Happy New Year – 2010 turned out to be a banner sales year on the island.  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.  December 2010 sales were 36( SF-20, Con-14, Dup-1 & Lot-0) up 29% over December 2009 at 28 ( SF-12, Con-14, Dup-2, & Lot-0).  Sales for 2010 were 317 (SF-185, Con-94, Dup-23 & Lot-15) up 35% over 2009 at 234 (SF-118, Con-94, Dup-10 & Lot-12).  Sales for 2010 were the highest since 2005, the peak year on the island, with sales of 478.  To put that in perspective, sales for 2006 were 166, 2007, 184, 2008 were 211 and of course 2009 were 234.  Of the 317 properties sold in 2010, 91(SF-46, Con-32, Dup-11 & Lot-2) have been Distressed (short sales or bank owned) properties or 28% of the sales.  Compared to 2009 when of the 234 sales, 43 (SF-15, Con-22, Dup-4 & Lot-2) were Distressed properties or 18% of the sales.  Distressed properties are currently at 36 (SF-16, Con-14, Dup-5 & Lot-1) which is about 6% of the inventory.  Pending sales (properties under contract) are down a little from previous months to 38 (SF-19, Con-15, Dup-1 & Lot-3) but still healthy.  Island Real Estate had another strong month in December with 10 properties closed and 6 new contracts.  Inventory on the island is currently at 518 (SF-256, Con-178, Dup-35 & Lot-49).  The island inventory has been holding at around the very low 500’s for the past five months. 
 As you have seen, sales were very good last year in our island vacation market but that has been true across the country in vacation home markets.  I’ve included an article from the Wall Street Journal on January 10, 2011 “Market for Vacation Homes On the Rise”.  The article states that “Sales in many vacation communities across the U.S. soared last year to levels not seen since the boom times, driven by deep discounts, cash purchases and buyers rising stock portfolios.”  Examples are Hilton Head Island S.C. rose 14% and Palm Beach, FL. Experienced a 40% annual increase in sales.  They go on to say “The question now is whether the momentum will last.  The strength of second-home sales paints a stark contrast to the overall housing market, which is expected to worsen in 2011”.  “The proverbial train has left the station,” said Ned Monell, an agent with Sotheby’s International Realty in Palm Beach.  “We haven’t felt energy like this in a long time.  Buyers sense that they’ve been on the sidelines long enough.”  Read the full article at the end of the newsletter.
 Two more properties from Frank & Al’s Great Buy’s were put under contract since the last newsletter, 612 N Bay Blvd. and 3210 6th Ave (Palm Isle Village).  At Palm Isle Village that leaves only three units left (3205, 3204 & 3201) and these units have the lowest cost of ownership of anything on the island especially in the $300K – $500K price range.  If you check out the Great Buy’s sheet I’ve listed several that have either great rental income or have the potential, with minor improvements, to have great rental income.  If you’re looking for an investment home or a second home that will pay the operating expenses and a large part of the mortgage than check out the last four properties on the list.  A great canal buy is 618 Hampshire Lane listed at $695,000.  It fronts on the golf course and backs up to the large canal off  Bimini Bay which feeds most of the canals in Key Royale.  The only downside is it’s next to our house (only kidding, just wanted to see if you were awake). 
 In summary, sales of property on the island have continued to increase from 2006 at 160 properties to 2010 with 317 properties sold, well above the average of 250 and the highest level since 2005 (478) and almost equal to 2003 (325).  The average sale price of single family homes and multi-family homes look poised to start trending up while condos still have a way to go.  The inventory is very close to normal levels.  The next thing to look for is a drop below 500 and at that point it should start to drive up sales prices. 
JANUARY 1, 2010 – DECEMBER 31, 2010 SALES ON ANNA MARIA ISLAND
 # Sold Lowest  Highest Avg. Price Sold Median Price Sold
HOMES 185 $154,000 $2,350,000 $512,596 $465,000
CONDOS 94 $29,000 $1,667,000 $292,077 $239,450
DUPLEXES 23 $170,000 $1,360,000 $392,326 $357,500
LOTS 15 $200,000 $850,000 $406,727 $345,000
TOTAL 317    

