Real Estate Broker/Associate (941) 232-2216
Monthly News Letter
January 2012 Real Estate Newsletter Anna Maria Island, FL -ALAN GALLETTO, Realtor
Jan 21st
JANUARY NEWSLETTER 2012
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” and that is how 2011 has shaped up.
Sales for December 2011were 26(SF-14, Con-9, Dup-3 & Lot-0) compared to Dec 2010 which were 37(SF-20, Con-15, Dup-1 & Lot-1). Sales for all of 2011 were 340 (SF-174, Con-126, Dup-16 & Lot-24) compared to 2010 which had sales of 319 (SF-187, Con-94, Dup-23 & Lot-15). In 2010 30% of the sales were distressed properties (short sale or bank owned) compared to only 16% of the 2011 sales. Currently there are 17 distressed properties (SF-7, Con-7, Dup-3 & Lot-0) in the inventory of 427 (SF-198, Con-145, Dup-31 & Lot-53). Of the 17 distressed properties 11 are in Bradenton Beach and 6 are in Holmes Beach. Of the 11 in Bradenton Beach 7 are short sales and 4 are bank owned. Of the 6 in Holmes Beach 5 are short sales and 1 is bank owned. Pended properties (properties under contract) continue to be strong at 45(SF-19, Con-19, Dup-4 & Lot-3) which is a good sign for continued strong sales. Inventory on the island has dropped down to 427 down from 456 last month.
This month’s Frank, Larry & Al’s Great Buy’s hasn’t changed from last month except that they have become much more attractive from a price stand point. If you’re looking for a condo under $400K that generates enough gross revenue to equal the purchase price in 10 years then Island Garden Villa’s are for you. We also have bank financing available these units with 30% down as a second home. The bank owned property at 5505 Gulf Drive has just been reduced for a second time to $324,900. This property is within 2 blocks of the beach and would be an excellent rental after a remodel and pool addition. Another property that is steps to the beach and is a proven great rental is 2916 Avenue E a pool home that has just been reduced for the second time to $649,000. For those of you who want the most luxurious condo on the island then view the virtual tour of 3716 Gulf Drive listed at $2,999,000 you won’t be disappointed.
To summarize the market for 2011, sales for the fourth quarter were above average and lower than 2010’s fourth quarter sales but total sales for 2011 ended up 6% over 2010 at 340. This made total sales for 2011 the best year since the peak year of 2005. In addition, single family average sale prices were up 15% over 2010 and single family median sales prices were up 5% over 2010. Condo average sales prices were up 6% over 2010 and condo median sales prices were up 7% over 2010. Lot average sales prices were up 7% over 2010 and lot median sales prices were up 15% over 2010. Duplex sales prices were flat with duplex average sales prices down 3% over 2010 and duplex median sales prices up 5% over 2010. Distressed properties continue to shrink to only 4% of the inventory or 17 properties. Distressed properties on the island were never higher than 10% since the market started dropping in 2006. The island market looks very stable with prices rising, sales transactions rising, distressed properties very low, inventory below average norms and the number of high value properties to choose from shrinking. If you look at the chart at the bottom of the next page, sales from 2002 -2011, it gives you a good perspective on the island market since 2000. The years 2003-2005 were the years that the real estate market got very over heated which drove prices up about 25% per year which in turn drove transactions up. Prior to 2000 real estate sales on the island ranged between 200-250 per year and the 30 year average of increase in values was about 5% a year. If we get back to a 5%-7% increase in values, that would give us a healthy sustainable market. Based on where we are it looks like we’re on track to continue in that direction.
JAN 1 – December 31 ’2011 SALES ON ANNA MARIA ISLAND
# Sold Lowest Highest Avg. Sale Price Median Sale Price
HOMES 174 $150,000 $2,650,000 $591,456 $490,000
CONDOS 126 $ 65,000 $2,075,000 $311,234 $255,783
DUPLEXE 16 $237,000 $ 590,000 $382,181 $375,000
LOTS 24 $127,000 $1,350,000 $433,794 $400,000
TOTAL 340
JAN 1 – December 31 ’2010 SALES ON ANNA MARIA ISLAND
# Sold Lowest Highest Avg. Sale Price Median Sale Price
HOMES 187 $154,000 $2,350,000 $511,391 $465,000
CONDOS 94 $70,000 $1,667,000 $292,832 $239,450
DUPLEXE 23 $170,000 $1,360,000 $392,326 $357,500
LOTS 15 $200,000 $ 850,000 $406,727 $345,000
TOTAL 319
SALES 2002-2011
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
HOMES 174 187 118 121 111 74 182 243 198 145
CONDOS 126 94 84 57 71 45 186 101 118 82
DUPLX 16 23 10 26 10 15 53 70 31 33
LOTS 24 15 12 7 7 4 17 21 7 12
___ ____ ____ ____ ____ ____ ____ ____ ____ ____
TOTAL 340 319 224 211 199 138 438 435 354 272
Keep those calls and e-mails coming! We love hearing from you……Alan, Frank & Larry
Go to http://AlanGalletto.com for complete charts and figures. HAPPY NEW YEAR!
DECEMBER 2011 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Dec 26th
2011 DECEMBER NEWSLETTER
Sales for November 2011 were 17 (SF-10, Con-5, Dup-1 & Lot-1) down from November 2010 sales of 27 (SF-16, Con-7, Dup-2 & Lot2). Sales for November 30, 2011 Y-T-D were 316 (SF-161, Con-118, Dup-13 & Lot-24) up 12% over November 30, 2010 Y-T-D at 283 (SF-167, Con-80, Dup-22 & Lot-14). Only 16% of the November 30, 2011 Y-T-D sales were distressed (Bank Owned or Short Sales) compared to 30% distressed for November 30, 2010 Y-T-D. Pended properties (properties under contract) have jumped up from 44 last month to 56 (SF-30, Con-19, Dup-5 & Lot-2) currently and well above the average. Inventory has bumped up a little more from last month to 456 (SF-206, Con-160, Dup-33 & Lot-57) but still in the low end of the average range (450-500). Of the 456 properties currently for sale 94 are in Anna Maria City (SF-55, Con-5, Dup-3 & Lot-31) and of the 456 properties currently for sale the distressed properties are still at 5% of the inventory at 26 (SF-11, Con-12, Dup-3 & Lot-0). Of the 11 single family distressed properties 9 are short sales and 2 are bank owned and 7 are in Holmes Beach and 2 in Bradenton Beach. Of the 12 condo distressed properties 6 are bank owned and 6 are short sales with 2 of the 12 in Holmes Beach and 10 in Bradenton Beach. Of the 26 distressed properties on the island 17 are short sales, 9 are bank owned, 17 are in Bradenton Beach and 9 are in Holmes Beach.
For those of you who are looking to buy property check out Frank, Larry & Al’s Great Buy’s this month. The property at 5505 Gulf Drive is still on the market. It’s a bank owned non-conforming duplex (2BR/2Bath & 1BR/1Bath) very close to the beach and reduced from $414,900 last month to $399,900 now. Its highest and best use would be a remodel to a 3 bedroom/3 bath with a pool and it would be a great rental. For those of you who are looking for an entry level condo with great rental income close to the beach than Island Garden Villas is the place to look. If you wanted Palm Isle Village before they sold out than these are very comparable. They run from $299,000 to $479,000…take a look at the virtual tours. Another great second home or investment property and just reduced to $675,000 is 2916 Avenue E. This is a 10 ratio (gross rental income to purchase price) which is about as good as you get on the island and means that with 20%-30% down the rental income pays the operating expense and most of the mortgage. A new listing this month, a one of a kind condo, is 3716 Gulf Drive listed at $2,999,900. This is in a three unit condominium and with 3,248 sq ft, a long list of amenities, a private garage and workshop along with 2 parking spaces in the common garage and two votes out of the four in the association this 3/4bedroom/3.5 bath condo is unique on the island. There is nothing else like it so check out the virtual tour.
To summarize the market to date, sales continue to be strong up 16% over last November 30 Y-T-D and with one month left to go in the year it looks like we will have a healthy increase in the number of sales on the island over 2010 which was (excluding the three crazy years of 2003, 2004 & 2005) the best year in sales in the last 20 Years. If you look at the average and median sales charts by property you can see that they are up over last year for single family homes, condos and lots. Next month, when the numbers are all in, I will be able to tell you by how much. Inventory did bump up a little as it did last month but is still in the low end of the average range (450-500). The numbers of distressed properties (short sales & bank owned) continue to be low at 26.
Some new news for those of you who haven’t heard on December 9, 2011 Island Real Estate purchased the real estate and business of Betsy Hills Real Estate on Pine Avenue. Our new second location in Anna Maria is at 419 Pine Avenue. Both Betsy Hills and we are very happy with the sale. Betsy will be joining Island Real Estate as a Broker Sales Person along with the realtors that worked for her. We welcome the synergy and energy that it will bring to Island Real Estate and it will also allow us to be closer to all our customers on the island. Stop in to say hello when you’re in Anna Maria City.
Call Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate.
For the full Newsletter with statistics and graphs go to Al’s website at; www.Alangalletto.com
NOVEMBER 2011 Real Estate Newsletter Anna Maria Island, FL. ALAN GALLETTO, Realtor
Dec 16th
NOVEMBER 2011 NewsLetter
Sales for October 2011 were 21 (SF-14, Con-3, Dup-3 & Lot-1) equal to October 2010 at 21 (SF-10, Con-8, Dup-1 & Lot-2). Sales for October 31, 2011 Y-T-D were 299 (SF-151, Con-113, Dup-12 & Lot-23) up 17% over October 31, 2010 Y-T-D at 256 (SF-151, Con-73, Dup-20 & Lot-12). Of the October 2011 Y-T-D sales 15% were distressed (Bank owned or short sales) compared to October 2010 Y-T-D sales in which 30% were distressed. Pended properties (properties under contract) are currently at 44 (SF-23, Con-17, Dup-2 & Lot-2) five lower than last month but still above average. Inventory on the island bumped up 24 over last month but is still below average (450-500) at 440 (SF-200, Con-156, Dup-32 & Lot-52) which is 81 below the same time last year. Of the 440 properties currently for sale on the island only 5% or 22 (SF-10, Con-10, Dup-2 & Lot-0) are distressed the same percentage of the inventory as last month. Of the 10 single family distressed properties 8 are short sales, 2 are bank owned and 3 of the 10 are in Bradenton Beach. Of the 10 distressed condos 6 are short sales, 4 are bank owned and 8 of the 10 are in Bradenton Beach.
