The Anna Maria Island Sun Newspaper

Vol. 13 No. 14 - January 16, 2013

REAL ESTATE

A post Christmas present for homeowners

 

If you’re like most people, by now Christmas 2012 is just a faint haze in the rearview mirror of your life. But whether you know it or not, all homeowners received an after Christmas gift in the form of a little more equity tied up with a nice fat bow.

Everybody in finance and the real estate industry waits for the monthly Standard & Poor’s/Case-Shiller 20 city index of home prices. The report that came out right after Christmas was the strongest since 2006, showing a 4.3 percent increase in residential home prices from September to October of 2012. Even more impressive is that since January, sale prices are up 6.9 percent, which is the largest year to date gain since 2005. These numbers were so good they beat the projected increase for the September to October comparison of 4 percent.

A separate index released the same week by Lender Processing Service, Inc. showed that national home prices were up by 5.2 percent for the year 2012 through October. All of this news is encouraging after there were several previous artificial starts to the real estate recovery, but since spring the market has gained speed and has held on to it. Real estate professionals and economists are optimistic that this is showing a sustained market recovery that appears to really be the turning point this time.

Helping the market along are the continued low interest rates, which are turning some renters into homeowners. With rents steadily going up and fewer rental units available, monthly rental rates are climbing. The monthly average rental rate across the country was $1,044 in October of 2012, which was up 3.7 percent from a year ago. Although banks still have high lending standards with strict appraisals and even stricter income histories for borrowers, they do have money to lend and are promoting home mortgages. In addition, they have been more aggressive at modifying loans and moving potential foreclosaures into sales by approving more short sales.

Also helping fuel the market is a sudden and unexpected low supply of homes available. A combination of homeowners keeping their properties off the market and anemic new home construction are both contributing to record low inventories. Some areas of the country are experiencing multiple offers with properties frequently selling above asking price.

Some of the hardest hit regions in the country analyzed by Case-Shiller show very high increases in selling prices that may be unsustainable going forward with growth rates expected to level off in 2013.

For example, Phoenix, which was 46.2 percent down from the market peak, is now showing a 21.7 percent increase from a year ago. Miami, which was 46.6 percent down from the market peak, is showing an increase from a year ago of 8.5 percent. Detroit, down 37 percent from its market high, is now showing a 10 percent increase from a year ago. And Las Vegas, which was down 57.3 percent from its peak market is showing an 8.4 percent increase from a year earlier.

However, even if the appreciation rates do experience a flattening out, with rents going up and more buyers running after fewer homes, we could still have a very positive outcome for homeowners who are ready to test the waters.

So if Santa didn’t bring you exactly what you wanted on Dec. 25, maybe what Case-Shiller brought you on Dec. 26 has softened the blow. Besides there’s always next year.

Real Estate Transactions
Real Estate Transfers from October 2012
Sponsored by Alan Galletto Island Real Estate

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

Anna Maria

11/05/2012 1,089,000 1,000,000 511 Loquat Dr 2752 85x117 3 Br/2 Ba SFR
11/09/2012 749,000 700,000 108 Willow Ave 1504 50x11 3 Br/2 Ba SFR
11/14/2012 429,000 429,000 516 Magnolia Ave 1401 52x145 3 Br/2 Ba SFR
11/14/2012 575,000 540,000 212 Coconut Ave 1653 52x100 3 Br/2 Ba SFR
11/15/2012 475,000 442,500 771 Jacaranda Rd 1447 52x98 2 Br/2 Ba SFR

Bradenton Beach

11/05/2012 325,000 230,000 301 Church Ave 1344 102x100 2 Br/2 Ba SFR, Short Sale
11/13/2012 399,000 395,000 303 22nd St 50x100 3 Br/2 Ba Inc. 11/16/2012 330,000 320,000 2407 Avenue B 1650 25x100 4 Br/4 Ba Inc.
11/16/2012 597,000 555,000 104 23rd N St 2088 5800 Units Inc.

Cortez

11/29/2012 579,000 560,000 4130 Marina Ct # 511 2307 3 Br/2 Ba Condo
11/20/2012 825,000 825,000 12913 42nd W Ter 4058 5 Br/3Ba SFR Short Sale
11/02/2012 69,000 54,750 12614 Safe Harbour Dr 81x123x61x122 Vac.

Holmes Beach

11/05/2012 325,000 325,000 6200 Flotilla Dr # 242 1458 2 Br/2 Ba Condo
11/09/2012 499,000 445,000 7205 Gulf Dr # North 1032 3 Br/2 Ba Condo
11/20/2012 179,900 165,000 3607 E Bay Dr # 105 976 2 Br/2 Ba Condo
11/30/2012 475,000 465,000 3804 6th Ave # 3804 1725 3 Br/2 Ba Condo
11/07/2012 599,000 520,000 521 74th St 1625 100x110 3 Br/2 Ba SFR
11/07/2012 449,000 443,000 5805 De Palmas Ave 1150 50x101 2 Br/2 Ba SFR
11/16/2012 335,000 305,000 205 Peacock Ln 1653 43x87 4 Br/3 Ba SFR
11/16/2012 499,000 475,000 211 71st St 1344 54x105 2 Br/2 Ba SFR
11/16/2012 489,000 480,000 309 59th St # B 2083 3 Ba/2 Ba SFR
11/20/2012 859,000 790,000 520 Key Royale Dr 3720 100x108 5 Ba/2.5 Ba SFR
11/21/2012 449,000 445,000 5802 Imperiore Ave 1200 48x101 3 Ba/2 Ba SFR
11/23/2012 419,000 398,600 5704 Holmes Blvd 1678 82x117 2 Br/2 Ba SFR
11/26/2012 439,000 430,000 205 77th St # A 900 2 Br/2 Ba SFR
11/29/2012 400,000 415,000 116 81st St 1494 68x80 3 Ba/2 Ba SFR
11/29/2012 585,000 570,000 603 Dundee Ln 1920 3 Ba/2 Ba SFR
11/30/2012 450,000 425,000 312 57th St 1665 3 Ba/2,5 Ba SFR
11/30/2012 469,000 460,000 212 81st St # B 1200 90x90 3 Ba/2 Ba SFR
11/08/2012 389,000 369,000 3007 Avenue E # 2 756 100x105 2 Br/1 Ba Villa
11/08/2012 375,000 375,000 202 64th St # A 1481 67x100 2 Br/2 Ba Inc.
11/09/2012 350,000 320,000 302 60th St 101x107 Vac.

Source: Manatee County Property Appraiser’s Office


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