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Growth, value prove to be silver lining in lake area real estate
LAKE OF THE OZARKS, Mo. -- Terms like amortization, list-to-sell ratio, and encumbrance can leave the head of any homeowner swimming.
After reading any national news coverage of the real estate industry, those of us who barely know the difference between Freddie Mac and a Big Mac can easily walk away thinking buying or selling a home would be a terrible idea under current conditions, but real estate agents at Lake of the Ozarks want to send a different message to people considering a move.
"Buyers are coming into the marketplace assuming that the market is declining, but property values are still on the rise here," Bagnell Dam Association of REALTORS¨ Secretary Karie Jacobs said.
While there are fewer real estate deals happening at the Lake of the Ozarks this year compared to years past, the average selling price of real estate continues to increase steadily. The selling average for residential property jumped from $271,000 to $283,000 in a single year. Commercial real estate saw the biggest gain in average selling price, climbing from an average of $545,000 to an average of $628,000.
"It shows when you have an increase in the average price--that's the key," Bagnell Dam Association of REALTORS¨ President Mary Albers said.
Realtors credit the upswing to an overall increase in commercial development, in part because of transportation and infrastructure improvements. Construction of the Highway 54 Expressway in Osage Beach is underway, as is the construction of the four lane Highway 5 bypass in Camdenton (the largest grading project in the history of MODOT). Both projects are expected to greatly improve the ability for people to travel around the lake.
"We have so many positive things in our area," Conda Davidson, Bagnell Dam Association of REALTORS¨ Board Member said, "we are getting more infrastructure in terms of roads--state governments don't do that if they don't anticipate growth."
The anticipated growth is likely an extension of the growth that the Lake of the Ozarks real estate market enjoyed, especially over the past five years. Ryan Gattermeir, Vice President of the Bagnell Dam Association of REALTORS¨ says steady growth keeps the Lake of the Ozarks market unique from other real estate markets, and encourages potential buyers to value local trends over national trends.
"Other markets like Florida, California, and Arizona saw huge gains in property value--basically too much too fast; we have seen impressive, yet steady, appreciation for Lake properties," Gattermeir said.
Davidson identified another local advantage that sets the Lake of the Ozarks apart from other real estate markets. Whether property is commercial, residential, or agricultural, property taxes tend to be low at Lake of the Ozarks compared to property taxes in other parts of the country.
"A lot of people come from Chicago and think that their yearly tax rate on a property here is for a single month," Davidson said, "lower property tax rates open your buying power a lot more--you can afford more home."
Buyers and sellers benefit from the lower property tax rates. The average number of days that homes were on the market is relatively the same this year as it has been in years past, even though property values have increased. In 2007, the average days-on-market for residential property was 119 days. In the first six months of 2008, the average is 121 days.
While second home real estate markets in other parts of the country attract headlines with instability and devaluing properties, the Lake of the Ozarks real estate market holds relatively steady, and property values continue to climb.
"Our product has been undervalued compared to other second home resort markets, but there has not been a devaluation in ten years," Jacobs said.
The Lake of the Ozarks also boasts a high average list-to-sell ratio, which is the price that a property sells for compared to its listed price. The Lake's list-to-sell ratio is 95%, while other comparable markets have list-to-sell ratios between 60% and 70%.
Subscribe To Lake AlertsAfter reading any national news coverage of the real estate industry, those of us who barely know the difference between Freddie Mac and a Big Mac can easily walk away thinking buying or selling a home would be a terrible idea under current conditions, but real estate agents at Lake of the Ozarks want to send a different message to people considering a move.
"Buyers are coming into the marketplace assuming that the market is declining, but property values are still on the rise here," Bagnell Dam Association of REALTORS¨ Secretary Karie Jacobs said.
While there are fewer real estate deals happening at the Lake of the Ozarks this year compared to years past, the average selling price of real estate continues to increase steadily. The selling average for residential property jumped from $271,000 to $283,000 in a single year. Commercial real estate saw the biggest gain in average selling price, climbing from an average of $545,000 to an average of $628,000.
"It shows when you have an increase in the average price--that's the key," Bagnell Dam Association of REALTORS¨ President Mary Albers said.
Realtors credit the upswing to an overall increase in commercial development, in part because of transportation and infrastructure improvements. Construction of the Highway 54 Expressway in Osage Beach is underway, as is the construction of the four lane Highway 5 bypass in Camdenton (the largest grading project in the history of MODOT). Both projects are expected to greatly improve the ability for people to travel around the lake.
"We have so many positive things in our area," Conda Davidson, Bagnell Dam Association of REALTORS¨ Board Member said, "we are getting more infrastructure in terms of roads--state governments don't do that if they don't anticipate growth."
The anticipated growth is likely an extension of the growth that the Lake of the Ozarks real estate market enjoyed, especially over the past five years. Ryan Gattermeir, Vice President of the Bagnell Dam Association of REALTORS¨ says steady growth keeps the Lake of the Ozarks market unique from other real estate markets, and encourages potential buyers to value local trends over national trends.
"Other markets like Florida, California, and Arizona saw huge gains in property value--basically too much too fast; we have seen impressive, yet steady, appreciation for Lake properties," Gattermeir said.
Davidson identified another local advantage that sets the Lake of the Ozarks apart from other real estate markets. Whether property is commercial, residential, or agricultural, property taxes tend to be low at Lake of the Ozarks compared to property taxes in other parts of the country.
"A lot of people come from Chicago and think that their yearly tax rate on a property here is for a single month," Davidson said, "lower property tax rates open your buying power a lot more--you can afford more home."
Buyers and sellers benefit from the lower property tax rates. The average number of days that homes were on the market is relatively the same this year as it has been in years past, even though property values have increased. In 2007, the average days-on-market for residential property was 119 days. In the first six months of 2008, the average is 121 days.
While second home real estate markets in other parts of the country attract headlines with instability and devaluing properties, the Lake of the Ozarks real estate market holds relatively steady, and property values continue to climb.
"Our product has been undervalued compared to other second home resort markets, but there has not been a devaluation in ten years," Jacobs said.
The Lake of the Ozarks also boasts a high average list-to-sell ratio, which is the price that a property sells for compared to its listed price. The Lake's list-to-sell ratio is 95%, while other comparable markets have list-to-sell ratios between 60% and 70%.
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| OPINION: It's time to buy real estate at Lake of the Ozarks |
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highlyinterested wrote on Aug 20, 2008 11:00 PM: