Real Estate Broker/Associate (941) 232-2216
Monthly News Letter
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.
January 2011 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Jan 15th
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 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Dec 27th
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.
November 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Dec 14th
NOVEMBER NEWSLETTER 2010
The numbers for October reinforces the fact that sales on the island continue to be very strong. Sales for October 2010 were 21 (SF-10, Con-8, Dup-1 & Lot-2) up 7% compared to October 2009 at 19 (SF-10, Con-8, Dup-1 & Lot-0). Year-to-date sales through October 31, 2010 continues to stay well ahead of last year up 36% at 254 (SF-149, Con-73, Dup-20 & Lot-12) compared to October 31, 2009 Y-T-D at 187 (SF-97, Con-72, Dup-7 & Lot-11). Single family and duplex sales continue to account for the increase in sales over last year and at the pace we’re going we should hit sales in 2010 on the island of over 300 properties. Of the year-to-date sales this year, 29% of the sales were distressed properties (short sales or bank owned). Pended sales also continue to be strong at 57 (SF-28, Con-21, Dup-4 & Lot-4) up from last month’s 50 which bodes well for continued strong sales volume. Island Real Estate also had strong numbers with 7 new contracts in October and 7 closings 3 of them in-house (no other broker involved).
Inventory on the island has leveled off just above 500 with it currently at 521 (SF-258, Con-178, Dup-34 & Lot-51) compared to 522 last month. The inventory is sitting just above the normal range of 450-500 properties for sale at any one time. Distressed properties (short sales and bank owned) also continue to decline and are currently at 37 (SF-18, Con-13, Dup-4 & Lot-2) down from 43 last month, 44 in September and 53 in August. Distressed properties on the island are currently 7% of the inventory and about 20% of the sales. To put that in perspective distressed properties in Bradenton are 51% of the sales Year-to-Date and 66% of the single family homes. You can see that the island market is in very good shape compared to the mainland market.
We have highlighted the Palm Isle Village units ( www.palmislevillage.com ) as great buys over the last few months with a price to rental ratio of 8, 9 and 10 (lower is better in this ratio most properties that are good rentals on the island are in the 12-16 ratio). Within the last two weeks I put two more units under contract at PIV, 3215 Gulf Drive (1 bedroom/1.5 baths, 730 sq ft) listed at $349K and 3209 Gulf Drive (2Bedroom/2 bath 1,480 sq ft) listed at $499K. They are cash deals closing in early December and that will be 7 out of the 11 units sold. If you have any interest in a great second home rental property there are 4 units left. Frank & Al’s Great Buy’s are as follows:; if you’re looking for a single family second home which would rent well then 115 Palm which is west of gulf drive is a great deal at $499,000. The lot is worth $400,000 and the carport could be easily made into another bedroom & bath to make a 3 bedroom/2 bath west of gulf drive. If you put in a pool this property could gross around $50,000 in rentals per year. If you want to be in the City of Anna Maria 787 Jacaranda listed at $599,000 is a great buy. It’s a 3BR/2bath with an elevator and room for a pool and being actually 3 houses from the Gulf it would be a great rental. Check out the rest of the great deals below, if you don’t see something you like call me and tell me what you want.
Interest rates continue to be at all time lows with 30 year conforming loans up to $417,000 at 4.3% and 15 year fixed conforming loans at 3.9%. I think that interest rates are poised to starting moving up so if you want to buy property and are going to use financing than now is the time to buy to minimize your cost of owning a property.
To summarize, the Anna Maria Island market looks pretty healthy especially as compared to other markets in Florida. Property values are down from the peak about 35%-40% but that adjustment had to happen in order for the market to stabilize. Sales have increased steadily every year since the end of 2005 when the market hit the wall and this year we will see 300 plus properties sold which is well above the normal sales of 250 and the most properties sold on the island since the peak in 2005. Single family average and median home sales are trending up while condos are down from last year but stabilizing, taking the biggest hit as far as values are concerned. Inventory has stabilized and with the record number of transactions the island market is very healthy and poised to begin increasing in value. We look forward to helping you with your Real Estate needs.
