Island real estate agents predicted a good winter season for the industry. Now John Van Zandt of Island Real Estate in Holmes Beach has sales figures that back up the prediction.
Using figures from the MyFlorida Multiple Listing Service, Van Zandt found total sales for the year ending Feb. 28, 2011, were up 27 percent when compared with the same period last year.
From March 1, 2010, to Feb. 28, 2011, the MLS showed 305 properties sold on the Island compared with 240 for the year ending Feb. 28, 2010.
On the down side for sellers, the average sale price of a single-family home dropped 3.9 percent from the previous year, declining from $518,750 to $498,370, as of Feb. 28, 2011.
The average sale price of condominiums was down 13.3 percent in the 12-month study period, dipping from $337,122 to $291,825.
The sale of multi-family homes, however, showed an average price gain of 4.3 percent.
Van Zandt said the multi-family market is “nearing a reasonable return for investors” and can produce positive cash flows between $15,000 and $18,000 annually.
Many investors are buying potential rentals and replacing aging structures with modern accommodations, he said. He also predicted the sale of rental property would remain good for 2011.
The average price of both single-family homes and condominiums declined in the 12 months from March 1, 2010, to Feb. 28, 2011, but Van Zandt cautioned about using the average price per square foot as an indication of value.
The MLS figures do not include any “sale by owner” properties, Van Zandt noted.
Nicole Skaggs of Big Fish Real Estate in Holmes Beach observed the figures for 2009-10 do not indicate which properties were short sales or bank-owned sales in which the sales price is generally lower than the list price.
For the rest of 2011, Van Zandt predicted a bright future in condominium and multiple-family property sales, but suggested the pace of single-family homes sales might abate somewhat. Still, he noted, there are many bargains in the market at present.
If those single-family homes are on a canal, they are hot properties right now, said Skaggs.
“I recently had an open house for an Island canal home priced under $500,000, and normally would expect five or six couples. I got 14, and they were serious buyers,” Skaggs said.
She noted that two weeks ago there were 10 canalfront homes under $500,000. Now, just eight of those remain.
“Those are bargains and I don’t expect them to last much longer,” she said.
A number of canalfront properties in communities such as Coral Shores, Mount Vernon, Flamingo Cay and San Remo also are good bargains, she said.
Skaggs said short sales and bank sales have slowed on the Island. That could mean that the average selling price will begin to creep upward as the “steals” gradually disappear. There are certainly a lot of people out there looking for deals, she said.
It has been a busy season for Skaggs.
“Just look at all the traffic on the roads. Plus, I’m getting many more walk-ins than normal for the winter and I’ve doubled my e-mail inquiries. There is tons of activity.”
Skaggs also has seen a number of interested buyers from Great Britain and Germany.
“They’ve been doing their research, but are thrilled with what they actually see.”
Jesse Brisson of Gulf Bay Real Estate in Holmes Beach said there’s no surplus of single-family homes on the Island, but condominiums and multi-family dwellings are in demand.
Investors have been “condo-izing” duplexes by fixing them up, then selling them as separate units, he said.
But the inventory of multi-family structures is dwindling, Brisson said. He agreed with Skaggs that a canalfront property under $500,000 is a bargain.
Brisson said the new Harbour Isle condominium project on Perico Island is only going to help Island real estate sales.
“They’re going to bring people here. They are creating a lot of interest in the area and it can only be good for the entire Island real estate industry, and they’re going to work with us to market the property.”
Brisson said he’s already had one caller who asked specifically about Harbour Isle units and the project only opened its models two weeks ago.
“I’m very pleased with the season. Right now, it’s a buyer’s market and there are plenty of values out there for buyers.”
