Sales Archives - Island Real Blog

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!

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 1^st and 4^th 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!

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