ACTIVE LISTINGS ON ANNA MARIA ISLAND CONTINUE TO CLIMB, THE NUMBER OF SALES ARE WAY DOWN BUT THERE ARE SOME POSITIVE SIGNS

The number of active property listings on Anna Maria Island continues to increase, up from the 632 reported in the last issue of AMIPSR on Feb. 13, 2006 to 714 on May 11, 2006. The active listings included 289 single family residences with an average listing price of $1,055,314.; 285 condominiums, average listing price of $744,875.; 81 duplex/triplex listings, average listing price of $878,953.; 37 lots, average listing price of $1,140,743.; and 22 commercial properties, average listing price of $2,902.545.

At press time these active listings have been on the market an average of 117 days, with commercial properties on the market the longest number of days (161) and condos (118) and lots (101 days) and single family residences (104 days) the fewest.

There are some positive signs, however, including 38 pending sales. This group includes 20 single family residences ($956,935 average asking price/$513 per square foot); 15 condominiums ($718,953 average asking price/$558 per square foot) and two duplex/triplex properties ($660,750 average asking price/$417 per square foot). The overall average asking sale price was $778,873 ($496 per square foot).

The pending sale properties had been on the market an average of 89 days.

MOST BUYERS ON THE SIDELINES WHILE SMART BUYERS ARE FINDING GOOD DEALS

It started with the hurricanes that never hit us, then the Red Tide, then the relentless press coverage of slowing sales because of hurricanes that never hit us and Red Tide… then the expanded media coverage of the bad press about the slowing of the market due to hurricanes that never hit us and Red Tide…then add the increases in property insurance due to the hurricanes that never hit us…then add the fact that interest rates started inching up…plus runaway property taxes based on unnatural property value increases driven up by the unnatural buying frenzy in 2004 and 2005.

Most realty offices on Anna Maria Island are reporting significant interest from buyers but not at the current asking prices. With the vast inventory of island properties, many of which have significantly reduced from the original asking prices and still reasonable interest rates, smart buyers are negotiating great deals right now. In these situations, sellers are not loosing money, they are just not profiting as much as they had hoped for.

THE BIG PICTURE

Economists say mortgage interest rates under 7% are considered low and healthy based on our country’s history. Thirty-year fixed rate mortgages have been hovering around 6.6% for several weeks now. This is the same rate level as in October, 2005. Freddie Mac predicts the rate will very slowly inch up but be pretty stable through the rest of 2006.

The graphics at the end of this issue tell a very interesting and encouraging story. The charts show sales activity each of the last eight years from May 1st to April 30th including this year. You will see a steady increase in the sales prices during the first seven years, then an abnormal jump during the last year. You will also see a steady increase in the purchase price per square foot and then the number jumps abnormally this last year. The number of sales is what fluctuates the most. It was high just before the 9/11 attacks followed by a significant dip. The year ending 4/30/2005, the number of sales spiked abnormally. If you draw a line through the entire graph, the numbers for the last 12 months are right about on average.

The number of sales in the last four months has been abnormally low compared to the same period of the previous two years. Most experts say the drop-off is a result of a combination of the reluctance of buyers wondering if prices are going to drop significantly and the reluctance of sellers to accept the fact that the market is correcting itself after the abnormal spike in sales prices of the last year or so. Most new listings since the first of the year were priced based on the assumption the rate of increase in sales prices would continue its upward spiral but the drop-off in the number of sales is sending a clear message from buyers. Most professionals involved with the real estate business are predicting this adjustment period will end soon and the market will stabilize by summer’s end, so long as Red Tide is minimal and we do not see a repeat of last year’s hurricane activity; cross your fingers!

Here are the hard numbers:

• Ending 4/30/1999
• No. of sales: 195
• Average purchase price: $199,000.
• Price per sq. foot: $136.

• Ending 4/30/2000
• No. of sales: 282
• Average purchase price: $244,000.
• Price per sq. foot: $155.