Another one of Frank, Larry and Al’s Great Buy’s has gone under contract this month. The property at 116 52nd St went under contract two weeks ago and should be a great rental for the buyer. But don’t worry there are still some good opportunities left. One, a nonconforming duplex at 5505 Gulf Drive is a little sleeper. It’s a 2/2 & 1/1 duplex that is bank owned, it’s listed at $414,900 and very close to the beach. This is a potential remodel into a 3 bedroom/3 bath single family with a pool. Also this month I’ve included three new listings in three different price categories. First 126 Hammock Road, listed at $749,000, a 3 bedroom/3 bath, 2399 sq ft canal home in the north end of Ann Maria. With plenty of room for a pool it’s close enough to the beach to be a very good rental while at the same time you can keep your boat docked behind your house. The second one is a cute bright beach cottage at 5704 Holmes Blvd, listed at $459,000 NOW $419,000, this 2 bedroom/2 bath with a den, 1.5 blocks to the beach has plenty of room for a pool. Third is a condo at Sunbow Bay 3705 East Bay, listed at $234,900 it’s a recently remodeled 2 bedroom/2 bath very nice unit. This would be a great starter unit for someone looking to buy a second home on the island. Last but not least don’t forget the units at Island Garden Villas 5607 Gulf Drive. These one and two bedroom units ranging in price from $299,000 to $479,000 already have a great rental track record.
To summarize, sales continue to be strong for the 2011 with sales up 17% over last year and with only two months left in the year it looks like we will beat 2010. Inventory, although it bumped up a little this month, still is below average at 440. Pended properties (properties under contract) continue to remain above average at 44 continuing a healthy pipeline for the next couple month’s sales. The number of distressed properties (short sales & bank owned) at 22 are the lowest they have been since the market started dropping in 2006 and remain at 5% of the inventory. Looking at the chart on average and median sales price by property type from 2005 to 2011, you can see that single family, condo and land prices are moving upward while duplex prices have stayed relatively flat since the peak of 2006.
Rentals continue to be very good on the island, so good that it has caused some problems for some of the neighborhoods in Holmes Beach. You may have seen mention of it in the local newspapers. The major source of the problem is the large 6-8 bedroom land condo’s recently built as rental machines. This has caused parking problems and excessive noise issues in the neighborhoods that they are in. Island Real Estate has a few of these and we have been at the forefront of putting in place practices that minimize the effects of these rentals on the surrounding properties. The island has always had a good relationship between tourists and locals and we want to make sure that doesn’t change. If you have any questions regarding this issue please don’t hesitate to call Larry Chatt or myself.
Call Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate.
OCTOBER 2011 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Dec 7th
October 2011 NEWSLETTER
Sales for September 2011 were 30 (SF-17, Con-9, Dup-1 & Lot-3) down 16% from September 2010 at 35 (SF-20, Con-9, Dup-4 & Lot-2). August and September are the first two months this year that sales have not exceeded last year. September 30, 2011 Y-T-D were 278 (SF-137, Con-110, Dup-9 & Lot-22) up 18% over September 30, 2010 Y-T-D at 235 (SF-141, Con-65, Dup-19 & Lot-10). Of the September 2011 Y-T-D sales only 15% were distressed (Bank owned or short sales) compared to September 2010 Y-T-D sales in which 29% were distressed. Pended properties (properties under contract) are currently at 49 (SF-33, Con-13, Dup-2 & Lot-1) eleven lower than last month but still above average. Inventory on the island continues to drop and is well below average (450-500) at 417 (SF-190, Con-147, Dup-31 & Lot-49) which is 17 below last month and 105 below the same time last year. Of the 417 properties currently for sale on the island only 5% or 26 (SF-9, Con-11, Dup-4 & Lot-0) are distressed.
Check out this month’s Frank, Larry & Al’s Great buys, there are investment opportunities from good to great. One investment opportunity that I identified a few months ago just recently sold. It was a 4-plex (four 2BR/1Bath units) four houses to the beach that was listed for $599K and it just sold for $500K ($125K per unit). I felt you could put about $150K into it for a pool and some cosmetic upgrades to the units and it would gross about $100K in rentals easily (that’s a 6.5 purchase price to gross annual rental ratio). Two new ones this month are 116 52nd St priced at $315K which is a 2BR/1.5Bath townhouse 100 yards to the beach with room for a pool. The other is a home built in 2000, 109 75th St priced at $599K, west of Gulf Drive, four houses to the beach, 3BR/2.5 Bath with peeks of the gulf. Both of these are currently very good rentals and have potential to improve the rental revenue. Those of you who may have missed out on Palm Isle Village should look at Island Garden Villas which are in the same price range ($299K to $479K). This six unit complex of 1 & 2 bedroom units are currently doing from $30K-$40K in rentals and are in “like new” condition. For a cost of ownership analysis on any of these properties just call or email me.
To summarize the island market, sales in September 2011 were below 2010 for only the second month this year but sale through September year-to-date are still up 18% over 2010 which was the highest sales year since 2005. Inventory remains at historical lows at 417, down from 434 last month and 522 in September 2010. Pending properties (properties under contract), although down a little from last month, are still strong at 49 and expected to remain in that range. Distressed properties also remain low at 5% of the inventory. Distressed properties have stayed in the 4%-8% range over the last year but the inventory has been declining significantly over the last year which has brought the number of properties also down significantly. Last year at this time there were 43 distressed properties for sale compared to 24 currently. Of the 30 properties sold in September, 17% were distressed compared to the 35 properties sold in September 2010, 43% were distressed. Last year-to-date of the 235 properties that were sold 29% were distressed. This year-to-date of the 278 properties sold only 15% were distressed. If you look on the charts on the next page you can see that the average and median sales prices for single family homes and condo’s continue to trend upward while duplexes are still flat. Also duplex sales are down but that’s primarily because over the last two years most of the conforming duplex properties were bought and torn down by the group building 2 land condos on them. Now there are fewer of them available so that accounts for the lower number of duplex sales and the fact that there are few number of duplex’s for sale on the island. As a matter of fact there are less duplex’s for sale (31) than lots (49).
