Anna Maria Island News
MAY NEWSLETTER 2013
Sales for April 2013 at 44 (SF-23, Con-15, Dup-4 & Lot-2) just beat April 2012 at 43 (SF-24, Con-10, Dup-5 & Lot-4). Sales for April 30, 2013 Y-T-D were 116 (SF-64, Con-38, Dup-6 & Lot-8) compared to April 30, 2012 Y-T-D at 139 (SF-79, Con-42, Dup-9 & Lot-9). Although still down 17% from 2012 sales, 2013 Y-T-D sales are catching up to last year’s banner year of 430 properties sold. Sales for the last 12 months at 408 (SF-230, Con-122, Dup-24 & Lot-32) were up 16% over sales for the previous 12 months at 352 (SF-193, Con-114, Dup-19 & Lot-26). Of sales for the last 12 months the distressed properties (bank owned or short sales) were 41 (SF-19, Con-17, Dup-5 & Lot-0) only 10% of the sales compared to the previous 12 months at 61 (SF-20, Con-33, Dup-5 & Lot-3) or 17% of the sales. Currently there are only 12 (SF-5, Con-5, Dup-2 & Lot-0) or 3% distressed properties in the inventory. Pended properties (properties under contract) continue to grow each month and is currently at 73 (SF-40, Con-20, Dup-10 & Lot-3) up from 67 in April, 61 in March and 51 in February. This continues to bode very well for sales to continue at a record pace. Inventory on the island continues to shrink and is currently at 321 (SF-157, Con-90, Dup-23 & Lot-51) down from 344 in April, 351 in March and 366 in February.
Another one of Frank, Larry & Al’s Great Buys has gone under contract since my last newsletter. The property at 7314 Gulf Drive (La Casa Costiera Unit 7) went under contract April 24th and is due to close May 31st. Currently there are 15 single family homes for sale west of gulf drive and 6 of them are direct gulf front homes and of the 9 homes left only 6 are under $1 Million. West of gulf drive is the best location to maximize rentals and is the location that appreciates the most. There has been a lot of showings and interest in 2916 Avenue E which continues to be the best investment, buy by the numbers, on the island. This property is 4 houses from the gulf and does $65K in annual rentals year after year. For you investors out there you won’t find a better investment property on the island currently for sale. It pays all operating cost and the mortgage with 20% down. The second best buy close to the beach under $1 Million is 109 Cedar Ave at $879,000 (3 houses from the beach) a 4 bedroom/2 bath home that could do $65K-$75K in gross annual income. Third again is 3603 4th Ave listed at $959,000 is 2,376 sq ft, 3 bedroom/3 bath townhouse style home with pool and roof top deck with views of the gulf, inter-coastal and skyway bridge. Check out the virtual tours on these and other properties.
To summarize the island market, although 2013 started off slower than 2012, we are starting to catch up and build steam for another banner year of sales. The year with the highest number of sales in the last 30 years was 2005 with 438 properties sold, then 2004 with 434 properties sold and then, last year, 2012 with 430 properties sold. To put that in perspective, the average number of properties sold in a year is 250. You can see that although were a little behind 2012 sales we’re still having another great year. At the same time the island inventory is at the lowest level since 2005 and sales continue to outpace listings each month which continues to drive the inventory lower. Distressed properties continue to remain very low and are almost non-existent and I expect this to continue since prices are rising. I’ve seen a bump up in sales prices since last month and that trend will continue as long as sales remain high and inventory low. Single family 2013 Y-T-D average and median sale prices were $643,154 & $535,000 compared to 2012 Y-T-D at $580,047 & $515,000 up 11% & 4% in 2013. Average and median condo sales for 2013 Y-T-D were $317,543 & $315,500 compared to 2012 Y-T-D at $275,752 & $285,000 up 15% & 11% in 2013. In April there were 44 properties sold on the island and that is 88 sides (buyer’s side and listing side). Island Real Estate had 27 sides of the sales in April or 31% of the sales, well above out average share of 25%. We were involved in 24 of the 44 properties sold or 55% of the sales for April. Island Real Estate listed 11 properties in April and put 19 properties under contract. Island Real Estate currently has about 20% of the listings on the island and I have 55% of the IRE listings. As you can see the market is good and we are getting more than our fair share of the market.
