Real Estate Broker/Associate (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.
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.
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Dec 23rd
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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.
Condo 2 BR/2BA :: $215,000-SOLD;601 Gulf Dr. #206 Gulf Watch, Anna Maria Island, FL
Sep 29th
View from front entrance
View from front entrance
Enjoy being steps away from the beautiful Gulf of Mexico or Sarasota Bay/Intracoastal waterways. This spacious, end unit, second story Island Condo has views of both gulf & bay, 2 bedrooms – 2 baths, 1282 square ft. turnkey furnished, intimate breakfast nook, separate dining area and washer dryer in the unit. Well maintained complex with heated pool and steps to the beach. The beach is private and land on gulf side of Gulf Dr is deeded to condos.
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.
Porch View
Alan Galletto
6101 Marina Drive