Last month I provided some demographic information on Anna Maria Island and Longboat Key. I thought you would like to look at this a little further so I have added the chart to this month’s newsletter.
2010 – 12 MONTH YEAR END PRICES
Number Sold /Average Sales Price /2010 Median Sales Price 2010
HOMES 185 $512,596 $465,000
CONDOS 94 $292,077 $239,450
MULTI-FAMILY 23 $392,326 $357,500
LOTS 15 $406,727 $345,000
TOTAL 317
Last 12 months – October 1 ‘2010 – September 30 ’2011
SALES ON ANNA MARIA ISLAND
# Sold/ Lowest / Highest/ Avg. Price/ Sold Median Price Sold
HOMES 183 $65,000 $2,650,000 $567,100 $465,000
CONDOS 140 $ 22,500 $2,075,000 $299,406 $252,750
DUPLEXES 13 $170,000 $ 429,000 $345,185 $375,000
LOTS 27 $127,000 $1,350,000 $432,335 $400,000
TOTAL 363
JAN 1 – September 30 ’2011 SALES ON ANNA MARIA ISLAND
# Sold/ Lowest / Highest/ Avg. Price/ Sold Median Price Sold
HOMES 137 $65,000 $2,650,000 $579,394 $475,000
CONDOS 110 $ 22,500 $2,075,000 $303,141 $254,500
DUPLEXES 9 $237,000 $ 429,000 $345,378 $345,000
LOTS 22 $127,000 $1,350,000 $448,002 $400,000
TOTAL 278
JAN 1 – September 30 ’2010 SALES ON ANNA MARIA ISLAND
# Sold/ Lowest / Highest/ Avg. Price/ Sold Median Price Sold
HOMES 141 $154,000 $1,475,000 $505,162 $475,000
CONDOS 65 $29,000 $1,667,000 $292,060 $227,000
DUPLEXES 19 $202,500 $1,360,000 $402,342 $357,500
LOTS 10 $200,000 $ 850,000 $428,390 $372,500
TOTAL 235
Keep those calls and e-mails coming! We love hearing from you……Alan, Larry & Frank
SEPTEMBER Real Estate NEWSLETTER 2011-ALAN GALLETTO; Anna Maria Island, FL- Realtor
Sep 22nd
SEPTEMBER 2011 NEWSLETTER
Sales for the month of August 2011 were 25 (SF-14, Con-8, Dup-0 & Lot-3) down 20% compared to August 2010 at 31(SF-18, Con-10, Dup-2 & Lot-1). This is the first month this year we haven’t beat 2010. August 31, 2011 Y-T-D sales were 248(SF-120, Con-101, Dup-8 & Lot-19) up 24% over August 31, 2010 Y-T-D sales of 200(SF-121, Con-56, Dup-15 & Lot-8). Of the August 31, 2011 Y-T-D sales only 15% were distressed (bank owned or sort sales) compared to August 31, 2010 Y-T-D sales in which 27% were distressed. Pended properties (properties under contract) remain strong at 60(SF-36, Con-17, Dup-4 & Lot-3) which continues to project strong sales. Inventory on the island continue to be below historic levels at 434(SF-208, Con-149, Dup-27 & Lot-50) and 106 properties less than the same time last year when it was at 540. Of the 434 properties currently for sale on the island only 6% (26) are distressed (SF-10, Con-13, Dup-3 & Lot-0). In August Island Real Estate put 7 properties under contract (IRE having both sides of 4 of them), listed 11 properties and closed 4 properties (IRE having both sides of 1 of them).
Another of Frank, Larry & Al’s Great Buy’s went under contract since last month. The short sale at 100-A 52nd St went under contract and is scheduled to close mid October and was a great buy. The other short sale at 605 Baronet Lane is still available but it is getting a lot of showings and I don’t think it will last long. I just listed a six unit complex, Island Garden Village Condo, that are great second homes as well as great investment buy’s. This complex is right across the street from the beach (128 steps to the beach) just south of the Harrington House. They range in price from $299,000 to $479,000. Those of you who missed out on Palm Isle Village have a second chance to buy a comparable property. Go to www.gardenvillasales.com to check out all the units and see for your selves. For those of you who are looking for a beach cottage with a pool, close to the beach, in a quite part of Holmes Beach, 2916 Avenue E is still available. Also on the list is 4001 5th Avenue a newly built Tuscan home across from the beach, lushly landscaped and tiki pool that has a great rental history. The house across the street from it just sold for $950,000. All these properties are 10 ratio properties (purchase price/gross annual rental) which make them some of the best rentals on the island. Give me a call for pro-forma’s on any of these properties.