For detailed charts see the entire newsletter on my web site; www.Alangalletto.com
Ask Alan Galletto-THE Realtor for real estate on Anna Maria Island, FL. 941.232.2216
April NEWSLETTER 2013
Sales for April 2013 at 29 (SF-21, Con-3, Dup-2 & Lot-3) were only 29% of April 2012 at 41 (SF-26, Con-13, Dup-0 & Lot-2). Sales for the first Quarter of 2013 were 72 (SF-41, Con-23, Dup-2 & Lot-6) down 25% from the first Quarter of 2012 at 96 (SF-55, Con-32, Dup-4 & Lot-5). The first quarter of 2013 was a much slower start then 2012. Sales for the last 12 months at 407 (SF-231, Con-117, Dup-25 & Lot-34) were up 14% over the previous 12 months at 358 (SF-197, Con-123, Dup-15 & Lot-23). Of the sales for the last 12 months, the distressed properties were 10% or 41 (SF-19, Con-19, Dup-3 & Lot-0) compared to the distressed properties for the previous 12 months at 17% or 61 (SF-21, Con-32, Dup-5 & Lot-3). Currently there are only 14 distressed properties in the inventory or 4% of the inventory. Five are single families with 2 being bank owned and 3 being short sales; 6 are condos with 2 being bank owned and 4 being short sales; 3 are duplex’s with 2 being bank owned and 1 a short sale. Pended properties (properties under contract) continue to be strong at 67 (SF-35, Con-18, Dup-11 & Lot-3) up from last month’s 61 and the previous months 51. Inventory on the island continues to shrink at 344 (SF-160, Con-103, Dup-32 & Lot-49) down from 351 last month and 366 the previous month.
Two of the properties in last month’s Frank, Larry and Al’s Great Buys have gone under contract. The property at 115 36th Street (west of gulf drive) just went under contract and is due to close in May. The property at 313 64th St (a townhouse condo with private pool) also went under contract and just closed for $515,000. Currently there are only 8 properties for sale west of Gulf Drive under $1 million and we have seen a spike up in the sale prices of these properties. West of Gulf drive is the prime location for renting. A pool home with at least 3 bedrooms will do between $60K and $100K depending on the location, amenities and number of bedrooms. Again the best investment buy on the island is 2916 Avenue E (4 houses from the beach) listed at $629,000 and does gross annual rental of $67,000. Number two again this month is 109 Cedar Ave (3 houses from the beach) which could do $65K-$75K in rental income. The third investment buy is 3603 4th Ave listed at $959,000 a great 3bedroom 3 bath townhouse style home with pool and roof top deck with views of the Gulf and inter-coastal waterway. Check out the virtual tours on these 3 properties.
To summarize the Island market the year has started off about 25% below the first quarter of 2012 and 2012 was the third highest year of sales in the last 30 years. Based on the activity we are seeing and the strong enthusiasm in the market place I expect that gap to narrow as we continue through the year. For example in March there were 29 properties sold on the island or 58 sides (buyer side and seller’s side). In March, Island Real Estate sold 19 properties and 12 of them were on the island and on 2 of them we had both sides so we sold 14 sides in March. In March we sold 24% of the properties sold on the island, just about our normal share of the market. Also in March Island Real Estate put 20 properties under contract, 14 of them on the island. You can see the sales are still coming strong.
In the broader regional market while the national market is slightly down, the median list price of homes for sale is up 3.73% in Sarasota-Bradenton and 11.17% in the Punta Gorda-Charlotte County markets from a year ago, according to the National Association of Realtors. In Sarasota, the median home price is $250,000. The national median is $187,900, down 0.05% from a year ago. Meanwhile, inventories of homes in the Sarasota-Bradenton market, listed for sale by Realtors continue to shrink. Sarasota-Bradenton’s 6,640 listings represent a 20.25% year-over-year decline but is 1.44% more than the previous month. Days-on- market, the time it takes listings to sell is down 22% in both local markets and 9% nationally. That can be borne out by many mainland Real Estate customers I’ve talk to have been in multiple offer situations. In short the Island and regional markets are continuing to heat up.
