Sales continue at a record pace in August with 37 properties sold (SF-19, Con-11, Dup-3 & Lot-4) a 48% increase over August 2011 at 25 (SF-14, Con-8, Dup-0 & Lot-3).  August 31, 2012 Y-T-D sales were 295 (SF-165, Con-92, Dup-19 & Lot-19) up 20% over August 31, 2011 Y-T-D at 246 (SF-119, Con-100, Dup-8 & Lot-19).  Of the August 31, 2012 Y-T-D sales of 295 only 12% or 37 properties (SF-18, Con-15, Dup-4 & Lot-0) were distressed (bank owned or short sales) compared to August 31, 2011 Y-T-D sales in which 15% or 37 (SF-13, Con-19, Dup-4 & Lot-1) were distressed.  Sales for the last 12 months were 389 (SF-220, Con-118, Dup-27 & Lot-24) with 56 (SF-22, Con-26, Dup-6 & Lot-2) or 14% distressed.  Pended properties (properties under contract) are down from last month but still exceptionally strong at 55 (SF-32, Con-17, Dup-4 & Lot-2).  The high number of pended properties continues to drive high sales.  Inventory on the island continues to move down at 304 (SF-148, Con-99, Dup-24, Lot-33) the lowest it’s been since 2005 and down again from last month’s 315.

Two more of Frank, Larry & Al’s Great Buy’s went under contract since the last newsletter.  The single family lot on 306 Spring Ave and 5704 Holmes Blvd the single family home on a conforming duplex lot.  For those of you still looking for a lot the one at 106 Beach Ave (3 houses from the beach) is still available listed at $649,000.  I’ve also just listed an older home at 142 Crescent Dr. which sits across two platted lots for $499,000.  You can improve the house that’s there or tear the house down and build on one lot and sell the other.  Another new listing you should look at is a totally remodeled 3 bedroom/2 bath single family home close to the beach at 5802 Imperiore.  It has high ceilings in the living area and a grotto pool which would make it a very good rental.  Check out the detail on these in Frank, Larry & Al’s Great Buy’s. 

            You may have read in the local paper the controversy around rental of some of the 5,6 & 8 bedroom homes being built.  Most of the issues revolve around the number of cars parked around the property and late night noise around the pools.  We do not have any of these “Motel Homes” in our rental program but Larry has met with some of the other large rental agencies to develop a “Best Practices” approach to head off these kinds of problems and he has implemented a “test drive” of them over the last 6-7 months.  It includes giving renters when they check in a written list of do’s and don’ts, and giving the police a list of our rental properties so they can call us right away if there is a noise issue. Island Real Estate has only had about 15 issues over that period of time and under our program we are proud to communicate there were no second complaints on any guests that were visited due to late noise issues.  We attribute this to an IRE on call person visiting the property when there is noise disturbance at a vacation rental.  We take the quite enjoyment of our community seriously and hope other companies will follow our lead to cease late night noise immediately by visiting the property regardless of the time of day… OR night.

To summarize the current state of the market the trends we have seen all year continue to hold.  Sales at 30 year peak level highs and inventory at historic lows.  The number of sales Year-To-Date for 2012 are 20% above 2011 and continue to be on track to end the year around 400 properties sold.  The distribution of sales for the year continue unchanged.  The distribution of single family sales over the last 12 months were 50% <$500K, 71% <$600K, 81% <$700K and only 7% over $1 Million.  The distribution of condo sales over the last 12 months were 82% <$400K, 91% <$500K, 96% <$700K and only 3% over $1 Million.  The number of  Distressed Properties (bank owned or short sales) continue to be extremely low at 10 (SF-5, Con-5, Dup-0 & Lot-0) or 3% of the inventory.  Of the sales over the last 12 months (389) only 14% (56) were distressed.  Of the August 31, 2012 Y-T-D sales (295) only 12% (37) were distressed properties compared to August 31, 2011 Y-T-D sales (246) which had 15% (37) distressed properties.  As we have seen for the past year the inventory on the island has continued to decline.  Inventory this month has hit another historic low at 304 compared to 315 last month and 332 in July and 434 in September of 2011.  The outlook for the island market continues to be strong with sales at historic highs and inventory at historic lows.  In 2011 we began to see a balance of the negotiating position of buyer and seller compared to the buyer’s market prior to 2011.  In 2012 we are now seeing the market change to a seller’s market as evidenced by properties selling close to or at list price.

Go to my website to search the MLS for properties or   Call me, Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate, and I’ll send them right to you!