JANUARY 1, 2009 – DECEMBER 31, 2009  SALES ON ANNA MARIA ISLAND
 # Sold Lowest  Highest Avg. Price Sold Median Price Sold
HOMES 118 $160,000 $950,000 $518,276 $452,500
CONDOS 94 $109,900 $1,700,000 $353,806 $282,250
DUPLEXES 10 $181,000 $505,000 $399,083 $379,829
LOTS 12 $287,000 $850,000 $414,350 $355,000
TOTAL 234    

  
Keep those calls and e-mails coming!  We love hearing from you……Alan & Frank

                                 December NEWSLETTER 2010 

  The number of sales on the island continue to be strong with sales up 42% for November 2010 at 27 (SF-16, Con-7, Dup-2 & Lot-2) compared to sales in November 2009 at 19 (SF-9, Con-8, Dup-1 & Lot-1).  Year-to-date sales through November 30, 2010 continues to stay well ahead of last year, up 36% at 281 (SF-165, Con-80, Dup-22 & Lot-14) compared to November 30, 2009 Y-T-D at 206 (SF-106, Con-80, Dup-8 & Lot-12).  Pended sales (properties under contract) continue to be strong at 57 (SF-32, Con-19, Dup-3 & Lot-3) equaling last month’s 57 which continues to bode well for sales in the next couple months.  The normal distribution of sales in the past has been 75% under $800K and 25% over $800K.  Over the last two years the distribution has been more skewed to the low end with 94% of sales under $800K and 6% over $800K.  This distribution tends to understate the average and median home sales when comparing to previous years.  Island Real Estate also continued its strong performance in November with 7 contracts closed and 12 new contracts. 
 Inventory continues to slowly move down to the normal range (450-500) with it currently at 516 (SF-256, Con-174, Dup-34 & Lot-52) compared to 521 last month.  Distressed properties (short sales & bank owned) continue to decline and are currently at 30 (SF-13, Con-12, Dup-4 & Lot-1) down from 37 in September and 43 in August.  Distressed properties on the island are currently running at about 5% of the inventory which is extremely low compared to other markets.  As this number moves to zero we will be positioned to see an uptick in average and median sale prices. 
 Two more units at Palm Isle Village have closed, 3215 Gulf Dr at $331,000 and 3209 Gulf Dr at $475,000, that is 7 sold and only 4 left.  This month in Frank & Al’s Great Buy’s I have highlighted properties that are not only great buy’s but either have a great rental history or with a little modification would be very good rentals.  Since most buyer’s of property on the island are buying second homes, if the property can rent well it can pay the operating expenses and leave some left over to help pay the mortgage.  Most properties, because of location and the type of property it is, have trouble paying the operating expenses let alone covering any of the mortgage.  So, you not only need a good buy, but a property that is located and has the amenities to maximize rentals.  This month we have recommended five properties that meet those criteria.  Palm Isle Village unit 8 (3204 6th Ave) has a three and a half year rental record of doing $29,000 + in gross revenue.  Starfish Beach unit 1 (2915 Ave E) has a four year history of rentals in the $33,000 range.  The other three properties (787 Jacaranda, 704 Rose and 612 N Bay Blvd) are great buy’s in great rental locations and with minor improvements would be very good rentals.  If you’re looking for a lot, the lowest priced canal lot on the island is still 718 Key Royale Drive.
 Since last month interest rates have been slowly creeping up.  Currently conforming (up to $417,000) 30 year fixed loans are at about 5% with conforming 15 year fixed at 4.6%.  Six weeks ago 30 year conforming loans were under 4%.  Even though we’re seeing rates creep up they are still at all time lows and no one’s predicting that they will be going up significantly any time soon.  If you are shopping around for financing in the area I would recommend you talk to Wayne Gunter at BB&T Bank (941-720-6820), Russ Dozeman at Regions Bank (941-726-1319 or Susan Tyson at Wells Fargo (941-809-3802).  They have all worked with some of my clients this year. 
 To summarize, since the prices have adjusted down to the current market from the peak at the end of 2005, all the indicators show a very healthy island market.  The inventory is just about down to normal levels, the number of distressed properties is at an all time low and sales on the island are the highest since the peak year of 2005.  Although there aren’t many steals left on the island there are many very good values at market price with great rental capability.