Call me, Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate. www.Alangalletto.com
February NEWSLETTER 2013
Sales for January 2013 got off to a slower start at 18 ( SF-8, Con-7, Dup-0 & Lot-3) compared to January 2012 at 28 ( SF-13, Con-11, Dup-2 & Lot-2) . Sales for the last 12 months were 420 ( SF-239, Con-122, Dup-25 & Lot-34) up 19% over the previous 12 months at 352 ( SF-179, Con-131, Dup-17 & Lot-25). Of the sales for the last 12 months distressed properties were only 11% of the sales at 46 ( SF-23, Con-19, Dup-4 & Lot-0) compared to the previous 12 months where 17% or 60 ( SF-19, Con-32, Dup-6 & Lot-3) were distressed. Currently there are only 9 distressed properties or 2% of the inventory of 366 (SF-177, Con-108, Dup-35 & Lot-46). Pended properties (properties under contract) continue to be strong at 51 (SF-28, Con-13, Dup-9 & Lot-1) up from 38 last month and well above the average. Inventory on the island has ticked up a little this month to 366 ( SF-177, Con-108, Dup-35 & Lot-46) but for the last six months has been in the mid to low 300’s.
Another one of Frank, Larry & Al’s Great Buy’s went under contract since the last newsletter. The single family property at 309 64th St. listed at $699,900 went under contract and is scheduled to close on March 26, 2013. There are again a couple very strong investment buys with 2916 Avenue E leading the pack. This property is ideal for someone who wants a property in a great location (four houses to the beach) and that pays for itself with 30% down and wants to hold it for 5-10 years and then move down here permanently. At that point there are a set of plans available by Emily Smith to tear down the house and build a new home there. Check out the rest of the Great Buy’s attached.
To summarize the island market, although we only have sales for one month of 2013, it looks like the strong sales activity we have had over the last couple years will continue. The amount of people who are looking at property is as strong as I’ve seen it in the last 20 years. That’s the prime reason that the inventory has been at the low levels they have been this year. Another reason is, for example, in 2012 there were 381 condos and single families sold while there were only 300 new single family and condo properties listed on the market. January sales tend to start off slow. If you look at January 2013 sales at 18 compared to January 2012 sales of 28 it looks like a slow start but if you look at January sales over the last nine years (2005-2013) there are only two January’s where sales have been higher than the January 2013 number of 18. Single family sales continue to remain the highest in the last 30 years with 239 single families sold in the last 12 months compared to 179 for the previous 12 months. Single family and condo sales historically make up 2/3rds of the total sales on the island with sales of each being about even and duplex’s and lots make up the other third. Over the last 12 months single family and condo sales accounted for 85% of the total sales and single families were 57% of the total and condos 29% of the total. As far as sales prices go in the last 12 months, 80% of single family sales were under $700K, 93% were under $1 Million and 7% were over 1 Million. Of condo sales on the island in the last 12 months, 77% were under 400K, 93% were under 500K and there was only one sale over a Million dollars. This gives you an idea of where the sweet spot of the market is on the island.
I’ve added a new chart this month which shows what’s happening in the National Housing Market which comes from Standard & Poors. It shows the National home prices, 10-City Composite and 20 City Composite from 1988 to 2012. You can see that home prices nationally are starting to rise and approaching 2003 prices. This again confirms that prices are starting to approach the pre-bubble level and with interest rates at over a 100 year low now is the time to buy.
Call me, Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate. www.Alangalletto.com
JANUARY NEWSLETTER 2013
Happy New Year- Last January I started the Newsletter by saying “With 2009 the year of stabilization and improvement, 2010 was the year of the market poised to turn up, 2011 will be the year of a modest increase in prices” which it was and predicted 2012 would continue with modest increase in values which it did.
