John vanZandt

It's true, the days of multiple offers are back!

But maybe it's not what you think.

And it's true for only SOME properties.

Here's a personal example. Recently, a duplex at the north end of Anna Maria Island that I helped another Realtor purchase as an investment in 2005 for $575,000, came back on the market as a bank-owned property. The former owner had made some improvements inside, painted the exterior and did some good landscaping work. Likely investment income at seasonal rentals of about $750 to $1000 per week per side would be around $40,000 gross. At the offered price of $324,900, it was a VERY good deal.

So I sent the MLS to my best out-of-town investment-type clients, who said they liked it, and would look when they came to the Island five days hence. My suggestion was to offer sight-unseen, with the normal contingencies in place, plus one based upon the buyer's absolute acceptance of a personal inspection, to be had within one week.

Long story short, they did NOT take my suggestion, and then, when they did see it five days later, offered $318,000, despite my advice to offer at least $325,000.

Turned out an offer was accepted two hours before my submission, at the eventual selling price of $330,000. Such a great deal, at 43% less than the price four years ago!

Here's an article that illustrates the situation as it exists today, courtesy of the Sarasota Herald-Tribune:

http://www.heraldtribune.com/article/20090507/ARTICLE/905071092/2055/NEWS?Title=Low-home-prices-spur-return-to-bidding-wars

For more information on how prices and sales are going on Anna Maria Island, go to my website an check out the stats:

http://www.calltheislanders.com/myblog or

http://www.calltheislanders.com/salesinfo

Or you can email me at John@calltheislanders.com

Okay, so we don't want to brag, but we're suddenly hot as -- well, maybe hot as toast! -- here on Anna Maria Island. With a super tourism season mostly behind us, there has been tremendous interest on the part of frequent visitors in owning a part of our island paradise. At Island Real Estate, we've had 16 new contracts this month. Most years, we average maybe 220 sales on the entire island, of all kinds of properties, so for us to have this kind of production is pretty amazing. So who is buying? We're finding the old stand-bys are the most likely to buy. These are people from the MidWest or NorthEast who are thinking ahead to their retirement days. They want a nice spot near our sugar-white beaches, and feel reasonably comfortable that if they get a good enough deal, that NOW is the time to buy. Frankly, they're right. Even if the market dips a bit in the future, a great deal today is worth two slightly more expensive birds in the bush later on. Especially if there's a loan in the picture. Rates are already inching up a bit. So are we pleased? You bet. And is this one little hot spot in a dismal marketplace? Well, real estate is extremely local, as we all know, but there are other signs of life at least here on Florida's West Coast. Want more? My sales results will be coming out early next week. Go to my blog for personal opinion, at www.calltheislanders.com/myblog or to get the facts, go to www.calltheislanders.com/salesinfo. Or you could email at john@calltheislanders.com or call me at 941-685-8822.

Today's Sarasota Herald-Tribune notes results of the National Association of Realtors survey on second homes sales and the big drop in vacation home property sales as well, information which can be extrapolated to the continuing slower-than-usual sales on Anna Maria Island and other West Coast Florida barrier islands. Second and vacation homes are traditionally a big source of sales on Anna Maria and other islands, particularly because vacationers come down during the winter season for a week or a month and really like the weather, the beaches and the laid-back feel of small town at the beach. This year, although there are record numbers of tourists on the island, and rentals, restaurants and shops are doing very well, sales have not matched prior years. Now we know it's not just us. For the whole story, go to: http://www.heraldtribune.com/article/20090331/ARTICLE/903311034 And for sales results on anna Maria Island, go to: http://www.calltheislanders.com/myblog Call me anytime on my cell: 941-685-8822 or email me at John@CallTheIslanders.com John

In Holmes Beach on Anna Maria Island, there are two main areas where homes are located on deep-water canals, with direct access to Tampa Bay and the Gulf of Mexico.

