Lake Living at the Ozarks
Missouri's Market Moves Swimmingly
With a rocky real estate market nationwide, the Lake has managed to stay well above the water.
BY
Brooke Pearl
PHOTOGRAPHY
Courtesy of Porto Cima

Sometimes you can’t believe everything you see or hear. In fact, information about the 2007 real estate market isn’t based on individual, local markets, but rather on national data (mainly made up of problem areas that include Florida, California, Michigan and Las Vegas).

When it comes to the Lake, the present and future outlook, based on local statistics, are for the most part positive. “Real estate at the Lake of the Ozarks is and has been a good investment,” says Frank Christensen, CEO of Re/Max at Lake of the Ozarks. “In spite of what we hear about falling values, real estate at the Lake of the Ozarks continued to appreciate through 2007.”

For starters, Camden County is projected to grow by 6.4 percent by 2012, faster than the state’s average, and in general, the Lake  continues to have an increase in job growth, with steadily increasing wages. At the same time, people are receiving wage and salary disbursement, and corporate profits are near a record high. Business spending is rising and exports are growing, but consumer spending has decreased because of negative news reports. If you’ve put real estate plans on hold, take some time to check out these facts not seen on TV.

Missouri, somewhat affected by the slow real estate market, has one of the most diversified economies in the nation, with the 46th lowest total tax per capita (according to the U.S. Census Bureau) and a consistent low cost of living index, says Greg Steinhoff, Missouri economic development director. But the reality of the Lake’s local real estate market is in even better standings, with its lower-than-average foreclosure rates in 2007. Permanent and second-home residents are seeing millions of dollars going toward new retail and housing developments, along with new infrastructure to make travel to and from the Lake more efficient.

The infrastructure on Highway 5 includes the Niangua Bridge through Camdenton — an estimated $45 million investment — and will continue south to the Laclede county line — an estimated cost of $39.5 million. The U.S. 54 Expressway has a development cost estimated at $122.4 million. It will run north of Grand Glaize Bridge (2008 start) and south of Grand Glaize Bridge (starting early 2009). Horseshoe Bend Parkway will open up 1,100-plus acres for development with its new two-mile, four-lane limited-access divided roadway. Retail services are increasing as well, including the Shops of Vista Lontana, located off Business 54 and Horseshoe Bend Parkway and offering restaurants, retail, banking, medical facilities, professional offices and more. Prewitts Point and Palisades Commons are other retail/commercial  centers that will add to the Lake’s appeal.

Commercially, residents and visitors are seeing a change from a mom-and-pop  market to corporate-owned real estate. The Shoppes at Horseshoe Bend is a 750,000-square-foot, open-air shopping center on a 100-acre site on the north side of Horseshoe Bend Parkway (second quarter 2008 start date), while the 15-story Chateau at the Lake is due to open in spring 2010 and will include 320 rooms, spas and more than 100,000 square feet of meeting space. It also will feature a 30-acre waterfront location and create hundreds of jobs with annual revenue estimated to be more than $700 million. The Resort & Yacht Club at Toad Cove will feature luxury suites, spas, gourmet dining, shopping and late-night entertainment, while the Lodge of Four Seasons has planned a condominium hotel with 146 units — two examples among numerous other development plans and those already up and running.

The condo market also is strong, increasing prices by 10 percent last year. “In 2007, nearly 30 percent of total real estate sales at the Lake were from condos, villas and townhomes,” says Jeff Krantz, co-owner of Re/Max at the Lake. The condominium market is only going to get better, with 5,815 proposed units, including Avila, Chateau Glaize, Majestic Point Condos and Nantucket Bay, among many others, being built in the next several years, for an investment of $1.1 billion in the Lake area with condos alone.

Affordable homes at the Lake cost up to $300,000, with mid-level homes ranging from $300,000 to $999,000, and high-end luxury homes at $1 million and up. “More than 70 percent of second homeowners in Missouri have their second home at the Lake,” Jeff says. Offshore residential homes accounted for about 19 percent of total sales in 2007, while mid-level homes, the core group at the Lake, represented 60 percent of total residential home sales. Luxury homes made up 18 percent of all residential home sales last year, with an average sale price of approximately $1.7 million. Homebuyers will find more living options with coming developments that include Le Reve Estates, Nichols Point, Palisades Highlands, The Villages, Porto Cima and more.

The constant reminder that the housing and real estate markets are in a whirlwind is an unsupported craze in this region. Next time you hear or read anything about it, remember the facts — the Lake’s in great shape. “Based upon the data we have, this is perhaps one of the best times to buy real estate at the Lake of the Ozarks,” Frank concludes. “We have a good inventory, we have a great variety of safe mortgage products, and we have motivated sellers.”