JULY NEWSLETTER 2013
Sales for June 2013 at 43 (SF-22, Con-18, Dup-2 & Lot-1) was the first month this year we were above the same month last year of June 2012 at 36 (SF-23, Con-9, Dup-2 & Lot-2) up 20%. As I mentioned last month I felt, although sales for last year were one of the highest in the last 30 years, that even though we were lagging behind we would begin to catch up and that is the case. Sales for June 30, 2013 Y-T-D were 194 (SF-110, Con-63, Dup-11 & Lot-10) compared to June 30, 2012 at 228 (SF-133, Con-67, Dup-14 & Lot-14) only 15% below last year’s record pace. Sales for the last 12 months at 397 (SF-222, Con-122, Dup-24 & Lot-29) were 11% above the previous 12 months at 374 (SF-218, Con-108, Dup-22 & Lot-26). Of the sales for the last 12 months the distressed properties (bank owned or short sales) were 42 (SF-20, Con-17, Dup-5 & Lot-0) only 11% of sales compared to the previous 12 month at 50 (SF-18, Con-26, Dup-4 & Lot-2) or 13% of the sales. Inventory on the island continues to remain low at 291 (SF-131, Con-94, Dup-22 & Lot-44) about the same as June at 287 and down from 321 in May, 344 in April, 351 in March and 366 in February. Currently there are only 8 (SF-1, Con-6, Dup-1 & Lot-0) distressed properties or 2% of the current inventory. Pended properties (properties under contract) remain strong at 64 (SF-44, Con-9, Dup-9 & Lot-2) compared to 84 in June, 73 in May and 67 in April.
This month’s Frank, Larry & Al’s Great Buy’s haven’t changed much from last month except that 109 Cedar went under contract on 7-15-2013 with an expected closing on 8-30-2013. Replacing it this month is 771 Jacaranda Rd listed at $745,900 it’s a 3 bedroom/2bath elevated pool home within steps to the beach. This would be a very good investment property or a great second home. At the expense of being redundant 2916 Avenue E is still the best investment buy on the island. Listed at $629,000 and four houses to the beach this property has consistently brought in $65,000 a year and with 20% down and a 30 year mortgage at 5% it pays all the operating cost and just about all the mortgage. This is ideal for an investor who wants to have an investment property for 8-10 years in a great location and then tear it down or remodel it to live in. Check out all of the great properties on the list.
In summary June 30, 2013 Y-T-D sales are still behind last year, which was a peak year, but by only 15% compared to last month where we were lagging 2012 Y-T-D by 22%. June 2013 sales, which were up 20% over 2012, allowed us to close that gap. Inventory on the island remains at historic lows and as you can see from the inventory absorption chart it is at 2005 levels with only 7 months of inventory available. If you look at the Market Stats chart you can see that single family home transactions in 2012 and 2013 are higher than they have ever been including the peak year of 2005. Some of that has to do with conforming duplex’s being torn down and new single family home land condos built in their place. That is also reflected in the low duplex inventory with only 22 currently for sale or 8% of the current inventory. You can see from the charts that average and median single family sales prices are the highest they have been since 2008 and duplex average and median sales prices are the highest they have been since 2007. While pended properties are still high at 64, there are quite a few distressed properties (13) in that number which is 20% of the current pended properties. Of the 13 distressed pended properties 8 are short sales and 5 are bank owned. That takes quite a few distressed properties out of the market which is why there are only 8 or 2% in the current inventory. In the macro market median prices on single family homes in Manatee County are up 11% from a year ago and median prices on condos in Manatee County are up 19% from a year ago. Increase in prices on the mainland continues to bode well for the island market since the island market prices tends to increase at a much higher rate.
Alan Galletto 941-232-2216