NOVEMBER NEWSLETTER 2010
The numbers for October reinforces the fact that sales on the island continue to be very strong. Sales for October 2010 were 21 (SF-10, Con-8, Dup-1 & Lot-2) up 7% compared to October 2009 at 19 (SF-10, Con-8, Dup-1 & Lot-0). Year-to-date sales through October 31, 2010 continues to stay well ahead of last year up 36% at 254 (SF-149, Con-73, Dup-20 & Lot-12) compared to October 31, 2009 Y-T-D at 187 (SF-97, Con-72, Dup-7 & Lot-11). Single family and duplex sales continue to account for the increase in sales over last year and at the pace we’re going we should hit sales in 2010 on the island of over 300 properties. Of the year-to-date sales this year, 29% of the sales were distressed properties (short sales or bank owned). Pended sales also continue to be strong at 57 (SF-28, Con-21, Dup-4 & Lot-4) up from last month’s 50 which bodes well for continued strong sales volume. Island Real Estate also had strong numbers with 7 new contracts in October and 7 closings 3 of them in-house (no other broker involved).
Inventory on the island has leveled off just above 500 with it currently at 521 (SF-258, Con-178, Dup-34 & Lot-51) compared to 522 last month. The inventory is sitting just above the normal range of 450-500 properties for sale at any one time. Distressed properties (short sales and bank owned) also continue to decline and are currently at 37 (SF-18, Con-13, Dup-4 & Lot-2) down from 43 last month, 44 in September and 53 in August. Distressed properties on the island are currently 7% of the inventory and about 20% of the sales. To put that in perspective distressed properties in Bradenton are 51% of the sales Year-to-Date and 66% of the single family homes. You can see that the island market is in very good shape compared to the mainland market.
We have highlighted the Palm Isle Village units ( www.palmislevillage.com ) as great buys over the last few months with a price to rental ratio of 8, 9 and 10 (lower is better in this ratio most properties that are good rentals on the island are in the 12-16 ratio). Within the last two weeks I put two more units under contract at PIV, 3215 Gulf Drive (1 bedroom/1.5 baths, 730 sq ft) listed at $349K and 3209 Gulf Drive (2Bedroom/2 bath 1,480 sq ft) listed at $499K. They are cash deals closing in early December and that will be 7 out of the 11 units sold. If you have any interest in a great second home rental property there are 4 units left. Frank & Al’s Great Buy’s are as follows:; if you’re looking for a single family second home which would rent well then 115 Palm which is west of gulf drive is a great deal at $499,000. The lot is worth $400,000 and the carport could be easily made into another bedroom & bath to make a 3 bedroom/2 bath west of gulf drive. If you put in a pool this property could gross around $50,000 in rentals per year. If you want to be in the City of Anna Maria 787 Jacaranda listed at $599,000 is a great buy. It’s a 3BR/2bath with an elevator and room for a pool and being actually 3 houses from the Gulf it would be a great rental. Check out the rest of the great deals below, if you don’t see something you like call me and tell me what you want.
Interest rates continue to be at all time lows with 30 year conforming loans up to $417,000 at 4.3% and 15 year fixed conforming loans at 3.9%. I think that interest rates are poised to starting moving up so if you want to buy property and are going to use financing than now is the time to buy to minimize your cost of owning a property.
To summarize, the Anna Maria Island market looks pretty healthy especially as compared to other markets in Florida. Property values are down from the peak about 35%-40% but that adjustment had to happen in order for the market to stabilize. Sales have increased steadily every year since the end of 2005 when the market hit the wall and this year we will see 300 plus properties sold which is well above the normal sales of 250 and the most properties sold on the island since the peak in 2005. Single family average and median home sales are trending up while condos are down from last year but stabilizing, taking the biggest hit as far as values are concerned. Inventory has stabilized and with the record number of transactions the island market is very healthy and poised to begin increasing in value. We look forward to helping you with your Real Estate needs.
November 2010 Real Estate Newsletter ALAN GALLETTO, Realtor; Anna Maria Island, FL.
NOVEMBER NEWSLETTER 2010