OCTOBER 2010 Real Estate NEWSLETTER -Alan Galletto, Realtor; Anna Maria Island, FL
Oct 9th
Sales on the island continue to be very strong with September sales up 55% at 34 (SF-20, Con-8, Dup-4 & Lot-2) over September 2009 at 22 (SF-9, Con-11, Dup-0 & Lot-2). Year-to-date sales through September 30, 2010 continue to stay well ahead of last year up 38% at 232 (SF-139, Con-64, Dup-19 & Lot-10) compared to September 30,2009 Y-T-D at 168 (SF-87, Con-64, Dup-6 & Lot-11). The increased sales continue to be related to the increase in single family and duplex sales this year versus last year. Even if we just match 2009 fourth quarter sales, we will end up the year at 298 properties sold. Pended sales are at 50 (SF-22, Con-23, Dup-3 & Lot-2), although down from last month’s 66, they are still well above average and my best guess is that sales for 2010 will be above 300 for the year. Island Real Estate sales continue to be strong with 10 properties put under contract and 11 properties closed in September.
Inventory on the island continues to drop with it currently at 522 (SF-254, Con-180, Dup-37 & Lot-51) compared to 540 last month and 544 in August. We’re getting close to the magical number of 500 under which supply and demand are in relative balance and inventory is at about 18 months supply at the average sales volume. Distressed properties (short sales & bank owned) are down to 43 currently (SF-18, Con-17, Dup-5 & Lot-3) compared to 44 last month and 53 in August. Distressed properties are running 28% (SF-34, Con-20, Dup-10 & Lot-1 = 65) of the September 30, 2010 Year-to-Date sales (232) on the island. Nationally 40% of the sales are distressed sales, in Manatee/Sarasota 50% of the sales are distressed and on the island 28% this year’s sales have been distressed.
Another one of Frank & Al’s Great Buy’s went under contract (606 Key Royale Drive listed at $319,000), a definite fixer upper on the canal. Just about all of the other properties are great buys for their location, rental capability and price. A couple that stand out are, 3302 6th Avenue, a four-plex listed at $599,000 three houses from the beach with plenty of room for a pool which would make this a dynamite seasonal rental. Another is 704 Rose St., listed at $429,000 a 2bedroom/2 bath in the north end of the island, one and a half blocks to the beach and with a pool, it would be a great rental property. If you want to be west of gulf drive then 115 Palm Ave. listed at $499,000 is for you. There are currently 10 properties for sale west of Gulf Drive that are not direct gulf fronts and 115 Palm is the lowest priced one. In the last 12 months 8 properties have sold west of Gulf Drive and all between $500K and $800K. The Gulf View Short Sale Townhouse (3603 4th Ave) is another great buy. Listed at $799,000 it’s a lot of house in a great location with partial Gulf Views, Pool, elevator and 2,376 sq ft of living area. Being a short sale who knows what the bank will take….make an offer.
Interest rates, although at all time low’s, continue to creep even lower with 30 year fixed rate mortgages up to $417,000 for first and second homes at 4.21%. To put in perspective how that stacks up to historical rates take a look at the historical mortgage rate graphs at the end of this newsletter which shows rates back to 1963. Based on the WSJ, it looks like the Fed is going to allow some inflation to try to spur economic growth. If they do, interest rates are going to jump up. With property prices as low as they are going to go and the mortgage rates at the lowest you are going to see in our lifetime this is the time for you buyer’s to pull the trigger.
Speaking of good deals, the current news on bank foreclosures is that three large banks, Bank of America included, has stopped foreclosures in 23 States because they might not have followed lawful procedures. The Federal Government is seriously considering stopping all foreclosures in the US due to questions on ownership of some of these properties because the mortgages have been sold so many times. If that happens, the banks will have to sit on their foreclosed properties for some indefinite period of time. A consequence of that may be banks moving much quicker and aggressively on short sales since foreclosing will only increase their inventory of properties that they can’t sell.
Many clients have asked about the demographics of the Manatee County area so I have included them at the end of the newsletter. It includes population, age and wage information on the cities in Manatee County including the three cities on Anna Maria Island. Hope you enjoy the newsletter.
