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Vol. 14 No. 37 - July 9, 2014

REAL ESTATE

What’s going on in the market?

 

The real estate market is a living, breathing thing, and like all living things, sometimes it doesn’t do what we want or expect of it. But then again, sometimes it does and those are the moment we live for.

Last week the National Association of Realtors reported that sales of existing homes increased 4.9 percent in May from the previous month, but were down from last year. In addition, the median sale price of a home in May was up 5.1 percent from a year ago to $213,400 which sounds like progress, but it was actually the slowest annual gain since March 2012. Much of this slow down is attributed to increased interest rates, a harsh northern winter and generally a less than robust economy.

Another reason the overall market could be having a problem rebounding is the lack of first time buyers giving it a jump start, which had been predicted but never happened. Tight lending standards, higher prices and higher interest rates are keeping first time buyers in rentals or living with parents. First time buyers are an important link in the real estate chain since move-up buyers can’t move if there aren’t any first time buyers to purchase their home.

In addition, recent reports from the Census Bureau, Trulia and Fannie Mae are indicating that baby boomers aren’t moving. The typical pattern of downsizing after the kids are gone isn’t happening, putting another road block in front of improving the overall real estate market. Some of this stagnation is because boomers don’t have as much equity in their homes as they had planned and are holding out for more, and also because they may be locked into low interest rates at a time when rates are increasing.

Another element in the real estate market that has to be thrown into the pot is a drop in short sales reducing inventories. Because of the expiration of the Mortgage Forgiveness Debt Relief Act in December, homeowners are less inclined to accept short sale offers. The Mortgage Forgiveness Debt Relief Act passed in 2007 essentially forgave a portion of the mortgage debt a seller would be required to pay in income tax on the amount forgiven by the lender. Now that the forgiven amount, the difference between the sale price and the outstanding mortgage may be subject to income tax, homeowners would rather not sell than subject themselves to the possibility of thousands of dollars in tax liability.

In view of this less than perfect news, I decided to take a look at the Manatee Association of Realtors’ statistics for the Manatee County island communities. The most recent numbers were from April and are certainly worth noting. The Manatee Association of Realtors defines "islands” as all three of the cities on Anna Maria, Cortez and north Longboat Key.

For April, the median price of single family homes increased from $575,000 in 2013 to $737,000 in 2014. The days on market decreased from 85 in 2013 to 70 in 2014. Certainly the Island statistics represent the high end of Manatee County with properties on Longboat Key pushing the numbers up, but it doesn’t look like we’re experiencing as sluggish a market as much of the country is.

There are few people in America who aren’t invested in some way in the real estate market. We all have to live somewhere, and whether we own our home or rent, the fate of the real estate market can dictate our fate as well – just like all the other living breathing things around us.

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


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