The Anna Maria Island Sun Newspaper

Vol. 12 No. 48 - September 12, 2012

REAL ESTATE

Rebound? Yes, no, maybe

 

Is it time to buy or is it time to sit on your hands and your checkbook? The final decision about the right time to buy real estate is ultimately up to you, but a little well placed advice could make the decision, making process less stressful.

Warren Buffett once said “be fearful when others are greedy, be greedy when others are fearful,” which is why Uncle Warren is betting on a continued recovery in the housing market. Of course Buffett is investing in big ticket items like real estate investment trusts, shopping malls and apartment buildings but the principal applies to small investors and individuals considering residential properties. If everyone else is afraid to commit to housing it stands to reason according to Buffet that it’s a close to a perfect investment.

The real estate market may not be perfect but it is improving based on the latest national real estate statistics. U.S. Home prices in June showed their first year over year increase in almost two years. According to the Case-Shiller Index of 20 major metropolitan areas home prices rose by 0.5 percent in June compared with a year ago. And although home prices are still down by almost 31 percent from their 2006 peak, this ended a 20 month streak of declines returning real estate values back to 2003 levels.

In addition, The National Association of Realtors said its seasonally adjusted index of pending sales of existing homes increased 2.4 percent in July from June. Starts of new home construction also rose 6.9 percent in June. All of this is pointing to a strong spring selling season in most parts of the country and certainly a strong winter selling season in Florida.

As previously reported the rental market is very strong. In regions around the country it’s still cheaper to buy than rent. If you buy a home or an investment property chances are that the rent will cover the cost of financing at today’s still very low rates, and with real estate indicators pointing up you may also see the property appreciate.

Warren Buffett notwithstanding, any investment has some risk attached and your pockets are probably not as deep as The Oracle of Omaha’s is. We still have plenty of uncertainty in the real estate market with approximately 30 percent to 50 percent of existing mortgages in the country underwater. These homeowners will eventually need to decide to either keep paying their mortgage and hope prices will improve or walk away. If they walk away it will most certainly put downward pressure on home prices.

The economy is still a lingering fear that could crush the real estate recovery. Bad economies with high unemployment spell trouble for real estate. Potential buyers must feel secure that they will continue to have a job in order to feel comfortable moving forward and qualify for financing. That being said at this moment in time real estate presents an attractive long term investment for both homeowners and investors considering prices and financing rates.

So is this the time for you to be greedy and take the plunge? Unfortunately the definitive answer to that question will only be found within yourself as long as you’re unafraid to make a decision.

Real Estate Transactions
Real Estate Transfers from June 1 to June 30, 2012
Sponsored by Alan Galletto Island Real Estate

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

07/31/2012 679,000 679,000 115 Mangrove Ave. # A&B 1968 50x110 6Br/4Ba Inc.
07/10/2012 430,000 427,000 226 Gladiolus St. 1708 87x100 3Br/2Ba SFR

Bradenton Beach

07/13/2012 675,000 625,000 2600 Gulf Dr. N. # 17 1179 2 Br/2 Ba Condo
07/23/2012 115,000 115,000 1603 Gulf Dr. N. # 29 380 1 Br/1 Ba Bank Owned Condo
07/27/2012 285,000 275,000 1001 Gulf Dr. S. # 1 896 2 Br/1 Ba/2 Half Baths Condo
07/10/2012 289,000 260,000 100 12th St. N. 929 2 Br/2 Ba SFR
07/30/2012 325,000 280,000 1431 Gulf Dr. N.# 21 1524 3 Br/2.5 Ba Short Sale Th
07/11/2012 139,900 132,500 2501 Gulf Dr. N. # 102 416 1 Br/1 Ba Com

Cortez

07/16/2012 679,000 565,620 12313 Baypointe Terr. 2535 3 Br/ 3 Ba SFR

Holmes Beach

07/17/2012 425,000 425,000 207 69th St. # A 1948 70x110 4 Br/3 Ba Half Condo
07/03/2012 199,900 187,450 3607 E. Bay Dr. # 110 1040 2 Br/2 Ba Condo
07/08/2012 172,900 171,000 5400 Gulf Dr. # 24 810 1 Br/1 Ba Bank Owned Condo
07/10/2012 399,900 375,000 6006 Gulf Dr. # 112 1154 2 Br/2 Ba Condo
07/16/2012 449,000 425,000 319 64th St. # 8b 2001 3 Br/2.5 Ba
07/17/2012 249,900 249,900 3705 E. Bay Dr. # 206 1146 2Br/2 Ba Condo
07/19/2012 207,000 185,000 6300 Flotilla Dr. # 71 1023 2Br/2 Ba Condo
07/27/2012 350,000 315,000 4200 Gulf Dr. # 204 1008 2Br/2 Ba Short Sale Condo
07/31/2012 319,900 298,000 4255 Gulf Dr. # 122 1254 2Br/2 Ba Condo
07/12/2012 300,000 240,000 213 84th St. 2173 3 Br/2.5 Ba Short Sale SFR
07/20/2012 759,000 692,000 622 Dundee Ln. 2368 95x115 3 Br/2 Ba SFR
07/20/2012 419,000 407,500 303 62nd St. # B 1200 3 Br/2 Ba SFR
07/23/2012 888,000 825,000 6405 Gulf Dr. 2876 66x100 3 Br/2.5 Ba SFR
07/25/2012 569,900 525,000 109 75th St. 1819 3 Br/2.5 Ba SFR
07/27/2012 849,000 800,000 207 70th St. 920 90x102 4 Br/4 Ba SFR
07/20/2012 549,000 529,000 108 77th St. 1839 68x80 3 Br/2 Ba SFR
07/31/2012 310,000 290,000 309 62nd St. 928 75x101 2 Br/1 Ba SFR
07/17/2012 425,000 364,000 3803 E Bay Dr # 3a 2354 5 Br/3 Ba Th
07/13/2012 259,900 237,000 3008 Gulf Dr. 1560 50x105 4 Br/2 Ba Inc
07/05/2012 489,000 415,000 3014 Avenue E 50x100 Vac

Source: Manatee County Property Appraiser’s Office


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