Average home price down 8.6% from June 2009 to June 2010
From the month of June, 2090, the average sale price of homes sold in the Tri-lakes Branson area dropped from $176,000 to $162,000, a drop of 8.6% year over year. Over the same time period, average days on the market increased from 135 days to 152 days, an increase of 12.6%. Average days on the market of about five months in the Tri-lakes area tells an important story about the condition of the market. It’s near the bottom. It is still a buyer’s market. Home prices are comparable to prices of 5-10 years ago.
We all know the numbers have not improved over the last year, but these put the actual conditions in perspective. We have seen fantastic values in the home foreclosure market, including lake front condos well below $100,000, a price barrier that was pretty strong until the last year of steady declines. The double dip recession has affected the Table Rock Lake area as well as most other areas around the country. With the banks continuing to tighten their lending practices, most buyers are investors, creating a floor that prices will not go below.
Investors earning less than 1% on the CD’s, stock market, and savings accounts are moving their money from these poor investments to rental property because they can earn 7-20% on their rental properties. Money goes where returns flow. These lower home prices will continue to pull more investor dollars fueling a rebound in real estate.