SEPTEMBER 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Sep 18th
SEPTEMBER NEWSLETTER 2010
Sales for the month of August continue to be strong up 26% from last year with 29 (SF-16, Con-10, Dup-2 & Lot-1) properties sold compared to 23 (SF-15, Con-6, Dup-0 & Lot-2) in 2009. Year-to-date sales through August 31, 2010 also continue to be strong up 36% at 198 (SF-119, Con-56, Dup-15 & Lot-8) compared to August 31, 2009 Year-to date at 146 (SF-78, Con-53, Dup-6 & Lot-9). As you can see from the numbers, sales of single family homes and duplex’s are up significantly over last year where as condos and lots are about the same. Sales this year have significantly exceeded 2009 almost every month. If we only matched 2009 sales for the remaining months of the year, total sales for 2010 would come in at 286 well above the average total sales on the island of 250. Based on where we are and the continued strong number of pended sales of 66 (SF-33, Con-21, Dup-8 & Lot-4), I believe total sales for 2010 will come in very close to 300. If that’s the case it will be a very strong sales year with the most sales since 2005. Remembering that 2003 to 2005 were the peak sales years on the island, total sales from 2003 to 2009 were 2003-325, 2004-378, 2005-438, 2006-138, 2007-199, 2008-211, & 2009-234. In August Island Real Estate put 8 properties under contract and closed 5 properties.
Inventory dropped a little from last month’s 544 to 540 (SF-262, Con-186, Dup-36, Lot-56). Again, when the inventory level gets below 500 then we should see a significant rise in average and median property values. Distressed properties (bank owned & short sales) have dropped down from July’s 53 to 44 in August (SF-19, Con-18, Dup-4 & Lot-3). Distressed property sales year-to-date has been about 25% (SF-28, Con-15, Dup-7 & Lot-1 = 51) of the total sales year-to-date (198) on the island.
Two of Frank & Al’s Great Buy’s have been reduced from last month which make them even better buy’s. 787 Jacaranda a 3 bedroom/2 bath elevated, totally remodeled home only steps to the beach has been reduced to $599,000. The North Point Harbor canal lot at 718 Key Royale Drive has been reduced to $379,000. A great buy that just came on the market is 3302 6th Ave, a 4-plex with four 2 bedroom/2 bath units’ only steps to the beach. This property has plenty of room for a pool and with a pool and 30% down the revenue it could produce would cover all operating expenses and debt service and produce positive cash flow. This would be a great investment property for someone. There are not many 4-plex’s on the island and even less that are close enough to the beach to cash flow.
Interest rates are at their lowest in 40 years with rates as low as 4.4% for a 30 year fixed for a first or second home mortgage up to $417,000. Financing for condos in stable associations, which include most of the condo associations on the island, is available with 25% down. Jumbo mortgages ( above $417,000) are readily available at 1.5– 2 points above the regular first or second home rate. If your planning on buying, now’s the time.
For those of you who have a rental property or are considering buying one, this year has again been very good for rentals. By this time of year 80%-90% of the rental income is in and the last quarter is pretty quite except for the holiday weekends. This is the time of the year that the locals enjoy because it is a little quieter. If you plan to visit the island this fall the rental rates this time of the year are the lowest so call my rental girls to book.
Projected assessments for 2010 came out last month and it looks like in general taxes will come down a just a little more this year. Assessments now are currently pretty close to market value and unless budgets increase will stay pretty close to market value going forward.
In summary, sales on the island continue to be strong and still on track to be significantly higher than last year. Sales continue to be skewed to the low end with 90% less than $700K which is underestimating a little the average and median sales price compared to past years.
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.
August 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Sep 8th
Sales continue to run above average with sales for July at 18 (SF-11, Con-4, Dup-2 & Lot-1) up from last year’s 16 (SF-9, Con-6, Dup-0 & Lot-1). July 2010 Y-T-D sales are up 39% at 169 (SF-103, Con-46, Dup-13 & Lot-7) over July 2009 Y-T-D at 123 (SF-63, Con-47, Dup-6 & Lot-7). As you can see from the numbers the main reason for the big increase in sales this year is the increase in single family sales. The other three types of properties sales are running about even with last year. The sales numbers are still on track to exceed the average of 250 this year as demonstrated by the sales for the last 12 months at 280 and the continued strong pending sales (properties under contract) at 63 (SF-33, Con-20, Dup-7 & Lot-3). In July Island Real Estate put 4 properties under contract and closed 5 properties.
