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.


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

Last 12 months – October 1 ‘2010 – September 30 ’2011

# 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

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

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