Sales in 2012 were the highest in the last 30 years except for 2005 & 2004. It was a record breaking year on Anna Maria. December 2012 sales were 38 (SF-27, Con-9, Dup-1 & Lot-1) up 46% over December 2011 at 26 (SF-14, Con-9, Dup-3 & Lot-0). December 31, 2012 Y-T-D sales were 430 (SF-244, Con-126, Dup-27, Lot-33) up 26% over December 31, 2011 at 340 (SF-174, Con-126, Dup-16 & Lot-24). Of the 2012 sales only 11% were distressed properties (bank owned or short sales) compared to 16% or 56 (SF-17, Con-30, Dup-6 & Lot-3) in 2011. Inventory on the island continues to remain low at 321 (SF-155, Con-106, Dup-32 & Lot-28). The inventory last month was 319 and for the last six months the inventory has ranged between 295 and 321.
If you’re looking for some very good properties to buy check out Frank, Larry’s & Al’s Great Buys this month. The best investment buy in the whole inventory is still 2916 Avenue E. It has averaged $65K in gross annual rental income for the past five years and did $66,778 in 2012 which makes it a 9.4 ratio (purchase price/Gross annual rental income) at list price. No other property has that low a ratio which is why it’s the best investment property currently for sale on the island. Check out the Cost of Ownership Analysis attached. Another property close to the beach (3 houses to the beach) is 115 36th St which has been recently reduced to $599K. There is plenty of room for a pool which would make it a great 2nd home or a very good investment property. One of the nicest new Gulf front condos currently for sale on the island is 108 36th St (Palm Gables). This unit was custom built, has been impeccably decorated with Robb & Stucki furniture and hand painted island murals and has never been a rental although it can be rented weekly. Check out the other great buys this month.
The strong Canadian dollar and the attractive real estate prices in south Florida have pushed Canadian snowbirds to south Florida in large numbers because of a perfect storm. Canadian baby boomers can find great real estate deals in Florida and the strong dollar buys more in the U.S. then it could in recent years (Source: Ft. Lauderdale Sun Sentinel). We have been seeing more Canadians come into the Island market in the last year than any time since most Canadians who owned property here sold out in the 1990’s when the U.S. dollar was very strong against the Canadian dollar.
To summarize the market, 2012 was a banner year with the first time since the MLS has been recording sales, except for 2005 & 2004, sales were over 400 properties (2012-430, 2004-435 and 2005-438). The one number that really jumps out at you is the number of single family homes sold in 2012 (244). If you look at the Marketing Stats graph you can see that there were more single family sales in 2012 than any other year ever. In 2005 only 182 , 2006 – 74, 2007 – 111, 2008 – 121, 2009 – 118, 2010 – 187 and 2011 – 175. Single family sales in 2012 were 30% higher than the next highest year which was 2011. Distressed properties remain low and will continue to do so into the future. They are currently at 6 (SF-4, Con-1, Dup-1 & Lot-0) 2% of the inventory. Pended properties ( properties under contract) have dropped down to the average range at 38 (SF-20, Con-9, Dup-5 & Lot-4).
An update on the Holmes Beach building moratorium on R2 lots which went into place Dec, 25th 2012, anyone looking to build new on an R2 lot in Holmes Beach is pretty much in limbo until the city lifts the moratorium. It will be lifted when they pass a floor to area ration on R2 lots. They have been discussing a LAR of .31 which means on a 5000 sq ft lot your maximum footprint would be 1,550 sq ft so the maximum 2 level up home would be 3,100 sq ft…..More to come.