• Ending 4/30/2001
• No. of sales: 311
• Average purchase price: $280,000.
• Price per sq. foot: $173.

• Ending 4/30/2002
• No. of sales: 243 (unnatural dip)
• Average purchase price: $342,000.
• Price per sq. foot: $223.

• Ending 4/30/2003
• No. of sales: 286 (starting back up)
• Average purchase price: $398,000.
• Price per sq. foot: $264.

• Ending 4/30/2004
• No. of sales: 344 (frenzy starts)
• Average purchase price: $488,000. (unnatural jump)
• Price per sq. foot: $313.

• Ending 4/30/2005
• No. of sales: 419 (major spike)
• Average purchase price: $586,000. (unnatural increase but consistent with 2003 and 2004)
• Price per sq. foot: $389.

• Ending 4/30/2006
• No. of sales: 353 (significant drop-off but about the same as 2004)
• Average purchase price: $728,000. (still off the charts)
• Price per sq. foot: $497.

This illustrates we are in a market that, on the one hand, shows unnaturally high purchase prices and per sq. foot prices. But, on the other hand, the number of sales is in line with the historic averages of the last eight years. From 4/30/2003 through 4/30/2005, sale prices consistently increased about $100K annually. If that had continued into the last year the prices should have been about $680,000. The average prices are about $48,000. higher than that. No wonder the number of sales has dipped.

No one has a crystal ball, but if the natural purchase price for the next year ends up at an average of about $780,000, it would be consistent with the average annual increases of the previous nine years. This would be only a $52,000 average increase form where we are now; about a 7% increase. Common sense would say buyers would come back and the market should get back on track.

Sellers…If you bought property during the reporting period ending 4/30/2005 for $586,000, the trend over the last eight years says you should expect to get about $780,000. If you purchased during the reporting period ending 4/30/2006 for $728,000, the same trend says you will also get about $780,000. After selling expenses and carrying costs you might break even. If the trends continue, you will be in a much better position to wait another year.

SINGLE FAMILY RESIDENCES OVERVIEW

While only six single family residences sold in April 2006, the average sale price was an amazing $1,845,833. ($910.00 per square foot). This compares with an average sales price of $733,993.74 ($523.57 per square foot) for the 19 single family residences sold in April 2005. High end sales dominated the market, with just one property below $500,000; another sold for just under $1 million ($990,000.). The highest priced property (102 79th St., Holmes Beach) fetched $3.7 million. Another (803 North Shore Drive, Anna Maria) sold for $2.8 million.

In March ‘06, there were six single family residential sales, with the average listing price just over $1 million and the average sale price $969,857. High sale was $2,391,000. (306 Church Ave., Bradenton Beach).

In March ‘05, 21 single family residences were sold, at a dramatically lower average sales price–$745,0000 ($428 per square foot).

February ‘06 single family residence sales totaled four; again, the average sales price was over $1 million ($1,217,225.) While the February ‘06 figure is down from the 11 SFR sales recorded in February ‘05 and the ten SFR sales reported in February ‘05, the average sales price is up dramatically–from $662,681.82 (February ‘05) and $522,890. (February ‘04).

The market for single family residences has held up better than the market for condominiums, with a total of 16 SFRs sold in the February-April ‘06 period. In contrast, only ten condos sold in that three month period, with most of that activity in March–seven sales in 2006 versus 23 in March 2005.

CONDOMINIUMS OVERVIEW

There was just one condominium sale in April 2006, for $310,000. In April 2005, 14 condos sold, with the average sale price $692,492.86 ($483.17 per square foot).

The March 2005 condo sales figure is likely a spike, however, since there were just eight condo sales in March 2004, not that different from this March’s figure of seven.

In February 2005, ten condos were sold, one for $1,635,000 and the other nine averaging $515,000.

During the February-April 2006 period, there were no commercial sales; three duplex sales and three lot sales.

Single Family Residence Sales, April 2006

102 79th St., Holmes Beach, 3BR/3.5BA, over one acre on gulf, inground pool and extensive decking, 1950 sq. ft. Built 1961…$3,700,000.

