December Newsletter 2012

           Sales on the island continue at a record pace in November with 30 properties sold (SF-21, Con-4, Dup-4 & Lot-1) a 25% increase over November 20011 at 17 (SF-10, Con-5, Dup-1 & Lot-1).  November 30, 2012 Y-T-D sales were 392 (SF-217, Con-117, Dup-26 & Lot-32) up 25% over November 30, 2011 Y-T-D sales at 314 (SF-160, Con-117, Dup-13 & Lot-24).  Of the November 30, 2012 Y-T-D sales of 392 only 11% or 44 properties (SF-23, Con-17, Dup-4 & Lot-0) were distressed (bank owned or short sales) compared to November 30, 2011 in which 17% or 53 (SF-17, Con-28, Dup-5 & Lot-3) were distressed.  Sales for the last 12 months were 418 (SF-231, Con-126, Dup-29 & Lot-32) with 47 properties distressed (SF-23, Con-19, Dup-5 & Lot-0) or 11% of the sales.  Pended properties (properties under contract) although down from last month at 62, are still strong at 47 (SF-30, Con-10, Dup-4 & Lot-3).  Inventory on the island continues to remain historically low at 319 (SF-156, Con-100, Dup-34 & Lot-29).  For the past six months inventory has ranged between 295 and 320.

Again since last month two of Frank, Larry & Al’s Great Buy’s have gone under contract.  First 5802 DePalmas listed at $499,000 went under contract and closed for $485,000.  Also 142 Crescent, a single family home listed at $499,000, built over two platted lots went under contract and is due to close the end of January.  The best investment buy on the island is still 2916 Avenue E listed at $629,000.  This property is a 9 ratio and it has consistently done about $65,000 in gross annual rentals which means with 30% down it will pay all operating expenses and the mortgage.  Another good investment buy is 115 36th St just reduced to $599,000.  If you put a pool in this property it would be a 10 ratio and be a fantastic rental.  I just listed a great island home, 309 64th St, at $699,000 built in 2006.  It’s well built (concrete block all the way up) It’s 3 bedrooms/2.5 baths, a den, has a great salt water pool & waterfall, elevator, built in outdoor kitchen, high ceilings and 3 blocks to the beach.  This one won’t last long.

To summarize the current market, with only two weeks to go we are definitely going to hit over 400 properties for sale on the island in 2012.  We were at 392 at the end of November and there have been 15 sales already in December.  As I mentioned last month, we have never had over 400 properties sold on the island in the last thirty years except for 2005 (the peak year) when we had 425 sold.  As you saw below sales on the island are still going strong in the 4th quarter with November 2012 sales 76% ahead of November 2011 sales and November 30, 2012 Y-T-D sales 25% ahead of November 30, 2011 Y-T-D sales.  The distribution of Single Family sales over the last 12 months was 52% < $500K, 71% <$600K, 82% <$700K and 7% >$1 Million.  The distribution of Condo sales over the last 12 months was 79% <$400K, 91% <$500K, 97% <$700K and 2% >$1 Million.  As you can see from the distribution of sales although sales are at record highs, the high end sales (over $1 Million) for both single families and condo’s are a very small part of the market.  With sales so strong properties are not staying on the market very long and a majority of them are selling within  5% of the list price and some at list price.

You probably have heard or read about the controversy of the “big box” land condos (5 bedrooms or more) that were built in Holmes Beach over the last 4 years which have created complaints about parking and noise.  This controversy has resulted in a new mayor, city council members and building officials.  This new regime is looking at how to stop this trend from continuing and they are proposing a moratorium on R2 construction for 6 months until they decide on how they may want to change the code.  The majority of conforming duplex’s on the ground have already been either remodeled and condo ‘ed or torn down and new single family land condo’s have been built.  I don’t think there are more than a dozen or so conforming land condo’s left that haven’t been converted so I don’t think we’ll see much of this continuing in the future.  As I mention in last month’s newsletter the island market looks to continue to be strong and we should see modest appreciation in 2012.

Call me, Realtor ALAN GALLETTO  941.232.2216 of Island Real Estate.