To summarize the island market although sales slowed in August they are still up 24% over 2010 which was a very good year. As you can see from the sales by year chart starting in 1993 to 2011 (projected) this year should be the best year in sales except for the peak year of 2005. The inventory remains at historical low levels at 434 compared to this time last year when it was at 540. Pending properties (properties under contract), which have been strong all year, also remain strong and that bodes well for continued strong sales into the end of the year. As you can see from the numbers and the charts, average and median sales prices for single family homes, condos and lots have strong upward trends. Only duplex’s seem to be still bumping along the bottom. Distressed properties also remain low currently at 6% of a low inventory that has continued to decline. The distribution of the sales this year-to date has skewed a little further to the high end with 88% of the sales under $700K and 12% over $700K up about 2% from 2010. To give you a little perspective Longboat Key had 319 property sales through August 31, 2011 and 77% were under $700K and 23% were over $700K. The 2010 sales on Longboat Key were 76% of the peak year of 2005 and sales on AMI in 2010 were 72% of 2005. While we are on the subject of Longboat Key here are some interesting comparisons with Anna Maria Island. Longboat Key has 8834 housing units vs AMI 7502 (AM-1538, HB-4202 & BB-1762). Longboat Key has a population of 7603 vs AMI 8248 (AM-1800, HB-4966 & BB-1482). Of LBK’s 8834 units 3928 are owner occupied, 352 rented and 4554 vacant. Of AMI’s 7502 units 2909 are occupied, 1329 rented and 3264 vacant. The average age on LBK is 68 on AMCity-55, HB-54 and BB-50 (all these figures are from the 2010 census).
For charts and statistics go to Al’s website http://AlanGalletto.com for the full newsletter. Ask Alan Galletto-THE Realtor for real estate on Anna Maria Island, FL. 941.232.2216
August 2011 Real Estate Newsletter Anna Maria Island, FL -ALAN GALLETTO, Realtor
Sep 4th
August 2011
Sales on the island continue at a strong pace in July with 27 properties sold (SF-16, Con-7, Dup-0 & Lot-4) a 50% increase over July 2010 at 18(SF-11, Con-4, Dup-2 & Lot-1). July 31, 2011 Y-T-D sales were 223 (SF-106, Con-93, Dup-8 & Lot-16) up 32% compared to July31, 2010 Y-T-D at 169(SF-103, Con-46, Dup-13 & Lot-7). Of the July31, 2011 Y-T-D sale of 223, 15% (34) were distressed properties compared to July31, 2010 Y-T-D sales of 169 in which 25% (43) were distressed properties. Pended properties (properties under contract) remain strong at 60 (SF-33, Con-22, Dup-4 & Lot-1) which means sales look to be strong at least into the next couple months. Inventory on the island continues to be below the average (450-500) and continues to move downward. It is currently at 429 (SF-208, Con-138, Dup-31 & Lot-52). Of the 429 properties currently for sale only 5% (21) are distressed properties (SF-9, Con-9, Dup-3 & Lot-0). In July Island Real Estate put 6 properties under contract (IRE having both sides of 2 of them), Listed 8 properties and closed 11 properties (IRE having both sides of 7 of them).
This month we have Frank, Larry & Al’s Best Buy’s. None of last month’s have gone under contract yet but looking at the low inventory there are very few properties currently for sale that are as good a buy. The two short sale properties 605 Baronet and 100-A 52nd street have been getting a lot of showings over the last month. The canal home is done very beachy and has a very nice floor plan. The gulf view property on 52nd St has a very good rental history that can be built on with very cosmetic changes to increase the rental. 100-A 52nd St. was just reduced by the owner to $695,000 and that would be the number the owner would accept to bring to the bank for a short sale. The great income/potential properties are ones that have a 10 or less ratio of price to gross rental income. The property at 100-A 52nd St is a 10 ratio and there are no properties that can beat that in that price range. The property at 2916 Avenue E is also a 10 ratio and is another great investment buy. For those of you who want to put some sweat equity into a property there are two properties that have the potential to show a good return after doing some major construction. Both are duplex’s and both would need to be gutted and then condo’d. Both are in great locations close to the beach and I think the numbers would work very well. If you have an interest give me a call and we can discuss the details. Also for you investors, I’ll be listing a 6 condo complex close to the beach in the $300K-$480K price range that do $30K-$40K gross rentals. They are similar to Palm Isle Village and very nicely done. Call me if you want one because I think they will go fast.
Since it’s the middle of hurricane season I thought it was time to publish my yearly map of Hurricane Landfalls on the coast of the US from 1950-2010. Most buyers come around to the question of whether the Sarasota/Bradenton area get many hurricanes. The answer is no: Only rarely has the Sarasota/Bradenton area been directly hit by a hurricane. The last one was in 1944 when one hit Northport (south of Sarasota) with 100mph winds. There have only been 9 hurricanes to make landfall on the west coast of Florida since 1899 (when the government started keeping records). As you can see from the NOAA chart the west coast of Florida is no more vulnerable than the NY/New England area of the country to get a direct hit and most of the coast of the US is far more vulnerable.
To summarize the island market, the number of sales are up 30% over 2010 which was a very good year and 2011 is shaping up to be the second best year for sales in the last 30 years. The inventory has been falling to historically low levels and if it continues downward will put upward pressure on prices (in August of 2010 the inventory was at 544). The distressed properties have remained at 5% of the inventory but the absolute number of distressed properties have fallen as the inventory has fallen. As you can see from the median & average sold chart, 2005-2011, single family homes and lot prices are trending up, condos have bottomed and duplex’s haven’t quite bottomed yet. In 2010 90% of the sales were under $700,000 and 10% over $700,000. This year to date those percentages are still holding true. The island market is very good compared to most other real estate markets in the US.