803 North Shore Drive, Shore Acres, Anna Maria, 4BR/3.5BA, gulf front home, attached four car garage, 4,993 sq. ft. Built 1992…$2,800,000.

111 Sycamore Ave., Anna Maria, 3BR/2BA, full/partial gulf view, attached carport/detached garage, 1,204 sq. ft. Built 1976…$1,875,000.

406 N. 21st Place, Ilexhurst, Bradenton Beach, 3BR/2BA, full bay view, boat lift/davit, private dock, attached carport/attached garage, 1742 sq. ft. Built 1972…$1,275,000.

210 Palmetto Ave., Anna Maria, 4BR/4BA, heated inground pool, spa/hot tub, attached two car garage, 2,528 sq. ft. Built 1998…$990,000.

214 Palm Ave., Anna Maria, 3BR/2BA, near beach and shops, room for pool, attached carport, 1,349 sq. ft. Built 1973…$435,000.

Single Family Residences, March 2006

3104 Avenue F, Ilexhurst, Holmes Beach, 3BR/2BA, on gulf, room for pool, attached three car garage + drive space, 2,094 sq. ft. Built 2003…$2,391,000.

810 North Shore Drive, Shore Acres, Anna Maria, 5BR/4BA, partial gulf view, across street from Bean Point, attached four car garage plus drive space, 2,896 sq. ft. Built 1991…$1,300,000.

103 Seagrape Lane, Wells Terrace, Anna Maria, 2BR/1BA, full gulf view, attached carport + drive space, 1,221 sq. ft. Built 1951…$1,285,000.

212 77th St., Bay Palms, Holmes Beach, 4BR/2BA, attached two car carport + drive space, two blocks to gulf, 2,304 sq. ft. Built 1954…$660,000.

306 Church Ave., Azure Shores, Bradenton Beach, 2BR/1BA, partial bay view, no covered parking, 783 sq. ft. Built 1949…$390,000.

440 63rd St., Seaside Gardens, Holmes Beach, 1BR/1BA, on canal, private dock attached two car carport, 756 sq. ft. Built 1962…$375,000.

Single Family Residences, February 2006

528 74th St., Bay Palms, Holmes Beach, 4-5BR/3BA, inground pool, open water views of Tampa Bay, dock, attached two car garage, 4,000 sq. ft. Under construction…$2,200.000.

423 Magnolia Ave., Bikini Bay Estates, Anna Maria, 3BR/2BA, on canal, close to bay and beach, 1,643 sq. ft. Built 1972…$834,000.

108 Willow Ave., Anna Maria, 2-3BR/2BA, steps to gulf beach, single attached garage + drive space, 1,216 sq. ft. Built 1947…$800,000.

116 78th St., Holmes Beach, 2-3BR/1BA, private screened lanai, attached one car garage + drive space, 1,266 sq. ft. Built 1953…$702,500.

Condominium Sales, April 2006

117 N. 7th St. #9, Bradenton Beach, 2BR/1BA, pool, partial bay view, BBQ/picnic, 729 sq. ft. Built l1973…$310,000.

Condominium Sales, March 2006

7322 Gulf Drive #11, La Casa Costiera, Holmes Beach, 3BR/3BA, heated pool, BBQ/picnic, attached two car garage + guest parking, 2,016 sq. ft. Built 2004…$1,475,000.

303 58th St. #A, Holmes Beach, 3-4BR/3BA, attached two car garage + drive space, 2,300 sq. ft. Under construction…$815,000.

6300 Marina Drive #10B, Holmes Beach, 3BR/2.5BA, attached two car garage + drive space, 1,875 sq. ft. Built 2005…$645,000.

3801 East Bay Drive #209, Sunbow Bay, Holmes Beach, 2BR/2BA, heated pool, tennis, attached carport, full bay view, dock, fishing pier, 1,146 sq. ft. Built 1981…$445,000.

