Market UPDATE!

Anna Maria Island Real Estate is hot, hot, hot! We are at unprecedented inventory and transaction levels. The Island Real Estate team for years has used inventory versus transactions or better known as “absorption rate” as a leading indicator of real estate appreciation. Absorption Rate is a measure of supply versus demand. We have more than 15 years of data on Anna Maria Island inventory for sale as well as number of transactions. The attached chart provides vertical bars which represents the inventory for sale on Anna Maria Island and the line represents the months of inventory on hand as compared to the current transaction levels.

Let us be clear, the number of Anna Maria Island sales as well as pending sales have broken every record we have for the last 15 years and would guess, ever. In addition, we are at unprecedented low levels of Anna Maria Island property for sale. Very high demand coupled with very low supply normally results in faster appreciation. We hypothesize folks are migrating from high density urban areas to locations like Anna Maria Island and pandemic migration is creating a large surge in demand and has lowered inventory to the lowest inventory we have on record.

In summary, if you have been considering selling your property it sure appears now is a perfect time. Give one of our Island Real Estate sales professionals a call to learn more. Of course not every property is flying off the shelf but our team can assist in which markets are moving quickly and offer a transparent view on the opportunity to sell your Anna Maria Island property.

If you have been considering buying real estate then we suggest you consider what double digit appreciation looks like in 12 months. A prudent strategy would be look forward rather than in the rear view mirror when considering market pricing. For Anna Maria Island Real Estate in high demand it could be the difference of more than $100,000 in twelve months. Larry Chatt

NEW LISTING SPOTLIGHT!

Keep up to date with NEW offerings here! Newly listed properties for Sale will be featured frequently – keep checking to see if one may be your perfect “peace” of paradise!  

Fall 2020:  115 10th St S, South Beach Village, Bradenton Beach

Amazing three bedroom two and a half bathroom Key West style townhome with Gulf of Mexico views! Move in ready or ready to become a vacation rental income property. Beautifully maintained with lots of upgrades! Large gourmet kitchen with amazing views of the beach. Did we mention stainless steel appliances, solid wood cabinetry and granite counters make this gourmet kitchen a dream to cook in? Master bedroom has large en-suite bathroom with jetted tub and a view of the beach too. Freshly painted and new furniture in the entire home. HOA put on a new roof with a 10 year warranty. There are some improvements on the way as well; exterior is scheduled to be repainted, front decks are to be replaced, stucco getting repaired, and metal roofs will be repaired on the awnings as well. Close to everything! Walk to restaurants, ice cream shops, local trolley and local shops.

Click here for the Full Listing Information. 

South Beach Village pool area
Water Views!
Brightly colored townhomes
Roomy kitchen
Bright living area with lots of windows

Anna Maria Island and COVID-19

BREAKING NEWS! ANNA MARIA ISLAND ISLAND IS NOW OPEN FOR SHORT TERM RENTALS! Visit our Island Real Estate Information Page for more information.

Our Island Real Estate office has reopened, taking extreme precautions to keep visitors, sales professionals and staff safe. Our office is open to the public Monday through Friday with staff in the office on Saturday answering any and all telephone calls.

Anna Maria Island restaurants are open to 50% capacity and hair-nail salons were opened May 11th. Vacation rentals continue to be closed to guests with under 30 night stays for the entire Island. We are seeing irresponsible management companies as well as vacation rental owners putting their guests at risk by allowing immediate arrivals less than 30 nights. Code enforcement IS actively pursuing guests checking in and ARE evicting guests. There are a great number of theories regarding when Vacation Rentals will be opened however one thing is certain, no one yet knows for sure. One additional challenge vacation rental owners are finding is their local management companies have no staff on hand and thus properties during this epidemic are not actively being managed. Of course Island Real Estate Vacations continues to have our full staff on hand to continue with monthly maintenance and any owner requests. Visit our newly formed property management information page if you are considering a change.

Surprisingly, Anna Maria Island Real Estate Sales continues to remain healthy. We have seen a few closing delays and cancellations due to COVID-19 but the lion share of contracts have closed. Real Estate professionals are beginning to hold open houses with lack luster results. What we are seeing is the serious shoppers are still viewing properties physically or reviewing a virtual walk through. New contracts on real estate property are occurring albeit at about a 60% pace. Look for our June/July newsletter which will provide statistics on the pace of real estate sales on the Island. March and April closings have remained steadfast and on pace for a normal 375+ real estate closing year.

