Table Rock Lake Condo Inventory Still High (and Growing)

As I’ve posted before, the Table Rock Lake condo market is currently oversupplied and the fundamentals are not improving with the announcement of new units ready to hit the market in the coming months of early 2010. I read yesterday in the Springfield business journal that Point 7 (across the Kimberling bridge on Point 7 road), which is half sold out of their first 20 unit building, has started on another 24 unit building to be finished in the new year. Closer to Branson on Indian Point, Treehouse Condos are nearing completion on their newest building, a 30 unit structure billed as being very energy efficient. The units will have a spectacular view at Treehouse, but will anyone buy them?

While one would think this supply would work in tandem with the lack of demand to pull prices down significantly, that has not necessarily been true heretofore during this time of economic difficulty. I don’t know if it is because of financially strong builders or the unwillingness of sellers to take a loss, but something will have to give sooner or later.

Especially when compared to harder hit sun belt markets like South Florida or Phoenix, the deals really aren’t all that great yet. Resets of 20% or so in this climate are not exactly steals, and I haven’t heard of many transactions that would change my opinion. In fact, the churn in the Table Rock Lake real estate market in general, and in the Table Rock Lake condo market more specifically has been meager. Just not that much inventory is selling. Maybe 2010 will bring change, or provide a better entry point for those who’ve always wanted a lake place but had been priced out of the market.

What to Know Before Buying a Condo

Before you pull the trigger on a condo you think is a great buy, there are a few things you need to consider. Among these is a condo resale certificate. This document is issued by the homeowners association which states their current financial condition, bank balance, planned projects (if applicable), and other information you need to be aware of before you obligate yourself to paying a pro rata share of these costs.

If the condo is in a newer development still controlled by the developer, you need to make sure the condo development is “warrantable”, which means that the development meets certain criteria as deemed by most banks that would make loans or refinance loans in the development. These criteria include what percentage of planned units are completed, if planned amenities are completed, what percentage of completed units are sold, whether or not there is a nightly rental program run by the developer, and other information the banks and their risk managers deem pertinent to making loans that will have sufficient collateral in the event of default.

In conclusion, make sure of what you are buying before pulling the trigger on your dream condo. Give me a call at 417.337.1627 with any questions!

More condo developments in trouble?

As I was trolling the internet for info on a certain condo development, I happen upon the quarterly report of a Springfield based regional bank. Since I had used keywords that had nothing to do with the bank in my google search, curiosity got the best of me and I had to figure out why it came up in the results. Google was spot on, as deep in the document it was noted that at least one condo development in the area who’s $9.2 loan is held by this specific bank is indeed in risk of being foreclosed upon. Using what I know about that bank and what condos are currently being built around the Tri Lakes area, there’s a very good chance that there could be some price-reduced inventory on Table Rock Lake condos in the near future (especially on Indian Point). Just a heads up for those of you who would like to snag a lakefront condo on the cheap. Let me know if you would like more info on this topic. 417.337.1627

Firesale Lot at Emerald Point

emerald pt pic

Heard through the grapvine yesterday that a lakeview lot at Emerald Point sold at a huge discount.  Don’t have all the details yet, but I believe it sold for around $30,000.  That represents a huge discount to what the lots sold for during pre-construction only a few years ago.  I’ll post more information when I get the full story.