Inventory has remained stable, in the mid 500’s, since the first of the year and is currently at 544 (SF-266, Con-189, Dup-38 & Lot-51). Again the normal inventory level on the island is between 450 and 500 properties for sale so we continue to hover just above the norm. When the inventory drops below 500 and stays in that range or lower than I believe we will begin to see a significant increase in average and median sales prices on the island. Distressed properties (bank owned & short sales) have bumped up a little over last month and are currently at 53 (SF-19, Con-25, Dup-5 & Lot-4). The increase was due primarily to the increase in condos from 17 to 25. The mainland, in comparison, is still in the 30% plus range of inventory of distressed properties. The number of sales on the mainland are up about 13% over the same period last year but median sale prices are continuing to drop, down 12% over last year.
Well two more of Frank & Al
The Gulf oil spill seems to be plugged so that’s good news for the whole Gulf region. We here in southwest Florida have not seen any oil and don’t expect to see any. The beaches are still there normal white sugar sand texture and the waters blue/green clear.
In summary, the number of sales on the island continue to be strong up significantly over last year and look to continue in that direction based on the continued strong number of pended sales. The distribution of sales continues to be skewed to the low end with 90% of sales less than $700,000 and 5% over $1 million. Average and median sales prices have not increased significantly and probably won’t until the inventory drops below 500. There are still some very good deals out there on properties in good locations that would be great rentals for second home buyers but they are becoming less every day. With 30 year fixed interest rates at 4.74% down from 5.42% last year the numbers aren’t going to work any better than right now. If you’re planning on buying a property in the next year now is the time to buy something while there still are good buys in great locations.
JULY 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Jul 22nd
July 2010
Sales for the month of June were 17 (SF-12, Con-4, Dup-1 & Lot-0) down from last year’s 22 (SF-9, Con-10, Dup-0 & Lot-3) and the lowest number of sales in a month since January. Still sales for June 2010 Y-T-D are up 40% at 150 (SF-92, Con-41, Dup-11 & Lot-6) over June 2009 Y-T-D at 107 (SF-54, Con-41, Dup-6 & Lot-6). The number of sales transactions on the island continues to increase. At year end 2009 there were 234 properties sold, in the last 12 months there were 277 properties sold and the current year to date numbers are running well ahead of that rate with 150 properties sold in the first 6 months of 2010.
Island Real Estate put 3 properties under contract and closed 8 properties in June. As you can see from the charts below, comparing the end of 2009 sales prices to the last 12 months and the current year to date, average and median sales prices are ticking up. Even though sales for June were below average, pending sales (properties under contract) continue to be strong with 67 properties currently pended (SF-33, Con-21, Dup-9 & Lot-4). Inventory on the island, which seems to have stabilized in the mid 500’s over the last 6 months, is currently at 548. I expect that this will continue down to 500 by the end of the year. Distressed properties (bank owned and short sales) are currently at 41 (SF-16, Con-17, Dup-6 & Lot-2) a little down from last month’s 47. Distressed properties on the island continue to be in the 8% of inventory range.
The Gulf Oil spill has caused a few buyers to hold off from pulling the trigger on sales but has not had any significant effect on sales on the island. I’ve included some graphs from N.O.A.A. which shows, because of the loop current, that the gulf coast from Tampa southward has a less than 1% chance of having oil show up on the beaches. Unfortunately they are projecting an 80% chance of the oil hitting the Keys and the east coast of Florida from Miami to West Palm. I’ve also included a link to the Ocean Circulation Group of The University of South Florida which updates and projects the gulf spill circulation through the gulf every couple days: http://ocg6.marine.usf.edu/~liu/Drifters/latest_rtofs.htm . You can see the effects of the loop current on the Deep Horizon Oil Spill, under “Animation Control” click on play. We’ll keep our fingers crossed that all of the projections for our area are correct and we don’t see any oil.