2010 – 12 MONTH YEAR END PRICES
Number Sold Average Sales Price 2010 Median Sales Price 2010
HOMES 185 $512,596 $465,000
CONDOS 94 $292,077 $239,450
MULTI-FAMILY 23 $392,326 $357,500
LOTS 15
_____ $406,727 $345,000
TOTAL 317
Last 12 months – August 1 ‘2010 – July 31 ’2011 SALES ON ANNA MARIA ISLAND
# Sold Lowest Highest Avg. Price Sold Median Price Sold
HOMES 190 $65,000 $2,650,000 $536,575 $445,750
CONDOS 142 $ 22,500 $1,060,000 $281,024 $250,000
DUPLEXES 18 $170,000 $ 480,000 $342,911 $357,500
LOTS 24
_____ $127,000 $1,000,050 $416,377 $400,000
TOTAL 374
JAN 1 – JULY 31 ’2011 SALES ON ANNA MARIA ISLAND
# Sold Lowest Highest Avg. Price Sold Median Price Sold
HOMES 106 $65,000 $2,650,000 $553,373 $470,000
CONDOS 93 $ 22,500 $1,060,000 $293,215 $255,000
DUPLEXES 8 $237,000 $ 429,000 $338,550 $332,500
LOTS 16
____ $127,000 $1,000,050 $415,691 $405,000
TOTAL 223
JAN 1 – JULY 31 ’2010 SALES ON ANNA MARIA ISLAND
# Sold Lowest Highest Avg. Price Sold Median Price Sold
HOMES 103 $154,000 $1,475,000 $508,138 $480,000
CONDOS 46 $80,000 $1,667,000 $324,324 $234,950
DUPLEXES 13 $202,500 $1,360,000 $427,654 $310,000
LOTS 7
____ $200,000 $ 850,000 $394,129 $320,000
TOTAL 169
Keep those calls and e-mails coming! We love hearing from you……
Alan, Frank & Larry
Call your Realtor; ALAN GALLETTO on Anna Maria Island! 941.232.2216
JULY 2011 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Jul 29th
JULY Newsletter 2011
Sales for June continue to remain strong at 30 (SF-13, Con-14, Dup-1 & Lot-2) a 40% increase over June of 2010 at 18(SF-12, Con-5, Dup-1 & Lot-0). June 30, 2011 Y-T-D sales were 194(SF-89, Con-85, Dup-8 & Lot-12) up 28% over the same period last year. Of the 194 sales 15% (30) were distressed compared to June 30, 2010 Y-T-D sales of 151 (SF-92, Con-42, Dup-11 & Lot-6) 25% (38) were distressed. Pended properties (properties under contract) continue to remain strong at 55 (SF-33, Con-21, Dup-1 & Lot-0). Inventory continues to move downward and is below the average for the island of 450-500 and currently at 442 (SF-219, Con-139, Dup-35 & Lot-49) and the distressed inventory remains at 5% (24) (SF-7, Con-12, Dup-5 & Lot-0). Island Real Estate put six properties under contract in June and closed eight properties, four of them Island Real Estate had both sides of the transaction.
This month’s Frank & Al’s Great Buys has two short sales at the top of the list. The gulf view two unit condo at 100-A 52nd St is pre-approved at $795,000 and is a very good rental doing about $70K of gross rental income. The other at 605 Baronet Lane at $549,000 is a nicely remodeled open floor plan canal home ideal for Florida living. If you want open water views for under one million dollars then 525 Key Royale Drive at $769,000 is a great buy. The Lot is worth $700,000 and you also get a 3 bedroom/3 bath pool home thrown in. If it’s rental income you want than check out 2916 Avenue E, 159 Crescent Dr and 4001 5th Avenue. These three properties all have a ratio of 10 or lower of purchase price/gross rental income which only the best investment properties on the island can do. Good rental properties are getting scarcer every month.
In summary, the island market continues to perform at record levels of sales transactions. As I mentioned before about 250 is the average sales for a year on the island. If you look at the sales from the peak years to the present (2003 – 325, 2004 – 378, 2005 – 438, 2006 – 138, 2007 – 199, 2008 – 211, 2009 – 233, 2010 – 316) it gives you a perspective on the healthy sales we are now enjoying. Sales for the 2nd quarter of 2011 hit 110 which is the first time since Q3 of 2005 that we had over 100 sales in a quarter and only the 4th time in twenty years. Inventory on the island dropped again to a six year low (442) and below the historic average inventory levels of 450-500. If it goes below 400 we will see a seller’s market again. The low inventory is reflected in the few properties that are available to buy in great locations. There are only 23 properties currently for sale west of gulf drive or in an equivalent location. At the same time distressed properties have remained at 5% of the inventory which means the absolute number of distressed properties has fallen significantly as the inventory has fallen. Of the 49 lots currently for sale on the island only 6 of them are non-gulf front and west of gulf drive and they range from $375K to $699K. As you can see from the graphs average and median sales prices continue to trend up which is also a byproduct of the low inventory. I’ve added a new chart this month which shows average and median sales prices for all four types of properties from 2005 through 2010. You can see that if you compare the end of 2010 with where we are six months into the year that the numbers are positive. As I mentioned last month when the economy shows some growth, the interest rates are going to shoot up quickly and at that point the combination of higher prices and higher interest rates are going to add hundreds of dollars to the mortgage of a property. I expect the inventory will continue to decline based on the rate at which properties are selling on the island. Looking at where we are in the number of sales year-to-date I estimate we will close the year very close to 400 properties sold in 2011. If that is the case than it will be only the second year that we saw 400 properties sold in a year in the history of the island market. The only other year was 2005 with 438 sold, the peak year for Real Estate on the island.