Ask Alan Galletto-THE Realtor for real estate on Anna Maria Island, FL. 941.232.2216
NOVEMBER NEWSLETTER 2012
Sales continue at a record pace in October with 33 properties sold (SF-18, Con-8, Dup-2 & Lot-5) a 57% increase over October 2011 at 21 (SF-14, Con-3, Dup-3 & Lot-1). October 31, 2012 Y-T-D sales were 362 (SF-196, Con-113, Dup-22 & Lot-31) up 22% over October 31, 2011 at 297 (SF-150, Con-112, Dup-12 & Lot-23). Of the October 31, 2012 Y-T-D sales of 362 only 11% or 42 properties (SF-21, Con-17, Dup-4 & Lot-0) were distressed (bank owned or short sales) compared to October 31, 2011 Y-T-D in which 16% or 47 (SF-15, Con-25, Dup-12 & Lot-23) were distressed. Sales for the last 12 months were 405 (SF-220, Con-127, Dup-26 & Lot-32) with 51 properties (SF-23, Con-22, Dup-5 & Lot-1) or 13% distressed. Pended properties (properties under contract) continue to be very strong at 62 (SF-37, Con-14, Dup-7 & Lot-4) which bodes well for continued high sales for the next several months. Due to the strong sales volume Inventory on the island continues to remain at historical lows at 302 (SF-148, Con-97, Dup-28 & Lot-29) up a tick from 298 last month but down from 315 in September.
Another two of Frank, Larry & Al’s Great Buy’s went under contract since the last newsletter. The single family home with a pool west of Gulf Drive at 113 75th St listed at $629,000 and 5802 Imperiore, a single family 3BR/2bath with a pool listed at $449,000. Both of these properties went close to their list price. The best investment buy on the island out of the 149 single family properties for sale is still 2916 Avenue E listed at $629,000. For someone looking for a great location (four houses to the gulf) to build a home but isn’t ready to build for a few years, this is the property to buy. It does about $65,000 in gross annual rental income and with 30% down it pays all operating cost and the mortgage. Just rent it for 4-5 years then tear it down and build a new elevated home which would have peaks of the gulf (Emily Smith, the local architect, has already done plans for this location). Another sleeper is 108 36th St, a 3bedroom/2.5bath direct Gulf Front condo in Palm Gables, a seven unit condo association. This owner bought it new and has never rented it but it would be a very good rental.
To summarize the current market, with only a month and a half left to go, 2012 is shaping up to be as good a year as 2005 which was the best year for sales in the last 30 years on record. We have been running about 20% ahead of last year in sales all year and if we only match 2011’s November and December sales we will end up over 400 for the year. It will be the only year that sales were over 400 within the last 30 years except for 2005. Another interesting fact is although sales for 2012 will come in just a little under the peak year of 2005, single family sales for 2012 will be higher than 2005 or any other year in the last 30 years. Looking at the distribution of sales, with the end of the year close by, they are running at about what they have been running all year long. The distribution of single family sales over the last 12 months were 49% <$500K, 69% <$600K, 80% <$700K and only 7% over 1 million. The distribution of condo sales over the last 12 months were 80% <$400K, 90% <$500K, 96% <$700K and only 2% over 1 million. The number of Distressed Properties (bank owned or short sales) continues to be extremely low as they have been all year at 5 (SF-3, Con-2, Dup-0 & Lot-0). Of the sales over the last 12 months (405) only 13% (51) were distressed. Of the October 31, 2012 Y-T-D sales (362) only 11% were distressed compared to October 31, 2011 sales (297) which had 16% (47) distressed properties. As we have seen since the 2006 peak of almost 1,000 properties for sale the inventory has continued to come down to the normal of 450-500 properties for sale and now currently at the lowest it’s been since the peak years of 2003-2005. The inventory on the island this month is at 302compared to 304 the previous month, 315 the month before that and 434 in October of 2011. Pended properties (properties under contract) are currently at 62 (SF-37, Con-14, Dup-7 & Lot-4) which means sales will continue strong over the next couple months. Currently the majority of properties are selling within 5% of list price with some selling at list. The island market is strong and we should see modest appreciation again this year.
