MAY NEWSLETTER 2012
Considering sales for April 2011 at 49 (SF-28, Con-19, Dup-1 & Lot-1) were the highest monthly sales since July 2005, sales for April 2012 at 42 (SF-24, Con-9, Dup-5 & Lot-4) were the second highest monthly sales since July 2005. Year-to-date we are still ahead of last year by 6% with sales for April 30, 2012 Y-T-D at 135 (SF-79, Con-38, Dup-9 & Lot-9) compared to April 30, 2011 Y-T-D at 127 (SF-60, Con-54, Dup-6 & Lot-7). Sales for the last 12 months were 348 (SF-193, Con-110, Dup-19 & Lot-26) compared to the previous 12 months at 342 (SF-187, Con-118, Dup-20 & Lot-17). Sales for the last 12 months were 348 (SF-193, Con-110, Dup-19 & Lot-26) compared to the previous 12 month at 342 (SF-187, Con-118, Dup-20 & Lot-17). If you look at the charts below average and median sales prices for single family, condo & duplex’s for the last 12 months were all up compared to the previous 12 months. Currently there are only 15 distressed properties (SF-8, Con-5, Dup-1 & Lot-1) on the island. Pended properties (properties under contract) are currently at 82 (SF-51, Con-24, Dup-4 & Lot-3) double the normal number of pended properties. Again, this is a leading indicator of strong sales for the coming months. Also the inventory continues to plummet. It is currently at 319 (SF-146, Con-110, Dup-23 & Lot-40) down from 369 last month and 464 in May of last year. We haven’t seen this low a level of inventory since 2004.
Another two of last month’s Frank, Larry & Al’s Great Buy’s went under contract, 321 64th St listed at $399,000 and 5704 Holmes Blvd listed at $419,000. A third property 7001 Holmes Blvd listed at $427,900 has verbal agreement and should be under contract by the beginning of this week. As I mentioned last month, with the inventory so low there are very few good rental properties available. By good rental properties I mean properties that have a 10 ratio (Purchase Price/Gross Annual Rental Income). Most of the buyers of property on the island are buying them as 2nd and 3rd homes and about 90% of these buyers want to rent their property when not using it. The Island Garden Village one & two bedroom condos are great rental properties and there is financing available on them. Also check out the two West of Gulf Drive properties. Anything west of gulf drive is more conducive to improving because the value of that property will go up more than a property 3 and 4 blocks to the beach.
To summarize sales on the island are at historic highs and properties are selling faster than new properties are coming on the market as can be seen by the low inventory of 319. As I said last month, we’re seeing the combination of high demand and low supply pushing prices higher and it’s now turned to be a seller’s market again. Based on the current inventory level and the pace of current sales there are only 10 months of inventory on the market. If you look at average and median sales prices for the last 12 months compared to the previous 12 months average sales prices for single family homes are up 18% and median sales prices are up 19%. For condos the average sales prices are up 12% and median sales prices up 15% over the same period. The sales numbers are way above normal and you can see from the current inventory levels that properties are selling faster than new listings are coming on the market. Of the sales for April 30, 2012 Y-T-D (135) only 16 properties were distressed or 12%. Of the 146 single family properties for sale 63% are under $700K and 37% are over $700K. Of the 110 condos on the market 91% are under $700K and 9% are over $700K. If you look at the last 12 months sales 78% of the single family sales were under $700K and 22% were over $700K. Of the last 12 months of condo sales 96% were under $700K and 4% were over $700K. The bottom line is that property sales on the island are as good as they have ever been and prices are continuing up. Pended sale this month at 82 are higher than I’ve seen them since 2005. Hope you enjoy the newsletter.