Ask Alan Galletto-THE Realtor for real estate on Anna Maria Island, FL. 941.232.2216
APRIL 2011 -Real Estate Newsletter ALAN GALLETTO, Anna Maria Island, FL Realtor
May 12th
Sales for March 2011 exceeded last year with 40 properties sold (SF-15, Con-17, Dup-4 & Lot-4) compared to March 2010 at (SF-22, Con-5, Dup-5 & Lot-3) considering 2010 was the best year in sales on the island since 2005 the peak year for sales. Sales for the first quarter 2011 were 78 (SF-33, Con-34, Dup-5 & Lot-6) versus first quarter 2010 at 76 (SF-44, Con-19, Dup-8 & Lot-5) again exceeding the pace of sale for 2010. Of the 40 sales in March 2011 15% (6) were distressed properties versus March 2010 29% (10) were distressed properties. As you can see below of the 78 sales for March 31, 2011 Y-T-D 14% (11) were distressed compared to the 76 sales for March 31, 2010 Y-T-D 29% (22) were distressed. Sales continue to look strong into the future with pended sales at 80 (SF-45, Con-32, Dup-1 & Lot-2) which is almost double the normal number of pended sales at any point in time. Of the pended sales 29% are distressed properties (23). We have reached another milestone with inventory for the first time in over 6 years falling below 500. Current inventory is at 496 (SF-245, Con-167, Dup-35 & Lot-49) and of that 7% is distressed inventory (SF-12, Con-16, Dup-4 & Lot-1). If you look at sales over the last 12 months at 322 and compare it to sale for the same 12 months a year ago which were 269 it demonstrates the strong sales we have been seeing. It looks like the strong sales will continue for 2011, well above the average of 250. The other thing we’re seeing is because of the strong sales the number of exceptional properties for sale are much smaller than in the past year. Properties that are in good locations and therefore great rentals are much smaller in number.
From last month’s Frank and Al’s Great Buy’s three more properties went under contract. The short sale, 100-B 52nd St, a two unit condo with gulf views ( 100-A 52nd St is still available), 3103 Avenue E a new construction land condo with gulf views and 111 Oak Avenue, the classic beach cottage circa 1926 west of gulf drive. All three went under contract within 5% of the asking price. We have two new listings on the list for this month, 458 63rd St. a 2bedroom 2 bath on Watson’s bayou with great open water views and 4001 5th Avenue a new Tuscan style home with 3 bedrooms 3 baths and very close to the beach with peaks of the gulf. The sleeper no one has figured out yet is 2916 Avenue E a 4 bedroom, 2 bath, totally remodeled with a pool, 4 houses to the beach that has a purchase price to yearly gross rental revenue (PP/YGRR) ratio of 10. Most properties on the island have a ratio of 14-16 (lower is better in this ratio) and there aren’t many properties that have a 10 ratio (10 years of gross rental revenue equals the purchase price). Another good buy are the 3 land condo’s left next to 3103 Avenue E that just went under contract. They are close to the beach with some gulf views and have the potential to have a purchase price to gross yearly rental revenue ratio of 10 because of their location. Also you should be looking at 100-A 52nd St next to the B unit that just went under contract. This is also a great rental with a current PP/YGRR of 11.5 and with cosmetic changes could be a 10 easily. Those of you seriously looking for a property should make a move now.
There was a very good article in the Herald Tribune Business Weekly ( Anna Maria Island has Antidote to Recession) about tourism and the economy on the barrier islands which points out how much better Anna Maria Island is doing than all the other barrier islands on the west coast. It describes how tourism is critical to the region’s economic recovery and how Anna Maria “gets it” and the rest of the region has been slow to catch on. Read the full article at: www.heraldtribune.com/article/20110418/article/110419652/2413/business
T summarize sales in March were strong as were sales for March, 31 2011 Y-T-D. Te inventory has dropped to the lowest level in 6 years at 496 into the normal range of 450-500 properties for sale. Pended properties are at a 6 year high of 80 which supports a continued record pace of sales for 2011. Prices seem to be down to a level that is spurring record demand and that is good for the island market.
MARCH 2011 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Mar 26th
MARCH NEWSLETTER 2011
Sales for February were a little behind last year at 22 (SF-10, Con-11, Dup-0 & Lot-1) versus 2010 which were 27 (SF-14, Con-9, Dup-3 & Lot-1) but still a respectable number of sales. Of the 22 properties sold in February only 4 were distressed properties (SF-3, Con-1) versus 2010 where 10 of the 27 sold were distressed (SF-5, Con-4, Dup-1). Year-to-Date Sales through Feb 28, 2011 are at 38 (SF-18, Con-17, Dup-1 & Lot-2) compared to the same period in 2010 at 41 (SF-22, Con-14, Dup-3 & Lot-2). Sales continue to look strong with pended properties (properties under contract) at 60 (SF-28, Con-25, Dup-4 & Lot-3). Pended properties have been in the 50-65 range for the past nine months which is why we’re seeing such strong sales. The inventory has been lingering at just over 500 with current inventory at 518 (SF-258, Con-182, Dup-31 & Lot-47). Of the current inventory 33 are distressed properties (SF-16, Con-25, Dup-4 & Lot-3) or about 6% of the inventory. If you look at sales for the last 12 months at 319 versus the previous 12 months at 251 it demonstrates how strong the sales have been in the past year compared to past years (2010-317, 2009-233, 2008-211, 2007-199, 2006-138 and the peak year 2005-438). You can see how the number of sales has been building since 2005. As I mentioned in past newsletters the average number of yearly sales on the island is about 250.