Call me, Realtor: ALAN GALLETTO
941.232.2216 of Island Real Estate. www.AlanGalletto.com
SEPTEMBER NEWSLETTER 2012
Sales continue at a record pace in August with 37 properties sold (SF-19, Con-11, Dup-3 & Lot-4) a 48% increase over August 2011 at 25 (SF-14, Con-8, Dup-0 & Lot-3). August 31, 2012 Y-T-D sales were 295 (SF-165, Con-92, Dup-19 & Lot-19) up 20% over August 31, 2011 Y-T-D at 246 (SF-119, Con-100, Dup-8 & Lot-19). Of the August 31, 2012 Y-T-D sales of 295 only 12% or 37 properties (SF-18, Con-15, Dup-4 & Lot-0) were distressed (bank owned or short sales) compared to August 31, 2011 Y-T-D sales in which 15% or 37 (SF-13, Con-19, Dup-4 & Lot-1) were distressed. Sales for the last 12 months were 389 (SF-220, Con-118, Dup-27 & Lot-24) with 56 (SF-22, Con-26, Dup-6 & Lot-2) or 14% distressed. Pended properties (properties under contract) are down from last month but still exceptionally strong at 55 (SF-32, Con-17, Dup-4 & Lot-2). The high number of pended properties continues to drive high sales. Inventory on the island continues to move down at 304 (SF-148, Con-99, Dup-24, Lot-33) the lowest it’s been since 2005 and down again from last month’s 315.
Two more of Frank, Larry & Al’s Great Buy’s went under contract since the last newsletter. The single family lot on 306 Spring Ave and 5704 Holmes Blvd the single family home on a conforming duplex lot. For those of you still looking for a lot the one at 106 Beach Ave (3 houses from the beach) is still available listed at $649,000. I’ve also just listed an older home at 142 Crescent Dr. which sits across two platted lots for $499,000. You can improve the house that’s there or tear the house down and build on one lot and sell the other. Another new listing you should look at is a totally remodeled 3 bedroom/2 bath single family home close to the beach at 5802 Imperiore. It has high ceilings in the living area and a grotto pool which would make it a very good rental. Check out the detail on these in Frank, Larry & Al’s Great Buy’s.
You may have read in the local paper the controversy around rental of some of the 5,6 & 8 bedroom homes being built. Most of the issues revolve around the number of cars parked around the property and late night noise around the pools. We do not have any of these “Motel Homes” in our rental program but Larry has met with some of the other large rental agencies to develop a “Best Practices” approach to head off these kinds of problems and he has implemented a “test drive” of them over the last 6-7 months. It includes giving renters when they check in a written list of do’s and don’ts, and giving the police a list of our rental properties so they can call us right away if there is a noise issue. Island Real Estate has only had about 15 issues over that period of time and under our program we are proud to communicate there were no second complaints on any guests that were visited due to late noise issues. We attribute this to an IRE on call person visiting the property when there is noise disturbance at a vacation rental. We take the quite enjoyment of our community seriously and hope other companies will follow our lead to cease late night noise immediately by visiting the property regardless of the time of day… OR night.
To summarize the current state of the market the trends we have seen all year continue to hold. Sales at 30 year peak level highs and inventory at historic lows. The number of sales Year-To-Date for 2012 are 20% above 2011 and continue to be on track to end the year around 400 properties sold. The distribution of sales for the year continue unchanged. The distribution of single family sales over the last 12 months were 50% <$500K, 71% <$600K, 81% <$700K and only 7% over $1 Million. The distribution of condo sales over the last 12 months were 82% <$400K, 91% <$500K, 96% <$700K and only 3% over $1 Million. The number of Distressed Properties (bank owned or short sales) continue to be extremely low at 10 (SF-5, Con-5, Dup-0 & Lot-0) or 3% of the inventory. Of the sales over the last 12 months (389) only 14% (56) were distressed. Of the August 31, 2012 Y-T-D sales (295) only 12% (37) were distressed properties compared to August 31, 2011 Y-T-D sales (246) which had 15% (37) distressed properties. As we have seen for the past year the inventory on the island has continued to decline. Inventory this month has hit another historic low at 304 compared to 315 last month and 332 in July and 434 in September of 2011. The outlook for the island market continues to be strong with sales at historic highs and inventory at historic lows. In 2011 we began to see a balance of the negotiating position of buyer and seller compared to the buyer’s market prior to 2011. In 2012 we are now seeing the market change to a seller’s market as evidenced by properties selling close to or at list price.
Go to my website to search the MLS for properties www.Alangalletto.com or Call me, Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate, and I’ll send them right to you!