For up to date COVID 19 information visit our Island Real Estate Information page. If you need anything give us a call. We are here and ready to help if you think we can. Stay safe!

November Sales Market Update

Hope everyone is enjoying the Fall? Thought it would be interesting to compare some details about single family real estate for each city on Anna Maria Island.

DEFINITIONS: “For Sale” column provides a snap shot of single family properties for sale In the corresponding city as of the middle of October. “Sold” column are number of single family properties sold in the last 12 months for each City. “Absorption” is a measure of how many months of inventory are on hand based on the sold pace for the last 12 months. “Percent of Market (Listed)” provides the percentage of total properties on Anna Maria Island listed and same with percent sold. So for example Bradenton Beach has 10% of the properties listed on all of Anna Maria Island currently and in the last 12 months Bradenton Beach represents 8% of the total number of single family homes sold on Anna Maria Island. “On Market” displays numbers of cumulative days on the market. “Average List – OCT 15th” is the average list price of the properties currently for sale in the middle of October. “Average Sold” provides the average sold price by city. “Average List” shows the average list price of the sold properties for the last 12 months and “average $/Sq ft is the average per square foot for all properties in the City sold in the last 12 months.

A few conclusions can be drawn from the above information. Firstly, Anna Maria City is a hotter market given the percent sold is significantly higher than the current percentage of inventory of properties for sale in Anna Maria City. This can also be drawn from 8 months of inventory on hand for Anna Maria City versus Holmes Beach at 10 months and Bradenton Beach of 12 months. Another important detail is while inventory absorption is 8-10 months, the time properties that have SOLD is much less, more like half that time, 4-5 months. This points us in the direction that properties that are priced right will sell much quicker.

Let’s dig more into the data of pricing property correctly. Using the same 202 single family properties that sold on Anna Maria Island in the last 12 months, I segregated the sold properties into sold within 6 months and sold after 6 months had elapsed. The data is very enlightening. There were 64 properties that sold beyond 6 months or almost 1/3 of all single family properties sold beyond 6 months. Average sale price was $1.119M, $501 per square foot and get this, the AVERAGE time the property sold, 292 days! 139 properties sold within 6 months or 2/3 of the inventory sold within 6 months, sold price is $1.076 M, $577 per sq ft and the AVERAGE time the property sold was 61 days!! That is two months. WOW! Almost an 8 month difference!

Of the current inventory for sale, about half has been on the market more than 6 months and half has been less.

Moral to the story, price your property right and on average it will sell in less than 2-3 months. Price it too high and the property may sell after 10 months. One caveat to make matters worse, currently half the single family properties for sale have been on the market 342 days. What does that mean? A seller that prices their property too high has a 50-50 shot at selling in 10 months, otherwise appears it could go much longer!

2018 Market Summary for Anna Maria Island by Lawrence Chatt, Broker

Results are in for Anna Maria Island Real Estate for 2018. I would like to discuss each category of real estate then will move on to the overall health of Real Estate on Anna Maria Island.

Single family homes on average were flat for 2018. The amount of single families sold (234), average sold price ($1,050,000), and days on market (135) are all flat as compared to results from 2017. One notable difference this year is the amount of single family homes on the market at 179 versus end of 2017 at 139. Average for the last 4 years has been 170 single family homes on the market in December. While a big jump from last year the inventory of 179 falls right in line with a normal year.

Condos for sale on average improved versus 2017. Condos have lagged single family home results so not big surprise condos caught up a little in 2018. More specifically, on average condo prices were up 3%, transactions were flat (131), Days on the market flat (138) and inventory was down 15% (73). If you have been considering selling a condo, now might be a good time to throw your hat into the ring since the average inventory in the last 4 years has been 85 and currently our supply is low.

Multi-family/ Duplexes and Land are all relatively flat as compared to 2017. There is relatively no movement for duplexes however for vacant land there are two noticeable results for 2018. The first is appreciation on average of 6% versus 2017. Fairly significant however the “mix” of sold vacant land could be the culprit as only 9 vacant lots were sold versus an average year of 19 and 2017 of 18. Of course as vacant land becomes more and scarcer on the island this stat is expected to continue to reduce slowly. However I believe escalating building costs and the fact land plus build cost in most cases exceeds the price of relatively new product on Anna Maria Island has contributed to the slowdown in 2018.

