Posts Tagged ‘demand’

The Wall Street Journal has written a fabulous article regarding the demand on investment homes, more specifically vacation rentals.  The story correlates well to Anna Maria Island Real Estate.  Vacation Rentals account for a great

Wall Street Journal

 deal of Anna Maria Island Real Estate transactions.  While I am unaware of the exact percentage of vacation rentals on Anna Maria I estimate nine out of ten real estate buyers request rental income estimates prior to purchasing.

The article basically explains how investment property transactions are on the rise and in some areas they are seeing minimal appreciation.  Anna Maria City, Holmes Beach and Bradenton Beach are great examples of the trends the Wall Street Journal is writing about.   Anna Maria Island saw about 235 transactions in 2009 and in 2010 we say 317.  This data comes from MLS.  So, the island has seen a 38% increase in transactions as compared with 2009.   Even more impressive is when you take into account an average transaction for Anna Maria Island is around 230 transactions so 2010 frankly was a fantastic real estate year.

The law of economics talk about supply and demand.  Supply is much lower as compared to the height of inventory for sale on Anna Maria Island.  Anna Maria saw around 900 + properties for sale while we finished 2010 with just over 500 properties for sale.  Supply is low and our Anna Maria Island transactions are way up.  Most analysts would agree that as number of months of inventory for sale is a leading indicator of appreciation of property for sale.

For more information on the Wall Street Journal article visit here.  As always, if you have any questions regarding Anna Maria Island Real Estate send me a note or give me a call.

Anna Maria Island real estate is cookin with gas. Pendings have stayed above 50 for several months. More

Larry Chatt: I can Help!

  importantly the amount of real estate sales happening on Anna Maria Island are exceeding the number of properties that are being added to the inventory. A large concern most Anna Maria Island full time Realtors have had is the pent up properties that have been taken off the market due to not selling on the first or second attempt.

Having a ton of listings added to the inventory could clog up the great movement we have had but if that were to happen it would have happened in February. Single Family properties that can rent weekly have been moving well for the last year.  However, monthly rental minimum properties have not been moving as well.  Lately just about everything is moving.  Condos and single family properties since high season have been moving well. Of course price has been critical and prior to 2010 most of the properties being sold were $500,000 or lower. Since 2010 that mark is closer to $650,000. With only two months of data it is a little early for me to cite statistics.

Lastly income properties are still slow to move. If you are sitting on a duplex, triplex, or quad-plex on Anna Maria Island and you need to sell, the best thing to do is slowly reduce the price until the market shows interest with showings. If you need real estate guidance just email or call me (941) 345-1288

As we always hear, a picture is worth a thousand words. Below you will find our proprietary chart which shows the total real estate listing inventory as compared to the sold real estate. Of course this chart is the most useful as it relates to time and high’s and lows in the Anna Maria Island real estate market.  If you review 2010, you can see the sold properties as it relates to the current inventory is at it’s lowest level since the crazy days of 2005.

February 2010 Inventory Absorption

There is no question that for Anna Maria Island real estate the bottom was seen in 2009 at some point for single family homes.  The million dollar question is when Anna Maria Island property owners will see appreciation.  That remains to be seen but the above chart which shows how fast real property inventory is being absorbed, will be the first indicator.  Stay tuned and if you have any questions call or email me.