Branson/Tri-Lakes News: Real estate market perplexes Realtors

Residential quandary

In the residential market for the first six months of the year, Taney County has the same number of total residential closings as last year. Residential home closings were down 11 units, while condominium closings were up by the same amount.

Specifically, the number of closings for homes less than $150,000 was down 20 percent from last year, while closings for homes in the $150,000 to $500,000 price range increased more than 19 percent compared to last year.

Researchers Steve Critchfield and Bob Huels, partners in Commercial One Brokers, have not determined a reason for the fewer closings in the lower price range. Considering the need for affordable housing in Branson, Critchfield said there may not be enough housing available in the less than $150,000 market.

“I don’t think (Realtors) have enough product, but we’re doing more work to find that out,” he said.

The backlash from mortgage defaults due to more unconventional lending practices such as reverse mortgages and interest-only mortgages to homeowners in lower income brackets could be another reason, according to Sandy Bruns, senior executive vice president of First Community Bank of Branson. While Bruns said that First Community Bank has “not seen much of a change in (residential) sales this year from last year,” real estate trends are affecting the mortgage market.

“We’re going to see a more conservative approach to lending,” Bruns said.

She added that the availability of more middle management and year-round jobs with higher salaries being offered in Branson also could contribute to more home sales in the higher price ranges.

Critchfield added, “The Midwest is (doing) better than the coast sides. They don’t have anybody to buy their homes.”

Commercial occupancies

Occupancy rates for Branson retail centers were mixed based on location.

During the first six months of the year, occupancy was down 2 percent for retail centers located on West Highway 76 and down 3.9 percent for retail centers located off of West Highway 76. However, occupancy rates for the outlet malls were up 1.4 percent and the Branson Landing was at 100 percent occupancy, up 3.5 percent compared to 2006. According to Huels, marketing and product offerings are reflected in the occupancy.

“We think it depends on what you are selling today. It is a changing demographic,” Huels said. “(If you have) the same stuff that was available 10 years ago still hanging in the windows, that’s not a Realtor issue. That’s a retailer issue.”

Hotel sales

The report also showed that Branson’s hospitality market remains strong with an active hotel sales market.

Five properties were reported sold during the first half of 2006 compared to eight properties during the same months in 2007.

“The hotels are doing much better than over previous years,” Huels said. “The future we see are those higher demographics. We’re talking to people who are interested in building hotels, not motels.”