AUGUST NEWSLETTER 2012
The pace of sales continues to be strong in July with 30 properties sold (SF-13, Con-14, Dup-2 & Lot-1) an 11% increase over July 2011 at 27 (SF-16, Con-7, Dup-0 & Lot-4). July 31, 2012 Y-T-D sales were 264 (SF-146, Con-81, Dup-22 & Lot-15) up 19% over July 31, 2011 Y-T-D at 221 (SF-105, Con-92, Dup-8 & Lot-16). Of the July 31, 2012 Y-T-D sales of 264 only 11% or 31 (SF-15, Con-14, Dup-2 & Lot-0) were distressed (bank owned or short sales) compared to July 31, 2011 Y-T-D sales in which 15% or 34 (SF-13, Con-16, Dup-4 & Lot-1) were distressed. Sales for the last 12 months were 383 (SF-215, Con-115, Dup-30 & Lot-23) with 53 (SF-19, Con-28, Dup-4 & Lot-2) or 14% of them distressed. Pended properties (properties under contract) are again exceptionally strong at 72 (SF-41, Con-21, Dup-5 & Lot-5) which means a continuation of strong sales in the next 2-3 months. Inventory on the island is the lowest it’s been since the 3rd quarter of 2005 at 315 (SF-151, Con-109, Dup-19 & Lot-36). It has continued to drop from August of 2011 when it was at 429.
For those of you who may want to build the house of your dreams I’ve added a couple lots in great locations to Frank, Larry & Al’s Great Buys this month. 306 Spring Avenue in the city of Anna Maria is only two blocks to the beach and plenty of room for a custom house with a pool on its 52×145 lot and in that location it would be a very good rental. If you want to be even closer to the beach 106 Beach Avenue also in the city of Anna Maria is three houses to the Gulf of Mexico. It’s the last non-gulf front lot left in Banyan Tree Estates and you can build up to a 5,600 sq ft home with a pool on this 90×106 lot. If you want something already built and ready to go check out the other 9 and 10 ratio (purchase price/Gross annual rental income) properties in our Great Buys.
Since we’re still in hurricane season I’ve published the map showing the Continental United States Hurricane landfalls from 1950-2011 published by NOAA. The 2012 season so far has been pretty mild with no significant hurricanes landing or coming close to the west coast of Florida and as you can see from the map, that is not unusual. If you want to live on the coast of the U.S. the west coast of Florida is about as safe as anywhere. NOAA also has a map of the major hurricane (category 3,4 & 5) landfalls form 1899-1996. As you can see the closest landfall to Anna Maria Island area was just north of Tampa in 1921.
To summarize the market as of August 2012, it continues to perform as it has all year at 30 year peak levels but at a steady healthy pace. The number of sales so far Year to Date in 2012 is running 19% above 2011 at this time and we are on a track to end the year at around 400 properties sold. That would make it the only year we it 400 in sales except for 2005, the peak year in sales on the island when we had sales of 425. The distribution of single family sales over the last 12 months were 50% (107) <$500K, 70% (152) <$600K, 80% (173) <$700K, 93% (199) <$1 Million and 7% (16) >$1 Million. The distribution of condo sales over the last 12 months were 83% (95) <$400K, 90% (104) <$500K, 96% (110) <$700K, 97% (112) <$1 Million and 3% (3) >$1 Million. These percentages for the previous 12 months haven’t changed since the beginning of 2012. The number of distressed properties (bank owned or short sales) for sale continues to be extremely low at 8 (SF-5 & Con-3) or 3% of the inventory. Of the sales over the last 12 months only 14% were distressed. Of the July 31, 2012 Y-T-D sales of 264 only 11% (31) were distressed properties compared to July 31, 2011 sales of 221 which had 15% (34) distressed properties. As I mentioned in last month’s newsletter the normal average inventory (properties for sale) on Anna Maria Island are 450-500. The current inventory is 315 which is the lowest it’s been since 2005. The outlook for the island market for the rest of the year continues to be very positive with inventory at historical lows and sales at historical highs. With interest rates at historical lows (see the 200 year interest rate chart) there will never be a better time to buy especially if you plan on financing.