Finally where would be in this world without charts? Below is a chart that provides the quarterly sales since 2005. Of course this is the demand side of the Anna Maria Island absorption rate. Sales for the 4th quarter of 2018 is low and the last time we saw transactions for the 4th quarter hovering around 60 was in 2011. 2018 transactions, (397) ended a little higher than the 4 year average of 390 so 2018 for demand was an average year. Red tide is likely the culprit of the 30% drop in sold properties for Q4 and its encouraging our new governor of Florida is taking red tide seriously and within weeks of being sworn in is taking some progressive steps towards ensuring red tide is stamped out. Definitely something we will all keep our eye on for 2019.

As always, email or call if you have further questions. We would love the opportunity to help find your “peace” of paradise on Anna Maria Island or its surrounding areas. Here’s to a prosperous, healthy and red tide free 2019. I very much appreciate your business!

AFTER CLOSING – NOW WHAT? Lawn Tips

AFTER CLOSING: So your Island Real Estate Sales Agent has been there with you through the closing, but the work isn’t done! You’ll need local vendors for both routine maintenance and special projects. Critical to keeping your curb appeal is choosing a landscape maintenance vendor that is right for what you envision your property to be. Some homeowners prefer a precision trimmed yard and others love to have the native plants grow lushly for a more tropical feel. It’s important you both are familiar with any currently installed irrigation systems at your new home and ensure the timers are set around local watering rules, if any.

Discussing fertilizer and pest control spray procedures and schedules is important too so make sure to add that to your list when interviewing landscapers. Keep in mind growing seasons are unique in Florida where we are considered a sub-tropical zone for planting.

We have had good experiences with: Stewarts Landscape Services; 941-778-6036, Chad’s All in One; 941-713-3790 and Shady Lady Horticultural Services, 941-704-9025.  Continue reading AFTER CLOSING – NOW WHAT? Lawn Tips

Anna Maria Island Market Conditions for 4th Quarter 2018

 

Anna Maria Island real estate continues to be robust with what seems to be a healthy amount of supply and demand.  Our proprietary inventory absorption metric has spiked in the fourth quarter of 2018 to 11 months of Anna Maria Island real estate for sale but would not characterize the spike as an indicator of problems ahead as we have reached 11 months of inventory for sale on the island several times in the past 5 years.  More specifically 1st and 4th quarter of 2016.  For the last 5 years our real estate for sale has averaged a little more than 8 months on hand.   How well inventory is turning is a great leading indicator for real estate.  It provides a relative measure when supply and demand is out of balance and provides an indicator to watch for movement into a buyer’s market.

For the last five years average transactions per month has ranged from 45 to 22 with the low occurring this quarter at 22.  We have dipped into the twenty’s for number of property transactions 6 out of the last 20 quarters so it is nothing new.  Inventory remains low at 257 so supply and demand continues to remain at what seems to be a healthy balance.  For the last five years our total real estate for sale on Anna Maria Island has ranged from about 350 to 250 properties.  The average for the last five years has been 283 properties for sale at least according to Mid Florida MLS figures.

Happy Holidays!  We hope everyone is staying warm during this cold season.  The island has been unseasonably warm up until December and we are starting to see a few cold snaps and dipping into the 40’s occasionally at night.  Brrr…

Please be sure to call Island Real Estate for your Anna Maria Island real estate needs.  All our sales professionals are full time and we don’t have any weekend warriors dabbling in real estate on the side.   We would love the opportunity to help!

Anna Maria Island Sales: Market Conditions

MARKET CONDITIONS by Broker Lawrence Chatt:  The Anna Maria Island real estate market continues to remain strong for single family homes. No question Anna Maria Island Real Estate is a strong investment. 20 years ago the average single family home on Anna Maria Island was $275,000. Today the same property on average is worth more than 1 million dollars. That correlates to a 7% appreciate rate for the last 20 years. Couple that with the earning power of vacation rental income and that makes for an impressive return. While you can see single family homes over the last 20 years have provided a strong return most buyers on Anna Maria Island are not purchasing real estate for their potential financial returns. They fall in love with the island and want to hop on the Anna Maria Island “bus” as soon as possible given the history of escalating prices and potential that the “ridership” of Anna Maria Island may outpace future earning power. Potential residents of Anna Maria Island don’t want to see themselves get priced out of the market. Speaking of which, here is a great article by a local newspaper that provides statistics about the 1 Million dollar real estate club known as Anna Maria, at least forecasted for 2018.