It was another good month for Frank and Al’s Great Buy’s. From last month’s list I put two properties under contract 787 Jacaranda and 2915 Avenue E, both great buys and both great rentals. Also a short sale, 100-A 52nd St was on last month’s list and although it did not go under contract I did put 100-B 52nd St. under contract. If you want another chance than 100-A 52nd St. is still available. This month’s list has some excellent buys. 3103 Avenue E, listed at $669K, is a new land condo with gulf views and five houses from the beach and is an excellent buy and would be an excellent rental. If you’re looking for west of gulf drive in the city of Anna Maria, 111 Oak listed at $699K is a circa 1926 classic historical cottage with a lot of charm and by adding a pool and some cosmetic updates would also be a great rental. With building costs still at historical lows (you can build for $150/sq ft what cost at peak $350/sq ft) the two lots at Banyan Tree Estates, three properties from the beach listed at $699K, allows you to build your dream home in a great location. Now is the time to build if you are considering it because it looks like material costs are going to rise in the future. Email or call me for more information on these or any other properties.
Any of you who have been on the island in the last couple months know firsthand that this year has been a great year for rentals. We were up about 6% in the winter months, mainly due to increased rental rates because demand is always high, but the summer months are up 50%. That increase is due primarily to increased demand and that demand caused many renters not to get there first choices last summer and are booking earlier this year. The standardized linen service is off and running and is going relatively well. Most of the initial comments have been positive and we’re working out the few glitches we have stumbled upon. One thing it has done is move some responsibility regarding linens from the owners to Island Real Estate which should make it much easier on the owners.
To summarize, sales into February continue to be strong and with inventory at traditional levels and pended properties strong, it seems that it will continue into the near future. Island Real Estate sales have been strong as well with 5 closings in February and 22 properties put under contract. Since we are only two months into the year there is not enough data to change the trend charts. Most of the graphs use quarterly or yearly data so by next month when we have a full quarter of data then we can get a better picture of the current trends.
Ask Alan -THE Realtor for other great real estate on Anna Maria Island, FL.
Call Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate.
February 2011 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Mar 2nd
FEBRUARY NEWSLETTER 2011
Rolling into 2011 sales continued at the record pace of 2010. January sales were 16 (SF-8, Con-6, Dup-1 & Lot-1) compared to January of 2010 with sales of 14 (SF-8, Con-5, Dup-0 & Lot-1). Of the 16 sales in January 2011, one was a distressed property compared to 2 of 14 in January of 2010. Sales looking forward are strong with Pending sales (properties under contract) at 62 (SF-31, Con-20, Dup-4 & Lot-7) compared to last month which was at 38. With 16 properties closed last month that means 40 more properties were put under contract over the last month. The current inventory is at 517 (SF-257, Con-186, Dup-29 & Lot-45) of which 37 (SF-14, Con-19, Dup-4 & Lot-0) are distressed properties or 7% of the inventory. The inventory has been holding at around the 517 mark for the past several months after coming down from a high of almost 1,000 in 2006 to in the 500’s in 2010. If you look below at the number of sales in the last 12 months (322) compared to the previous 12 months (233) it shows you how sales have picked up for 2010 and continues very strong into 2011.
Thank you for responding to my recommendations in Frank & Al’s Great Buy’s. I put the last three Palm Isle Village units (3204, 3201 & 3205) under contract since the last newsletter. They were all my buyers and will all close by March 3rd. They were such good buy’s that two of my previous customers in Palm Isle Village bought their second unit. In this month’s Frank & Al’s Great Buy’s there are some very good properties and several very close to the beach with great rental income. If you feel like you got left out at Palm Isle Village there is a unit at Starfish Beach, 2915 Ave E (Unit 1) 2BR/2bath at $359K. Starfish Beach was built by the same developer who developed Palm Isle Village. They look the same on the outside and inside except that there are only four units with a common pool. If you are looking for a lot close to the beach to build your dream home then take a look at Banyan Tree Estates. There are two lots that are two houses from the beach in this deed restricted subdivision Listed at $699K each. I sold the two lots one house from the beach the end of last year for $750K and $725K. Both of these lots are larger than conforming and have very large building footprints. If you’re thinking of buying in the next couple of years now is the time.
Island Real Estate is excited to be sending Sybille Petereit to the ITB Berlin show located in Berlin, Germany in early March. The week long trade conference is one of the largest tourism shows in the world and Island Real Estate will have a chance to connect with leisure tour operators, consumers, future travel groups, etc. Sybille has done fantastic job marketing to Germans to visit Anna Maria Island and stay in our vacation rentals. We have already seen several of those visitors show interest in purchasing real estate on Anna Maria Island. We expect Sybille’s attendance to the ITB Berlin show to further enhance our already extensive direct marketing campaign to Germans. Great stuff for you current and future property owners.
Also, for you property owners, Island Real Estate vacation rentals has just implemented standardized linens. This past year Larry Chatt has focused on the satisfaction of our vacation rental guests. Larry hired a consultant that has supported hundreds of vacation rental companies and standard linens were identified as a huge win for guest and owner satisfaction. The operations team has been busy the last several months planning for the implementation of standard linens. Island has rented a new location to store the more than 5 pallets of linens. Operations tells me they are cautiously optimistic and we know there will be a few stumbles and falls but in a few months they hope to begin to recruit the remainder of our owners by communicating actual benefits seen by guests and current owners.
To summarize, sales into January 2011 continue to build on the great year we had in 2010 of 317 properties sold. The inventory has stayed down and is hovering just above normal levels. Pended properties (properties under contract) are at seasonal highs, which bodes well for continued sales growth. Demand, as demonstrated by the strong sales numbers, is at all time high’s and with inventories at normal levels we are seeing multiple offers again. Especially on properties with a gross rental income to price ratio of twelve or lower. The Anna Maria market is looking very healthy.
Alan Galletto
6101 Marina Drive