Another one of Frank & Al’s Great Buys was snapped up this month. The condo at 3702 6th Ave #4 listed at $259,000 was put under contract. There are still a few great buys left on the island. If you’re looking for a pool home in Anna Maria that has excellent rentals than 710 Gladiolus St. listed at $699,000 is the property for you. This 3 bedroom/3 bath pool home is doing $60,000 a year in gross rentals. Do you want to build a custom canal home in quite Key Royale. You can buy the lowest priced canal lot on the island at 718 Key Royale Drive listed at $399,000 and it comes with a set of plans for a 3,300 sq ft home. The lowest priced existing canal home currently on the market located at 606 Key Royale Drive is listed at $365,000 and is ready to be gutted and customized to your specifications. Check out the great Gulf Front Buy at 721 North Shore Drive for $1,475,000. You can’t get on the Gulf for that price. I’m listing a West of Gulf Drive property at 115 Palm Ave for $499,000 this week. You can get a jump on everyone else by calling me right now before it hits MLS.
In summary the island market is still very good as far as numbers of sales are concerned. The distribution of those sales have been consistently 90% under $700K and 10% over $700K for the past 18 months. Buyers are snapping up property at the low end of the market but the high end has been slower than normal. The traditional distribution has been 80% under $700K and 20% over 700K. The skewing of the sales to the low end of the market has put downward pressure on average and median sales prices so the fact that we’re seeing a slight tick up on those prices is a good sign. The number of pended sales are well above normal so we should continue to see strong unit sales continue this year and if so, this will be the strongest sales year since 2005.
JUNE 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
Jun 23rd
May continues the strong sales performance we have been seeing since mid 2009. There were 28 properties sold in May (SF-20, Con- 6, Dup- 1 & Lot- 1) compared to 23 (SF- 11, Con- 10, Dup- 2 & Lot- 0) in 2009. Island Real Estate sales continue to be strong in May with 12 properties put under contract and 12 closings in May (10 of them on the island 36% of the island sales for May). As you can see from the charts below Y-T-D through May 31, 2010 sales are up 64% over the same period in 2009. Average and median sales prices are still trending up for single family and multi-family properties and condos are still down due mostly to the skew of sales so far this year to the low end. The number of properties sold in the last 12 months is up again to 282 which reflects the strong sales in the second half of 2009 and continuing into the first half of 2010. If this continues we will do well over the average of 250 sales per year on the island. Pending sales (properties under contract) continue to be strong with 66 properties ( SF-38, Con- 20, Dup- 4 & Lot- 4) currently pended.
Inventory which was at 543 last month has stayed flat at 549 (SF- 261, Con- 192, Dup- 44 & Lot- 52). Over the past 10 months it has fluctuated between 498 and 575. The continued strong pended sales will put downward pressure on the inventory. Distressed properties (short sales and bank owned) are currently at 47, about the same as this time last month. Distressed sales continue to be about 8% of the inventory and 20% of the sales.
There continues to be some great opportunities out there for some great buys. The special email that I sent out a few weeks ago on a short sale at Starfish Beach condo (a 4 unit condo complex like Palm Isle Village) we have already put under contract this week. Those good buys go fast. There are some great opportunities on Frank & Al’s Great Buys this month. For those looking to build a new canal home 718 Key Royale Dr. is a terrific buy at $399,000. This is the lowest price water front lot for sale on the island. There is also a set of plans for a 3,300 sq ft home that goes along with it. With building cost down to $100-$125/sq ft (compared to $300/sq ft at the peak) now is the time to build that custom canal home. For those of you looking for a 2bedroom/2 bath condo close to the beach, 3702 6th Ave unit 4 is a great buy at $259,000. It’s a block to the beach and with a new kitchen, two large porches you can’t buy anything this close to the beach at this price. On the luxury end 108 36th St the new condo unit at Palm Gables listed at $1,490,000 was custom built for this owner and has never been rented. This unit has great panoramic gulf views and would be a terrific rental. Last but not least 200 & 202 38th St., which is a short sale, is a good buy at the list price but who knows what the bank will accept. I think a good offer to the bank for both units would be $1.2million to 1.3million which at $1.3 million would be a steal ($650K a unit) for these 3,100 & 2,500 square foot units. They currently do $55K and $65K in rentals and with a little “fluffing” and “buffing” (spending under $10K) they could easily do $70K and $80K. Palm Isle Village is still the best buy on the island for one and two bedroom condos close to the beach. With 25% down, they just about break even after tax, and there is nothing else on the island that matches this investment.