600 Manatee Ave. #218, Westbay Cove, Holmes Beach, 2BR/2BA, partial bay view, heated pool, tennis, no covered parking, 1,179 sq. ft. Built 1977…$407,500.

1801 North Gulf Drive #192, Runaway Bay, Bradenton Beach, 2BR/2BA, full bay view, heated pool, tennis, no covered parking, 1,080 sq. ft. Built 1978…$400,000.

1801 North Gulf Drive North #222, Runaway Bay, Bradenton Beach, 1BR/1BA, overlooking pond, heated pool, BBQ/picnic, 691 sq. ft. Built 1978…$305,000.

Condominium Sales, February 2006

6406 Gulf Drive #6, L’Plage, Holmes Beach, 3BR/2.5BA, gulf front unit, heated pool, spa/hot tub, attached two car garage + other parking, 2,450 sq. ft. Built 2003…$1,800,000.

120 52nd St., Holmes Beach, 2BR/2BA, building completely renovated in last two years, courtyard/patio, no covered parking, 1,100 sq. ft. Built 1973…$435,000.

Duplex Sales, April 2006

104 S. 7th St., Bradenton Beach, 2BR/1BA + 1BR/1BA, close to beach, garage. Built 1954…$545,000.

Duplex Sales, February 2006

216 Magnolia Ave., Anna Maria, 2BR/1BA +1BR/1BA, family owned duplex, steps from gulf beaches. Built 1968…$700,000.

204 Tarpon St., Anna Maria, 2BR/1BA + 2BR/1BA, turnkey furnished, walk to gulf and bay. $635,000.

Lot Sales, March 2006

3715 Gulf Drive, Casanas, Holmes Beach. $800,000.

121 47th St., Holmes Beach, 100X100, partial gulf view, walk to beach. $666,150.

Island Vacation Properties Pending Sales

102 36th St., Holmes Beach, Palm Gables Condominiums. New construction, luxury residences to be complete in the first quarter of 2006. 3BR/3 1/2 BA, 2445 SF under roof. Direct beach front unit with top of the line amenities and design. 9 1/2 foot ceilings, large lanai, crown moldings, elevator, new heated pool…$1,950,000. Contact: Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).

104 36th St., Holmes Beach, Palm Gables Condominiums. New construction, luxury residences to be complete in the first quarter of 2006. 3BR/3 1/2 BA, 2435 SF under roof. Direct beach front unit with top of the line amenities and design, large lanai, 9 1/2 foot ceilings, crown moldings, elevator, new heated pool…$1,550,000. Contact Mel Neely (941-809-5565).

110 72nd St., Holmes Beach. West of Gulf Dr. 1890 SF, triplex on 100′ x 100′ lot. Heated pool. Concrete block construction. Expand and renovate or tear down and build large duplex. 200 feet to beach…$1,095,000. Contact: Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).

2502 to 2510 Avenue C, Bradenton Beach. Very rare! Five contiguous duplex building lots 5000 SF each, some will have Gulf views. A builders dream. 200 feet to beach…$2,305,000. Lots could be bought separately starting at $459,000. Contact Ted Schlegel (941-518-6117) or Barry Gould (941-448-5500).

Island Vacation Properties Active Listings

529 72nd St. Holmes Beach. Spectacular 3BR/2BA, waterfront home with heated pool and spa with beautiful view. Spacious 11760 SF lot has the preferred southern exposure overlooking Bimini Bay. A new seawall, 80 Ft dock and 2 boat lifts. It is truly a boater’s paradise. Heated pool and spa with beautiful views. Recently updated throughout and impeccably landscaped… $1,695,000. Contact Maggie Plath at 941-920-6505.

6408 Gulf Drive, L’ Plage Condominium, Holmes Beach. No other island condo is more luxurious! Directly overlooking the Gulf beach. Heated pool, in-ground hot-tub, secure garage parking (2 spaces), elevator, lush landscaping with 3 bedrooms and 2.5 baths, completely turn-key furnished. Outstanding rental history and would make a great second home….$1,989,000. Contact Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).