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Ask Alan -THE Realtor for other great real estate on Anna Maria Island, FL.
ALAN GALLETTO 941.232.2216 of Island Real Estate. www.Alangalletto.com
JULY NEWSLETTER 2012
Sales continue to be strong in the island market with sales for June 2012 at 36 (SF-23, Con-9, Dup-2 & Lot-2) up 13% compared to sales for June 2011 at 32 (SF-14, Con-15, Dup-1 & Lot-2). June 30, 2012 Year-To-Date sales were 228 (see detail below) up 18% compared to June 30, 2012 Year-To-Date sales of 194 (see detail below). Of the June 30, 2012 Y-T-D sales only 11% or 25 (SF-12, Con-11, Dup-2 & Lot-0) were distressed (bank owned or short sales) compared to June 30, 2012 Y-T-D sales in which 16% or 31 (SF-11, Con-15, Dup-4 & Lot-1) were distressed. Sales for the last 12 months were 373 (SF-218, Con-108, Dup-21 & Lot-26) with 50 (13%) of them distressed compared to sales of the previous 12 months of 362 (SF-184, Con-137, Dup-20 & Lot-21) with 87 (24%) of them distressed. Pended properties (properties under contract) still remain strong at 69 (SF-36, Con-23, Dup-6 & Lot-4) which continues to fuel strong sales over the next 60 days. Inventory continues to remain low at 332 (SF-158, Con-112, Dup-23 & Lot-39) compared to 334 last month and 442 in July of 2011. The inventory has continued to drop in 2012 from 427 in January 2012 to the current 332. The average normal inventory for the island is 450-500 properties at any one time.
The two properties that went under contract last month from Frank, Larry & Al’s Great Buys closed this month. The west of gulf drive property at 109 75th St closed at $525,000 and the property at 319 64th St closed at $425,000. Again this month the best investment buy on the island is 2916 Avenue E. I can’t believe an investor hasn’t grabbed this property by now. It is 4 houses to the beach and is a 9 ratio property, with 20% down and a 30 year mortgage at 5% the rentals pay all operating expenses and just about all the debt service (principle and interest) on the property. Once you put 20% down the property carries itself. There must be one person out there who is looking for a property that is close to the beach and carries itself. I’ve attached a “cost of ownership” for this property in the back of the newsletter. Check out the other “Frank, Larry & Al’s Great Buys” in the next blog or go right to my website to see them and all the stats.
In summary, the island market continues to perform at peak year levels. Sales for 2012 are running at the rate for 2003, 2004 & 2005 which were the three highest year’s sales in the last 30 years and 18% ahead of 2011 which had sales of 340 properties. The distribution for single family sales over the last 12 months were 50% (108) were below $500K, 70% (153) were below $600K, 79% (173) were below $700K and 8% (18) were over one million dollars. The distribution for condo sales over the last 12 months were 81% (87) were under $400K, 91% (98) were under $500K, 95% (103) were under $700K and 3% (3) were over one million dollars. The number of distressed properties (short sale or bank owned) are extremely low at 9 (SF-4, Con-3, Dup-1 & Lot-1) or 3% of the inventory. Of the June 30, 2012 Y-T-D sales of 228 only 11% were distressed properties. Of the sales over the last 12 months only 13% were distressed compared to 24% over the previous 12 month sales. The inventory in the last 3-4 months has settled in the low 300’s which is significantly lower than the average normal inventory of 450-500 properties. The only time the inventory on the island has dropped below 300 was the peak years of 2004 and 2005 otherwise it has never been lower than it is currently. With the inventory so low the number of great rental properties (properties close to the beach) are very few. Currently there are only 16 properties for sale west of gulf drive. Of those only 5 are under one million dollars and there are non under $600K. The outlook for sales for the rest of the year is very positive. With the inventory so low and sales so strong we will be seeing appreciation in prices again for 2012 probably in the 6%-7% range.
Because we are in the middle of Hurricane season I’ve included the updated N.O.A.A. Hurricane landfall chart from 1950-2011. Hope you enjoy it. Until next time… we’re living in paradise.
Call me, Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate. www.Alangalletto.com