JULY NEWSLETTER 2012
Sales continue to be strong in the island market with sales for June 2012 at 36 (SF-23, Con-9, Dup-2 & Lot-2) up 13% compared to sales for June 2011 at 32 (SF-14, Con-15, Dup-1 & Lot-2). June 30, 2012 Year-To-Date sales were 228 (see detail below) up 18% compared to June 30, 2012 Year-To-Date sales of 194 (see detail below). Of the June 30, 2012 Y-T-D sales only 11% or 25 (SF-12, Con-11, Dup-2 & Lot-0) were distressed (bank owned or short sales) compared to June 30, 2012 Y-T-D sales in which 16% or 31 (SF-11, Con-15, Dup-4 & Lot-1) were distressed. Sales for the last 12 months were 373 (SF-218, Con-108, Dup-21 & Lot-26) with 50 (13%) of them distressed compared to sales of the previous 12 months of 362 (SF-184, Con-137, Dup-20 & Lot-21) with 87 (24%) of them distressed. Pended properties (properties under contract) still remain strong at 69 (SF-36, Con-23, Dup-6 & Lot-4) which continues to fuel strong sales over the next 60 days. Inventory continues to remain low at 332 (SF-158, Con-112, Dup-23 & Lot-39) compared to 334 last month and 442 in July of 2011. The inventory has continued to drop in 2012 from 427 in January 2012 to the current 332. The average normal inventory for the island is 450-500 properties at any one time.
The two properties that went under contract last month from Frank, Larry & Al’s Great Buys closed this month. The west of gulf drive property at 109 75th St closed at $525,000 and the property at 319 64th St closed at $425,000. Again this month the best investment buy on the island is 2916 Avenue E. I can’t believe an investor hasn’t grabbed this property by now. It is 4 houses to the beach and is a 9 ratio property, with 20% down and a 30 year mortgage at 5% the rentals pay all operating expenses and just about all the debt service (principle and interest) on the property. Once you put 20% down the property carries itself. There must be one person out there who is looking for a property that is close to the beach and carries itself. I’ve attached a “cost of ownership” for this property in the back of the newsletter. Check out the other “Frank, Larry & Al’s Great Buys” in the next blog or go right to my website to see them and all the stats.
In summary, the island market continues to perform at peak year levels. Sales for 2012 are running at the rate for 2003, 2004 & 2005 which were the three highest year’s sales in the last 30 years and 18% ahead of 2011 which had sales of 340 properties. The distribution for single family sales over the last 12 months were 50% (108) were below $500K, 70% (153) were below $600K, 79% (173) were below $700K and 8% (18) were over one million dollars. The distribution for condo sales over the last 12 months were 81% (87) were under $400K, 91% (98) were under $500K, 95% (103) were under $700K and 3% (3) were over one million dollars. The number of distressed properties (short sale or bank owned) are extremely low at 9 (SF-4, Con-3, Dup-1 & Lot-1) or 3% of the inventory. Of the June 30, 2012 Y-T-D sales of 228 only 11% were distressed properties. Of the sales over the last 12 months only 13% were distressed compared to 24% over the previous 12 month sales. The inventory in the last 3-4 months has settled in the low 300’s which is significantly lower than the average normal inventory of 450-500 properties. The only time the inventory on the island has dropped below 300 was the peak years of 2004 and 2005 otherwise it has never been lower than it is currently. With the inventory so low the number of great rental properties (properties close to the beach) are very few. Currently there are only 16 properties for sale west of gulf drive. Of those only 5 are under one million dollars and there are non under $600K. The outlook for sales for the rest of the year is very positive. With the inventory so low and sales so strong we will be seeing appreciation in prices again for 2012 probably in the 6%-7% range.
Because we are in the middle of Hurricane season I’ve included the updated N.O.A.A. Hurricane landfall chart from 1950-2011. Hope you enjoy it. Until next time… we’re living in paradise.
Call me, Realtor ALAN GALLETTO 941.232.2216 of Island Real Estate. www.Alangalletto.com