102 4th St., Bradenton Beach. Gulf view duplex. 2 BR/2BA upstairs with new deck facing beach. 1BR/1BA with extra bonus room downstairs. Newly painted…$538,000. Contact Ted Schlegel (941-518-6117) or Barry Gould (941-448-5500)

1708 N Gulf Dr., Unit D, Bradenton Beach Club. Bradenton Beach. Direct beach front luxury condominium with 2-3 bedroom and 2 baths. Screened lanai overlooking heated pool and the Gulf of Mexico…$1,895,000. Contact Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).

2311 Canasta Dr, Bradenton Beach. Single family cottage, one house back from the bay. Currently a 1BR/1BA and has an annual rental in place. This is a great lot zones R2 to build a new home or possibly a new duplex in a desirable location, two blocks to the beach…$575,000. Contact Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).

2110 Avenue B, Bradenton Beach. Adorable duplex with 2BR/2Ba plus 1BR/1BA units completely renovated inside and out this year. 1622 SF, ground level, turnkey furnished with lush landscaping and major water element.. Great rental property…$648,000. Contact Ted Schlegel (941-518-6117).

2716 Gulf Drive, Unit 106, Holmes Beach, Gulf Cabins Condominium. Direct beachfront 2 BR/2 BA, condo with heated pool, covered parking and screened Lanai. Turnkey furnished, 1155 under A/C… $949,000. Contact Mel Neely (941-809-5565).

1000 Gulf Dr. Unit 5, Bradenton Beach. Beach House Resort. Completely refurbished 1BR/1BA vacation condo directly on the beach is in the center of where the action is and will generate great rental income when the project is completed. Turnkey furnished and heated spa/pool. $510,000. Contact Mel Neely (941-809-5565).

1000 Gulf Dr. Unit 8, Beach House Resort. Completely refurbished 1BR/1BA vacation condo directly on the beach is in the center of where the action is and will generate great rental income when the project is completed. Turnkey furnished and heated spa/pool. $520,000. Contact Ted Schlegel (941-518-6117).

1000 Gulf Dr. Unit 9, Beach House Resort. Completely refurbished 1BR/1BA vacation condo directly on the beach is in the center of where the action is and will generate great rental income when the project is completed. End unit with great south view as well as west view. Turnkey furnished and heated spa/pool. $545,000. Call Island Vacation Properties at 941-778-1000.

3701 5th Ave, Unit 1, Holmes Beach, Gulfview Townhouses. 2BR/2BA 1431 SF unit with heated pool and spa. Under building parking and very close to beach. No rent restrictions and long history of income. Built 1982. $538,000. Contact Mel Neely (941-809-5565).

1007 Gulf Drive, Summer Sands Condominiums, Bradenton Beach. Enjoy a wonderful view of the Intercoastal Waterway from this 2BR/2BA. Master suite is a loft above the living room. Just across the street from the Gulf beach, this end unit features garage parking, elevator, and heated bay front pool…$699,000. Contact Ted Schlegel (941-518-6117) or Barry Gould (941-448-5500).

1453 Gulf Drive, Bermuda Bay Club, Bradenton Beach, Watch the sailboats on the Gulf of Mexico from both the living room and the Master suite balconies or enjoy “sittin’ on the dock o’ the Bay”. This 3BR/2.5BA townhouse with private 2-car garage, and heated pool is turn-key furnished. A sensational second home or high income-producing rental property….$699,000. Contact Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).

105 39th Street, Unit 2, Holmes Beach. 1BR/1BA condominium in one of the most popular direct beach front resorts, “Anna Maria Island Beach Resort.” This unit is being sold completely renovated and features a private Gulf view patio, large heated pool, gazebo, lush landscaping, new furnishings and centrally located. On site management helps generate nearly $50,000. annually. Incomparable ROI…$499,000. Contact Barry Gould (941-448-5500) or Ted Schlegel (941-518-6117).