Mac and introduce at least five private firms that would be in charge of funding and securitizing conventional mortgages. The resulting bonds would have a federal guarantee for which these firms would be charged a fee. If passed it will make it more expensive for buyer’s to buy a home, restricting the availability of mortgages. Higher down payments will be required and the closing fees almost certainly will increase.
Based on this information, the current low interest rates and the low prices, even if we haven’t reached absolute bottom, I not only believe that now is a good time to purchase lake property, I encourage you to move forward quickly. Waiting for a lower price could result in you paying higher interest rates, higher down payment and larger closing costs. Or it might even affect your ability to qualify for a mortgage. Don’t wait! If you’d like a copy of the Outline of the Housing Finance Reform Act, call or email me.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
The most asked question these days is “Has the market hit bottom yet?” I’d love to reply with a resounding yes but the truth is, I’m just not sure. I have seen indicators over the past two years that seemed to point to that only to see the market drop even further.
The National Association of REALTORS recently released a report showing that total existing homes sales, which include single family homes and condos, rose 8.3% in the first quarter of this year.
Locally our home and condo sales are almost exactly the same as last year in the time frame of January 1st to April 30th based on information from the Bagnell Dam Association’s Multiple Listing Service. In 2011, one more home sold than in 2010 and 3 less condos sold this year over last. It is promising that we are starting to stabilize on the number of home and condo sales. However we have seen a continued decrease in average sales prices. The average 2011 Homes sales price is down 8.9% compared to the first four months of 2010. The average 2011 Condo sales price has seen a decrease of 8.2%.
The Housing Finance Reform Act of 2011 was introduced in May and seeks to maintain government role in mortgages. The plan is to dissolve Fannie Mae and Freddie Mac and introduce at least five private firms that would be in charge of funding and securitizing conventional mortgages. The resulting bonds would have a federal guarantee for which these firms would be charged a fee. If passed it will make it more expensive for buyer’s to buy a home, restricting the availability of mortgages. Higher down payments will be required and the closing fees almost certainly will increase.
Based on this information, the current low interest rates and the low prices, even if we haven’t reached absolute bottom, I not only believe that now is a good time to purchase lake property, I encourage you to move forward quickly. Waiting for a lower price could result in you paying higher interest rates, higher down payment and larger closing costs. Or it might even affect your ability to qualify for a mortgage. Don’t wait! If you’d like a copy of the Outline of the Housing Finance Reform Act, call or email me.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Wednesday, May 11, 2011
Foreclosure Tax Ramifications
Be aware of a possible tax liability in a short sale or foreclosure. In regards to a short sale or foreclosure, usually under the tax laws, if your debt ir canceled or forgiven, that is taxable income to you. Basically, the difference between the amount of the loan the price the property brings.
If you lose your house by foreclosure or short sale, to add insult to injury, you may have to pay tax on this "income". There may be some relief if the debt was on your principal residence. Under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million.
If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.
If your canceled debt was on a refinanced loan, the law is murky. If you used the refinance proceeds to substantially improve your house, the there is no tax to pay. But if you used those proceeds for other purposes the cancellation creates a taxable event for you.
If you are facing possible foreclosure or short sale, be sure to contact a good tax accountant and or attorney to discover what your options and possibilities are.
The IRS has an excellent, free publication on this topic, called "Cancelled Debt, Foreclosure, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website: http://irs.gov/pub/irs-pdf/p4681.pdf or by calling 800.829.3676 or 800.Tax.Form
If you lose your house by foreclosure or short sale, to add insult to injury, you may have to pay tax on this "income". There may be some relief if the debt was on your principal residence. Under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million.
If the debt was on a second home or an investment property, then you are out of luck; the amount that was forgiven (or canceled) is taxable income to you.
If your canceled debt was on a refinanced loan, the law is murky. If you used the refinance proceeds to substantially improve your house, the there is no tax to pay. But if you used those proceeds for other purposes the cancellation creates a taxable event for you.
If you are facing possible foreclosure or short sale, be sure to contact a good tax accountant and or attorney to discover what your options and possibilities are.
The IRS has an excellent, free publication on this topic, called "Cancelled Debt, Foreclosure, Repossessions and Abandonments." It is Publication 4681, and will soon be published at the following link on the IRS website: http://irs.gov/pub/irs-pdf/p4681.pdf or by calling 800.829.3676 or 800.Tax.Form
Monday, April 11, 2011
Tax Time And Homeownership
If you are a homeowner, make sure you take advantage of all the credits available to you when you file your taxes this year. Numerous deductions and credits are available for homeowners. These include capital gains and mortgage interest deductions, as well as credits for energy-efficient upgrades.