One area is knows as Bay Palms, the other, a more exclusive community called Key Royale, has a higher-end reputation. Many who own boats, from skiffs to good-sized sailboats, make these homes their residences.

And like so many other properties in these perilous times, some have lost value, though perhaps not as much as in some other areas on Florida's West Coast. Others are back at about the highest prices they fetched in 2005!

Here's a chart that shows the last several years of sales data in BayPalms, based upon the average sold price per square foot, taken from the Mid-Florida Regional Multiple Listing Service.

Selling Price Analysis
Bay Palms Area
Canal Homes
2005 through 2008
Based upon Average Price per Square Foot
By John van Zandt
Source: Manatee Multiple Listing Service
2008	Listing $	SqFt	Listing Pr/SqFt	DOM	Sale $	Selling Pr/SqFt	Change Prior Year
Sales 13	$716,992	1892	$389	353	$630,307	$340	-0.09
2007
Sales 17	$823,511	1916	$410	273	$739,191	$374	-0.24
2006
Sales 4	$1,468,250	2674	$533	135	$1,349,000	$494	0.01
2005
Sales 17	$960,023	1937	$509	111	$922,957	$489

We can see that after the heyday of 2006, when prices were at their peak, that we've seen a steady decline through 2008. Note that with only four sales in 2006, each of which was, on average, much larger than the norm, with prices to match, that the data shows an aggregate decline in price per square foot of about 31 percent.

On the other hand, Key Royale, which offers more homes with big-water views of Tampa Bay, has seen a recent resurgence in value. In the year just ended, a complete rebound in average selling price per square foot has taken place. The total loss in value is only about five percent!

Selling Price Analysis
Key Royale
Canal Homes
2005 through 2008
Based upon Average Price per Square Foot
By John van Zandt
Source: Manatee Multiple Listing Service
2008	Listing $	SqFt	Listing Pr/SqFt	DOM	Sale $	Selling Pr/SqFt	Change Prior Year
Sales 16	$1,180,931	2372	$477	356	$1,014,968	$414	0.24
2007
Sales 10	$802,200	2125	$371	242	$713,900	$334	-0.23
2006
Sales 7	$1,201,142	2348	$485	203	$1,062,142	$434	0.03
2005
Sales 11	$699,745	1631	$440	86	$675,854	$423

It takes longer to sell a Key Royale home, averaging just about a year, but the values are still there sellers trying to reach people who need a nice home for themselves and their boat.

If you'd like to discuss these sales results, and the surprising news contained therein, send me an email at John@calltheislanders.com

Or if you want more insightful data like this, go to my website: www.CallTheIslanders.com and check out my blog there.

Thanks,

John

There's one bright spot in the economy of Southwest Florida: Anna Maria Island tourism.

While the real estate market remains relatively sluggish, and prices continue to be depressed, the Island is really hoppin with winter visitors, weekly renters and mainlanders, including snowbirds who live (at least temporarily) in Bradenton, Palmetto and points east and north, like Tampa and Orlando.

They are clogging the roads, filling the public beaches, and making it tough to get a dinner reservation at one of the popular restaurants, or just about ANY restaurant, for that matter.

And that's good news, for everybody, especially Realtors on the Island. Because we all know that people who come to Anna Maria, love Anna Maria, and many eventually buy on Anna Maria.

So we're ready for the rebound. Prices rose higher, faster than just about anywhere else in Florida. And they dropped faster and lower, too. Right now, I lowered the price on a condo in a Gulf-front complex, with two bedrooms, two baths, a den and a peek of the Gulf, down to $349,000. At one time, two years ago, it was listed for sale at $635,000.

Are there deals? You bet! And the Manatee County Tourism Development Council is thinking it just might be time to snatch a tiny bit more marketing money from our happy visitors. For some news of that event, read what they said in today's Bradenton Herald.

http://www.bradenton.com/opinion/story/1274566.html

Wish us all well.

John