The Anna Maria Island Sun Newspaper

Vol. 14 No. 26 - April 23, 2014

REAL ESTATE

Vacation home sales surge

 

Discretionary is mostly defined as optional or flexible, as in I have the option to purchase a Mercedes Benz or I have the option to purchase a Kia. Truth is you may not actually have the option if your discretionary funds only allow for a Kia. Fortunately for Florida, a recent survey conducted by the National Associations of Realtors confirms what a lot of us on Anna Maria already knew, a lot of people have a lot more Mercedes Benz money than we’ve seen in recent years.

The National Association of Realtors’ (NAR) annual Investment and Vacation Home Buyers Survey was published on April 2.The survey, which covered 2,008 households, covers existing and new home transactions in 2013 and concluded that vacation home sales jumped 29.7 percent to an estimated 717,000 last year from 553,000 in 2012. Although this rapid jump proves that the value of residential real estate has certainly changed in just a few years, the 2013 numbers were still well short of the high point of nearly 1.1 million vacation homes purchased in 2006, the high water mark of the real estate market.

According to Lawrence Yun, chief economist for the NAR, this growth is a direct result of the improvement in equity markets. The stock market gains last year and rising home values are creating confidence in buyers who are feeling more wealthy and more willing to take a chance on something totally discretionary, like a vacation home.

Vacation home sales accounted for 13 percent of all transactions last year up from 11 percent in 2012, which is the highest market share since 2006. The median vacation home price was $168,000 in 2013, up 12.5 percent from $150,000 in 2012. In addition, all cash purchases remain common for vacation home purchases at 38 percent in 2013, and vacations buyers who did seek financing typically put 30 percent down.

Also part of the NAR’s survey was the report that investment purchases fell below the elevated levels seen in the previous two years. The market share of investment properties fell to 20 percent in 2013 from 24 percent in 2012. Again, many investment purchases were all cash with the NAR reporting that 46 percent of investment buyers paid cash. Economists indicated that investment buyers slowed their purchasing in 2013 because of an increase in pricing and a decline in distressed properties, something that was predictable.

So where are all these vacation homes being sold and why? The South accounted for most vacation home sales at 41 percent, next was the West with 28 percent. The Northeast came in at 18 percent and the Midwest at 14 percent. Not that anyone needs to tell us but Florida is at the forefront of the South’s vacation home market.

Mild weather, of course, is one of the driving factors in where buyers purchase vacation homes, and according to the NRA survey, 87 percent want to use the property for family vacations. Thirty-one percent of vacation home buyers plan on using the property as a primary residence in the future, 28 percent want to diversity their investments, 23 percent plan to rent the property and 22 percent intend it for use by a family member, friend or relative.

I pick “discretionary” as the word for this past winter season. Based on the number of home sales and the increase in listing and selling prices on Anna Maria buyers are awash in discretionary funds and are definitely feeling the “wealth effect” of a real estate market that is nothing short of slamming.

Real Estate Transactions
Real estate transfers as of October 1-31, 2013
Sponsored by Alan Galletto Island Real Estate

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

Anna Maria

01/03/2014 1,400,000 1,400,000 107 Beach Ave. 2789 150x100 4 Br/3 Ba SFR
01/06/2014 895,000 800,000 806 Gladiolus St. 2250 69x100 3 Br/3 Ba SFR
01/06/2014 317,000 470,549 205 Elm Ave. 1203 52x110 2 Br/2 Ba SFR Reo
01/06/2014 749,000 683,000 517 Magnolia Ave. 2219 75x115 4 Br/2.5 Ba SFR
01/10/2014 989,000 910,000 213 Spruce Ave. 937 105x100 2 Br/2 Ba SFR
01/22/2014 1,495,000 1,450,000 203 Spruce Ave. 696 2 Br/1 Ba SFR
01/24/2014 850,000 849,900 113 Gull Dr. 2447 91x100 3 Br/2 Ba SFR
01/29/2014 522,000 465,000 8806 Gulf Dr. 936 50x100 2 Br/2 Ba SFR
01/30/2014 510,000 502,000 524 Blue Heron Dr. 1653 3 Br/2 Ba SFR
01/30/2014 1,345,000 1,325,000 214 Spring Ave. 3189 52x145 6 Br/5.5 Ba SFR

Bradenton Beach

01/31/2014 425,000 385,000 252 17th St # 252 1268 2 Br/2 Ba Condo
01/02/2014 289,000 282,000 1801 Gulf Dr N # 238 1080 2 Br/2 Ba Condo
01/31/2014 635,000 617,500 2300 Avenue B 2832 50x100 4 Br/4 Ba SFR
01/16/2014 259,900 259,900 2515 Avenue C # A 1584 50x100 Inc.
01/31/2014 635,000 617,500 2300 Avenue B 2832 50x100 Inc.
01/10/2014 297,777 290,000 200 22nd St . 50x100 Vac.

Cortez

01/13/2014 439,000 400,000 4207 126th St. W. 3412 100x100 4 Br/3 Ba SFR

Holmes Beach

01/02/2014 330,000 315,000 5808 Gulf Dr. # 206 912 2 Br/2 Ba Condo
01/08/2014 375,000 330,000 6250 Holmes Blvd. # 65 1206 3 Br/2 Ba Condo
01/14/2014 392,900 366,250 6400 Flotilla Dr. # 96 985 2 Br/2 Ba Condo
01/16/2014 359,900 347,000 600 Manatee Ave. # 136 1179 2 Br/2 Ba Condo
01/23/2014 318,000 283,000 201 35th St .# 5 630 1 Br/1 Ba Condo
01/27/2014 279,000 265,000 3801 E Bay Dr. # 108 1121 2 Br/2 Ba Condo
01/27/2014 379,000 370,000 6200 Flotilla Dr. # 262 1266 2 Br/2 Ba Condo
01/29/2014 219,900 208,000 3000 Gulf Dr. # 6 756 1 Br/1 Ba Condo
01/03/2014 689,000 671,750 117 51st St. 1536 3 Br/2.5 Ba SFR
01/09/2014 565,000 535,000 502 83rd St. 1728 3 Br/3 Ba SFR
01/10/2014 1,049,000 950,000 509 68th St. 2546 80x102 3 Br/2 Ba SFR
01/10/2014 896,000 725,000 313 61st St. 2374 4 Br/3.5 Ba SFR
01/10/2014 799,000 772,000 213 65th St. 2184 3 Br/2.5 Ba SFR
01/23/2014 399,000 390,000 2819 Avenue B 2332 3 Br/2 Ba SFR
01/24/2014 450,000 450,000 113 31st St. 1682 50x105 3 Br/2 Ba SFR, Reo
01/24/2014 350,000 325,000 502 Bayview Dr. 1214 75x120 3 Br/2 Ba SFR
01/29/2014 598,000 565,000 5606 Holmes Blvd. 1040 3 Br/2 Ba SFR
01/29/2014 775,000 775,000 4118 5th Ave. 2786 6 Br/3.5 Ba SFR
01/31/2014 974,900 907,930 637 Key Royale Dr. 2422 100x151 4 Br/3 Ba SFR
01/13/2014 339,900 275,000 4501 Gulf Dr. # A 1325 1554x800 Inc.
01/21/2014 500,000 450,000 212 Haverkos Ct. 108x110 Vac.

Source: Manatee County Property Appraiser’s Office


AMISUN ~ The Island's Award-Winning Newspaper