To get the latest information on energy credits for this year's tax return, visit EnergyStar.gov. You may be able to deduct portions of improvements on everything from windows and doors to water heaters.
Why do homeowners get such special treatment? For starters, the National Association of Realtors reports that "home owners pay 80-90 percent of all U.S. federal income taxes." And the credits and deductions don't just benefit wealthy homeowners.
Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year. (NAR)
NAR President Ron Phipps says that homeownership has many positive impacts. "Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”
Need some tips for this tax season? Take a trip over to houselogic.com, a free source of information from NAR, for the latest tips.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
To get the latest information on energy credits for this year's tax return, visit EnergyStar.gov. You may be able to deduct portions of improvements on everything from windows and doors to water heaters.
Why do homeowners get such special treatment? For starters, the National Association of Realtors reports that "home owners pay 80-90 percent of all U.S. federal income taxes." And the credits and deductions don't just benefit wealthy homeowners.
Ninety-one percent of home owners who claim the mortgage interest deduction earn less than $200,000 a year, and the ability to deduct the interest paid on a mortgage can mean significant savings at tax time. For example, a family who bought a home in 2010 with a $200,000, 30-year, fixed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they file this year. (NAR)
NAR President Ron Phipps says that homeownership has many positive impacts. "Recent proposals to reduce or eliminate the mortgage interest deduction and remove government support of the housing finance market could have disastrous consequences for the economy, not to mention making it harder or nearly impossible for millions of families to own their own homes. We believe America must continue to invest in home ownership, for the future of our families and our nation.”
Need some tips for this tax season? Take a trip over to houselogic.com, a free source of information from NAR, for the latest tips.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Thursday, March 3, 2011
The Light at the End of the Tunnel
As we progress over the next few months into this Spring market we will be better able to review sales statistics to see if we truly are starting to rebound however, the research I have done based on the first six weeks of this year are promising. Based on data from our Bagnell Dam Association of REALTORS Multiple Listing System comparing the time frames of January 1 thru February 15 of each year from 2002 to the present, I am seeing an upward trend in the number of homes sold, the total sales volume and an increase in the upper range of sales prices.
This chart lays out the numbers of homes sold, average sales price, range of sales prices and the total volume of sales dollars.
The next 30 days will be the strongest indicator as to whether we are starting to get back on track (or if perhaps we should get off the track in case this light I’m seeing is another train). I personally have had more business in the first six weeks of 2011 than I had the last six months of 2010.
On another positive note in my life, Karen and I were fortunate to be able to sell our personal home in The Villages at Shawnee Bend during this tough market. We moved in February to another property we own on Horseshoe Bend. We had just sold another home we owned in Osage Beach the end of last year so we are breathing a lot easier. As we’ve done in the past, we’d like to purchase another lot and build again but plan to spend at least the next year concentrating on taking our real estate business to the next level, making time for family and friends and hopefully for some personal enjoyment and relaxation.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Tuesday, November 16, 2010
Recent Events and Future Forecast
Kudos to Matt Duenke and the Duenke family. They have enlisted the Zanola Company firm to conduct in depth demographic and market research and economic forecast research for the lake area. This will enable them to better gauge the future development at the lake. This will assist them in determining the best use of the Duenke Family Properties around the new expressway. They have generously set up meetings open to area business people and general public to share the information. The Duenke Family is carrying the costs of these studies and presentations.
I am excited to announce that The Duenke Family has chosen C. Michael Elliott & Associates to represent them in the marketing and sales of The Estates at Palisades Highlands. We are looking forward to a long term relationship coordinating the sale of their properties.
The response to my article last month was huge. I want to thank everyone that took the time to share their thoughts with me. I have seen an increase in real estate activity since the election. I feel that regardless of the outcome, people were waiting to see what happened before making any decision to move forward with purchasing property.
As Colin Powell said in a recent interview; "American people still believe in this country. What they're waiting for is for the political leaders in Washington to get on with the solution to problems and not continue to argue with each other. The next year is going to be important."
It has almost been a year since Karen and I started C. Michael Elliott & Associates. It has certainly been an interesting year. We have seen our local market finally stabilize. There has been an increase in home sales and we are now seeing movement in the luxury home market. There have also been several commercial transactions where the commercial market was almost non-existent the previous two years. In all, indicators point toward a much better 2011 both locally and nationwide.
