JUNE NEWSLETTER 2012
May 2012 brought us another month of booming sales at 52 (SF-31, Con-15, Dup-3 & Lot-3) up 49% over May 2011 at 35 (SF-15, Con-16, Dup-1 & Lot-3). We haven’t had monthly sales in the 50’s since 2004 & 2005 which were years that annual sales were over 400 properties. May 31, Year-to-Date Sales for 2012 were 191 (SF-110, Con-57, Dup-12 & Lot-12) up 18% over May 31 2011 Y-T-D sales at 162 (SF-75, Con-70, Dup-7 & Lot-10). Of the May 31, 2012 Y-T-D sales 12% were distressed (short sales or bank owned) (SF-10, Con-10, Dup-2 & Lot-0) versus 15% of the May 31, 2011 Y-T-D sales were distressed (SF-9, Con-11, Dup-3 & Lot-1). Sales for the last 12 months were 369 (SF-209, Con-113, Dup-21 & Lot-26) compared to the previous 12 months of 348 (SF-182, Con-127, Dup-20 & Lot-19). Pended properties (properties under contract) remain at all time high levels at 84 (SF-42, Con-26, Dup-9 & Lot-7) which means future months sales are going to remain strong. Inventory is up a little from last month at 334 (SF-153, Con-121, Dup-19 & Lot-41) compared to 319 last month but still remains at historical lows. The inventory at this time last year was at 452 properties for sale. In April of this year it was 369, March 2012 – 403, February 2012 – 412 and January 2012 – 427.
Two more of Frank, Larry’s & Al’s Great Buys were put under contract since the last news letter. A west of gulf drive property at 109 75th St listed at $569,900 and last month’s best buy on the island at 319 64th St listed at $454,000 a townhouse condo at Island Walk. Replacing them this month are two equally great properties, 115 36th St and 5704 Holmes Blvd. 115 36th St is a 4 bedroom/3 bath remodeled home 4 houses from the gulf. This property with a pool, lush landscaping and a little fluffing & buffing inside could be a 10 ratio property because of its great location. The property at 5704 Holmes Blvd has so many possibilities I think it confuses people. This property was a duplex converted to a single family on a conforming duplex lot. One, it could be converted back to a duplex (it still has two electric meters and two AC’s) with a bigger foot print; Two, it could be torn down and two new land condos could be built on it; Three, it could be expanded on the ground into a bigger single family home with a pool which would make it a fantastic rental. One property that Larry & I can’t believe hasn’t been snapped up by someone is 2916 Avenue E. This property was recently reduced to $629,000 which makes it a 9 ratio rental property. It’s four houses from the beach and is currently doing about $67,000 per year in rental income. Check out the other great properties on the list.
So to summarize, how is the island market doing? It’s performing at the peak year’s level as far as sales are concerned. If in the last seven months of this year we do sales just equal to 2011 the sales for 2012 will be 367 or 8% over last year. If we keep the current 18% pace above last year we’ll end up with sales of 398. I think at a minimum we will be somewhere between those two numbers. To put that in perspective, sales for 2011 were 340 and that was the best year since 2005. The distribution of sales for the last 12 months sales of 209 single families was; 44% (94) were below $500K, 68% (145) were below $600K and 78% (167) were below $700K. The distribution for sales of the last 12 months sales of 113 condos was; 81% (92) were below $400K, 92% (104) were below $500K and 97% (110) were below 97%. The number of distressed properties on the island are almost non-existent with 10 distressed properties (SF-5 & Con-5) or 3% of the inventory of 334. As I mentioned last month because of the low inventory the number of great rental properties close to the beach are very few. There are only 10 single family properties for sale west of gulf drive under $1 million dollars and there are only 3 lots for sale west of gulf drive under $1 million dollars. As you can see from the charts, average and median sales prices have been rising since 2010 and they look to continue in that direction. Interest rates are in the 3.5% range. Since 1810 they have been lower only from 1900-1910 and 1932-1955. On a $500,000 property, for every 5% increase in the price of the property and every 1% increase in interest rates your principle and interest payment goes up $421 per month. Good reason to buy sooner rather than later.
Ask Alan Galletto-THE Realtor for real estate on Anna Maria Island, FL. 941.232.2216