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!

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.

Choose the right Anna Maria Island real estate professional

Anna Maria Island real estate is very complicated.  Three cities with different zoning as well as rules and regulations is a strong start.  Not to mention vacation rental registration requirements vary in each city as well as their inspection criteria.  Follow that up with Coastal Construction lines to be concerned with, riparian rights as well as rentability and it creates an equation for a disaster if a buyer tries to go it alone.  An Anna Maria Island property is too large of an asset to risk not finding the right real estate professional to help with your once in a lifetime purchase.  Of course this is where I would provide a “plug” for Island Real Estate sales professionals as we only have full time sales professionals in our office.  While the rest of Anna Maria Island in recent years has doubled their sales staff.  Over the last decade Island Real Estate has only added two full time sales professionals that combined have sold real estate ON Anna Maria Island for more than 40 years.  I have heard too many horror stories of buyers using a friend or friend of a friend that truly is a weekend warrior.  A Sarasota or Tampa real estate professional will be hard pressed to understand the zoning and rentability requirements for Anna Maria City, Holmes Beach as well as Bradenton Beach.  It is just next to impossible to keep up with multiple areas and city rules and regulations.  I do however recognize there are great real estate professionals in other organizations on Anna Maria Island.  For real estate professionals outside of Island Real Estate be sure to use my supplied questions below to help you make sure you have found one of the “good one’s.”  Check out below.

A)  Is their office located on Anna Maria Island?  If the answer is “no” then move on and there are no further questions to be asked.  There are way too many changes occuring and the office HAS to be local to keep up with all three cities.
B)  How many Anna Maria Island listings does the individual have currently or in the past?  If in the last two-three years you cannot find at least 10 listings ON Anna Maria Island then MOVE ON.
C)  Use some of the zoning information I have provided in my Holmes Beach or Anna Maria City rental posts and ask the real estate sales professional specific questions on rentability of zones in the City you plan to purchase in.  All FULL TIME local sales professionals should be aware of at least two of the three zones you ask about.
D)  Ask if there are any occupancy restrictions in Anna Maria or Holmes Beach?  If you wanted to rent out to 16 people is that allowed?  If the sales person answers “no problem” without caveats then RUN and run FAST, that is away.

I am always happy to help answer questions you may have about Anna Maria Island real estate.  Feel free to email or give me a call on my direct line.  (Larry@IslandReal.com) or (941) 345-1288.  I pre-apologize it can sometimes take 48 hours to return calls as well as emails but I am happy to help with questions you may have.

I hope the questions above help to find the right sales professional for your Anna Maria Island real estate search.  Anna Maria Island real property can be extremely complicated and don’t leave your large asset purchase up for chance.  Good luck and happy hunting!

  Larry Chatt

Lawrence Chatt – Island Real Estate of Anna Maria Island

Larry Chatt - General Manager of Island Real Estate of Anna Maria IslandLarry is originally from Rochester, NY and received a B.S. in Mechanical Engineering at Rochester Institute of Technology.  He was lucky enough to train in General Motor’s collegiate cooperative program as well as General Electric’s exclusive two year executive leadership training program.  Larry’s diverse Corporate America experiences have taken him to Cleveland, Ravenna, OH, Youngstown, OH, Burlington, IA, Boulder, CO, Newport, RI, Monterrey, Mexico and last but not least, Budapest and Retsag, Hungary.  Larry attributes his quick progression into executive leadership to education, internal training, uncompromising ethics, a can do attitude, and innovative solutions to solve tough problems.  His latest challenge involves taking over Island Real Estate’s Vacation Rental division and growing the team to support the high expectations of our owners and guests.  Larry feels extremely lucky to live on Anna Maria Island and is passionate about everything Anna Maria as well as his lovely wife and son.

Larry has owned investment property on Anna Maria Island while living in Europe, the East Coast, the Mid-West.  This first hand experience gives Larry a fantastic understanding of all the concerns that involve the purchase or management of a second home or investment property.  This coupled with running the vacation rental division for several years has provided fantastic background to aide any Anna Maria Island Real Estate Investment search.  Larry’s resume is littered with continuing education and his latest accomplishment is the E-Pro designation.  “Technology as well as best-practice marketing techniques are constantly changing.  Regardless of an individuals field of expertise, service excellence requires a passion and love of learning or “tried & true” techniques used to supply service excellence becomes stagnant and non effective.”

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Now a little about Real Estate Sales at Island Real Estate of Anna Maria island…
Island Real Estate has worked out of the same location since 1970.  Our office is fortunate to contain the best and brightest full time sales associates found on Anna Maria Island.  Over 100 years of marketing experience will be supporting your real estate efforts.  The Island Real Estate team has facilitated thousands of Real Estate transactions on Anna Maria Island.  It’s estimated that our office has been involved with more than 1/2 the residences found in Anna Maria City and Holmes Beach.  To meet our fantastic sales associates visit our website.

Larry keeps up several blogs.  See links below…
Anna Maria Island Vacation Rental Blog
Anna Maria Island Blog
Anna Maria Island Real Estate Blog