Buy a Luxury waterfront home at the Lake of the Ozarks

RE/Max Lake of the Ozarks recently held a real estate Symposium that featured pricing data from John Garrett.  The big surprise was how well the real estate market was doing, and that all all sectors saw price increase last year.  The second home market is somewhat immune to the current subprime fiasco, and as it was pointed out in our presentation, real estate is a local event, not a national trend.

Lawrence Yun, NAR chief economist, said the findings suggest different cycles for each of the sectors over the past two years.  “Investment-home sales declined sharply in 2006 as speculators disappeared, leaving the market to serious buyers, with the pattern continuing in 2007,” he said.  “Vacation-home sales rose to a new record in 2006 because there was a pent-up demand from buyers who couldn’t find a property as a result of tight supplies in preceding years.”  The great thing about the Lake of the Ozarks market is that we had very little participation from investors and speculators looking to ‘flip” property, and remained a retirement and second home market the last 5 years.  Not surprisingly, we are seeing a strong market that is weathering the current talk of a real estate “bubble”.

Luxury home sales of homes over $1,000,000 have increased from only 5 sales in 2003 to over 42 sales in 2007.  That is an increase of over 740% in that period, or an average of 148% per year!

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