We appreciate all of our family, friends, clients and the Realtor community who have helped us to have a successful year in the toughest market we’ve experienced in our combined 55 years in the lake real estate business. Best wishes to everyone for a Merry Christmas and Happy New Year!
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
I am excited to announce that The Duenke Family has chosen C. Michael Elliott & Associates to represent them in the marketing and sales of The Estates at Palisades Highlands. We are looking forward to a long term relationship coordinating the sale of their properties.
The response to my article last month was huge. I want to thank everyone that took the time to share their thoughts with me. I have seen an increase in real estate activity since the election. I feel that regardless of the outcome, people were waiting to see what happened before making any decision to move forward with purchasing property.
As Colin Powell said in a recent interview; "American people still believe in this country. What they're waiting for is for the political leaders in Washington to get on with the solution to problems and not continue to argue with each other. The next year is going to be important."
It has almost been a year since Karen and I started C. Michael Elliott & Associates. It has certainly been an interesting year. We have seen our local market finally stabilize. There has been an increase in home sales and we are now seeing movement in the luxury home market. There have also been several commercial transactions where the commercial market was almost non-existent the previous two years. In all, indicators point toward a much better 2011 both locally and nationwide.
We appreciate all of our family, friends, clients and the Realtor community who have helped us to have a successful year in the toughest market we’ve experienced in our combined 55 years in the lake real estate business. Best wishes to everyone for a Merry Christmas and Happy New Year!
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Hope Pray Vote
As I write this, we are a week away from the November mid term elections. I hope and pray that this election will regain some balance to our country’s economic situation and I will be voting my support for a return to conservative values and agendas. I feel we will begin to see a return in consumer confidence as power shifts from the current idea that we can spend our way out of debt and cover those debts by increased taxes on a society that has already been taxed to death.
The lake area is positioned for its next growth phase. The opening of the latest phase of the expressway has met with some controversy but I feel will contribute to a renewed commercial market which has been almost non existent in the past two years. Combined with other developments; I feel we are poised for growth that far exceeds anything we have experienced in the lake’s history.
Dierberg’s plan to locate in the former High Point Center also includes a 36,000 square foot Best Buy along with another big box store that has not yet been named. John Q. Hammons’ Chateau at the Lake is on schedule to break ground by late winter. Plans are still in the works for the Horseshoe Bend Parkway and Prewitt’s development at the corner of the Parkway and Expressway includes several big box stores.
All of this progress will mean more jobs, more revenue to our local businesses as well as local governments. Housing demands will increase along with both residential and commercial real estate values.
I have worked with many clients over the past year that are capable of purchasing but have been concerned about what is happening in our country and hesitant to move forward. Our country was built on private land ownership and I truly feel that with historically low interest rates and property values as well as what is going on in local development, those who purchase now will see a great long term gain on their investment. I feel this is true of all property types; commercial, residential and income producing properties. Where and what you purchase is still a very important factor and I urge you to enlist the support of a real estate professional in making these decisions.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
The lake area is positioned for its next growth phase. The opening of the latest phase of the expressway has met with some controversy but I feel will contribute to a renewed commercial market which has been almost non existent in the past two years. Combined with other developments; I feel we are poised for growth that far exceeds anything we have experienced in the lake’s history.
Dierberg’s plan to locate in the former High Point Center also includes a 36,000 square foot Best Buy along with another big box store that has not yet been named. John Q. Hammons’ Chateau at the Lake is on schedule to break ground by late winter. Plans are still in the works for the Horseshoe Bend Parkway and Prewitt’s development at the corner of the Parkway and Expressway includes several big box stores.
All of this progress will mean more jobs, more revenue to our local businesses as well as local governments. Housing demands will increase along with both residential and commercial real estate values.
I have worked with many clients over the past year that are capable of purchasing but have been concerned about what is happening in our country and hesitant to move forward. Our country was built on private land ownership and I truly feel that with historically low interest rates and property values as well as what is going on in local development, those who purchase now will see a great long term gain on their investment. I feel this is true of all property types; commercial, residential and income producing properties. Where and what you purchase is still a very important factor and I urge you to enlist the support of a real estate professional in making these decisions.
If you would like a detailed sales report on your specific property type or neighborhood, or would like information on the best buys at the lake, contact C. Michael Elliott & Associates at 866.Your.Lake or cme@yourlake.com View thousands of lake area listings at www.YourLake.com. You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
Subscribe to:
Posts (Atom)