grand lake ok real estate - an in depth analysis of recent five years
DESCRIPTION
We conducted a Grand Lake Area Real Estate Symposium recently for 100 local business, government and Real Estate people. The speakers included the Region Vice President for NAR, the Region Department of Commerce representative, the Oklahoma House of Representative member, and me, Jeff Savage. For that Symposium, I prepared an in-depth study of the local Real Estate market – analyzing the last five years. I would some of my findings with you in the attached presentation. We’ve heard about the National real estate market and what’s going on around the country. That does have some effect on our market as people try to sell homes in California, Arizona, Colorado and around the country to buy property at Grand Lake. We’ve heard the Oklahoma State economy is running strong with 2.9% unemployment, which can influence the decision to buy property at Grand Lake. Real Estate is local, and Oklahomans are buying or selling their homes in the local housing market. NOW, let’s focus on that local market, our four counties in Northeast Oklahoma – Delaware, Ottawa, Craig and MayesTRANSCRIPT
2008 Grand Lake Area Real Estate Symposium
SPONSORS:RE/MAX Grand Lake
Grand River Abstract & Title
Grand Savings Bank
Grand Lake Association
Wells Fargo
The Real Estate Book
Enterprise Builders – Craig Criger
Shelter Insurance – Mark Lee
Helicopter Advantage.com
Real Estate StatisticsJeff Savage
2008 Grand Lake Area Real Estate Symposium
Total dollars spent in that property category.
Real Estate Acronyms, Terminology and Definitions
DOLLAR VOLUME
AVERAGE SOLD PRICE
Total Dollars Spent divided by number of units sold in that property category.
Luxury Home MarketIn this instance, we will simply use the price point representing the upper 5% of the market, or $500,000+
Signs of a Seller’s Market
• Days on Market will be Decreasing
• Inventory is Low
• Comparable Sale Prices are Lower than Active Listing Prices
• Median Sale Prices are Increasing
Signs of a Buyer’s Market
• Days on Market is Increasing
• Inventory is high
• Comparable Sale Prices are Higher than Active Listing Prices
• Median Sale Prices are Decreasing
Source of Information
For the period January 1, 2003 through December 31, 2007
• Based on information from the Northeast Oklahoma Board of Realtors®
All Property Types
2003 2004 2005 2006 2007
$103,651,899
$135,612,678
$180,984,207
$215,821,577$199,346,217
Dollar Volume
All Property Types
2003 2004 2005 2006 2007
$100,244$106,196
$123,286
$136,682 $139,696Average Sold Price
Residential Waterfront
2003 2004 2005 2006 2007
$36,427,659
$46,263,069
$58,573,476
$78,829,160
$69,725,986
Dollar Volume
Residential Waterfront
2003 2004 2005 2006 2007
$203,506$221,354
$251,388
$306,728 $311,277
Average Sold Price
Residential (not Water Front)
2003 2004 2005 2006 2007
$45,656,316
$60,712,809
$78,454,796
$93,507,208$84,763,253
Dollar Volume
Residential (not Water Front)
2003 2004 2005 2006 2007
$73,758$80,096
$88,750
$97,913$94,391
Average Sold Price
Luxury Home Market
2003 2004 2005 2006 2007
$2,020,000
$5,764,500
$9,512,900
$28,120,161$26,832,000
Dollar Volume
Luxury Home Market
2003 2004 2005 2006 2007
$613,750 $632,850
$764,577 $776,123 $741,763
Average Sold Price
Water Front Lots
2003 2004 2005 2006 2007
$2,841,800$2,665,130
$4,334,550 $4,123,000
$5,558,450
Dollar Volume
Water Front Lots
2003 2004 2005 2006 2007
$88,806$78,386
$103,204$108,500
$146,275
Average Sold Price
Condos and Townhomes
2003 2004 2005 2006 2007
$1,383,450$1,990,695
$4,672,950
$6,088,450
$10,082,750
Dollar Volume
Farms and Ranches
2003 2004 2005 2006 2007
$5,677,750
$11,595,487 $11,475,540
$15,467,794
$13,293,100
Dollar Volume
Commercial
2003 2004 2005 2006 2007
$3,686,000$4,615,000
$10,349,300
$8,936,375 $9,434,500
Dollar Volume
Number of Sold Transactions
2003 2004 2005 2006 2007
1,034
1,277
1,4681,579
1,427
Days on the Market
2003 2004 2005 2006 2007
137
145
131 131
121
The Stock MarketGrand Lake Real Estate
vs
Let’s see the future value of this $200,000 in 5 years for those
investments
• Grand Lake Water Front Homes saw an annual increase of 11.7% during the same period
Assumptions
$200,000 is invested in both the Stock Market, and Grand Lake Real Estate.
Using averages for the last 5 years:
• The Dow Jones Industrial Average saw an annual increase of 8.9% per year on average.
• The S&P 500 saw an annual increase of 9.28% during the same period
Grand Lake Water Front Homes vs
Stock Market
WF Homes - 11.7% DOW - 8.9% S&P - 9.2%
$311,917
$287,485$290,434
In Conclusion
• Water Front Homes and Lots bring buyers to Grand Lake, and continue to be the strongest segment of the area market.
• The numbers show a strong local real estate market.
• Real estate is local, and Oklahomans are not buying or selling their homes
in a national housing market.
2008 Grand Lake Area Real Estate Symposium
SPONSORS
RE/MAX Grand Lake
Grand River Abstract & Title
Grand Savings Bank
Grand Lake Association
Wells Fargo
The Real Estate Book
Enterprise Builders – Craig Criger
Shelter Insurance – Mark Lee
Helicopter Advantage .com