As I stated last month, the number of sales transactions are significantly up but the distribution of sales are skewed to the low end with 90% of the sales under $700K. In spite of this the average and median sales prices are trending up. The sales by quarter chart will not be updated until the end of June but with 56 properties sold in April and May, the Q2-2010 trend will be significantly up. In summary the number of sales on the island is significantly up while sales prices are down about 35% from the peak in 2006. Inventory is settling down to historical norms and distressed properties are stable and low. Sales for May were up 22% from last year and Y-T-D sales through May of this year were up 55% over last year.
May 2010 Real Estate Newsletter ALAN GALLETTO, Realtor Anna Maria Island, FL.
May 19th
April sales continues the strong sales performance for 2010 and the sales activity remains very strong here on Anna MAria Island, FL. There were 28 properties sold in April (SF-16, Con-11, Dup-1 & Lots-0) compared to 21 (SF-10,Con-9,Dup-1 & Lot-1) in 2009. Island Real Estate sales continue to be strong with 10 properties put under contract and 9 closings in April (32% of the closing on the island). Since January 1st I, Alan Galletto, have personally closed over $6,000,000 worth of property. From the charts below Y-T-D through April 30, 2010 sales are up 66% over the same period in 2009. If you look at the Year end 2009 average & median sales prices and compare them to the previous 12 months and April 30, 2010 average & median sales prices you can see that single family homes, duplex’s & lots are trending up and condos have leveled off. If this trend continues we will see some appreciation in properties by the end of the year. Again, this month the properties sold in the last 12 months are up to 275 compared to the previous 12 months of 267. This is also a very good trend and shows sales on Anna Maria Island, FL. continuing to increase. Another good sign in the market is pending sales (properties under contract) is very strong at 71 (SF-46, Con-18, Dup-3 & Lot-4). Last month at this time there were 63 properties pended. Inventory, which last month had bumped up to 567, has dropped down to 543. Over the last 9 months it has been fluctuating between 498 and 575. As I said above, sales look to continue to be strong over the next several months which will continue to pull the inventory down. Distressed properties (short sales & bank owned) last month dropped to 33 and this month bumped up to 43. Distressed properties on Anna Maria Island, FL continue to be low at 6%-8% of the inventory compared to 26% on the mainland.
For another consecutive month one of Frank Davis & Alan Galletto’s Great Buys has gone under contract. The canal home at 521 69th St. Holmes Beach on Anna MAria FL. went under contract and is due to close the end of June. This month we still have 5806 Imperiore, Holmes BEach on Anna Maria, FL. listed at $389,000 a 2 bedroom/2 bath totally remodeled and turnkey furnished. For those of you looking for an entry level condo 100 yards to the beach check out 3702 6th Ave. #4 Holmeas Beach, Anna Maria FL. now listed at $259,000. You can’t get this close to the beach for this price. We still have our luxury picks 108 36th St. Holmes Beach on Anna Maria Island, FL. a beautifully appointed condo in Palm Gables listed at $1,490,000. You have to see this property to appreciate it. Also please check out 200/202 38th St. Holmes BEach on Anna Maria Island, FL. ($895K & $775K) a two unit gulf view condo well under market for units with Gulf Views.
Check my web site www.AlanGalletto.com to look at the average and median sales prices at the end of 2009 and compare them to the last 12– 75% of the total sales were months sales and the 2010 year-to-date sales you can see that all four types of properties average & median sales prices are trending up. That, along with a continued increase in sales volume, are all good signs for the island market. What is also interesting is that the average & median sales prices as well as sales volume are up and at the same time high end sales are only a small fraction of the total sales. In 2006 – 56% of the total sales were under $700K. In 2007- 78% of the total sales were under $700K. In 2008 under $700K. In 2009 – 90% of the total sales were under $700K. In 2010 Y-T-D through April – 92% of the total sales were under $700K. You can see that although the number of sales are up, a smaller proportion of the total sales are over $700K than in previous years. That would understate the increase in average and median sales prices. The sales by quarter chart shows just the first quarter of 2010 until we get the full 2nd quarter numbers but based on Aprils sales and the strong pended contracts I would expect the sales to continue trending up.
Next month begins hurricane season (June 1 – November 30) so I’ve included an updated map of all the US hurricane landfalls from 1950 – 2009 which shows that the Florida west coast is less vulnerable than most of the US coastline.
Keep those calls and e-mails coming! We love hearing from you……Alan & Frank
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.
Alan Galletto
6101 Marina Drive
