The Anna Maria Island Sun Newspaper

Vol. 15 No. 33 - June 10, 2015

REAL ESTATE

The potential of a mass frenzy

 

I fear we’re all coming down with a temporary madness. Is it something in the water, is it love or is it a mass frenzy that’s starting to raise its greedy head – again?

For a couple of months now I’ve been writing about and noticing real estate prices both in Florida, and particularly on Anna Maria, reaching pre-bubble-bursting levels. And we’re not alone. Nationally, there is what some real estate professionals are calling artificial sales numbers in some regions.

The real estate eggheads have put their pointy heads together and have come up with some of the reasons they think this is happening. For starters, there is a shortage of homes for sale. The ideal is to have a market balanced between buyers and sellers where there are enough available homes to satisfy demand.

Generally, that type of market is defined as six to seven months of inventory per the National Association of Realtors. In April, the available supply of single-family homes in the country was 5.3 months and in Manatee County it was 4.3 months, substantially lower than would be considered a balanced market, on top of a 2.6 percent decline in inventory.

Even the real estate eggheads can only speculate the reason for the lack of inventory. Some believe homeowners who bought at the top of the market are reluctant to sell because the value of their homes went down so far in the financial crisis that it still hasn’t recovered. Or some homeowners are starting to see the market going up and are holding out for higher prices. The overall slow economy and poor job market also has to be factored into the real estate market, which partly depends on job relocations adding inventory to the marketplace.

The other big factor creating the frenzy mentality is the historically low interest rates. We’ve been enjoying interest rates for primary mortgages in the low 4 percent range for a very long time, but that may be coming to an end. The feds are continually sending warning signs that rates may be going up, pushing buyers into making decisions before that happens.

So what do you do if you’re a buyer in this market? The first thing you do is get past the frenzy. Compulsive buying at inflated prices for something that you may not really be able to afford – I can guarantee you will lead to trouble down the road if prices take a turn down. Full price offers, over listing price offers and bidding wars are happening all over the country, leaving the winning buyer feeling like he has just overpaid for a Grecian urn at an auction. Set a budget and stick to it.

Buyers in an effort to secure a home are also starting to waive contingencies that are standard in a contract of sale. Typically a mortgage contingency is part of a contract releasing the buyer if they are not approved for a mortgage for either a problem with their finances or, what is frequently happening now, the house doesn’t appraise.

In a rapidly appreciating market it can be very difficult to find comparable homes that have recently sold, placing the buyer in the position of coming up with more cash or moving on. In addition buyers are also waiving their right for a home inspection in order to sweeten up their offers. To enter into a contract of sale on a home without either one of these contingencies would be a mistake regardless of the nutty market.

The national madness we’re experiencing makes it a good time to sell, but possibly a risky time to buy. Whatever you do, stay away from the madness. Hopefully it’s only temporary.

Real Estate Transactions
November 2014

Sponsored by Alan Galletto Island Real Estate

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

Anna Maria

04/22/15 495,000 410,000 615 Fern St 910 50x100x50x100 2 Br/1 Ba SFR
04/16/15 579,000 560,000 212 Sycamore Ave 1026 2 Br/2 Ba SFR
04/15/15 599,900 575,000 844 N Shore Dr. 1296 50x152 2 Br/1.5 Ba SFR
04/01/15 674,900 660,000 206 Archer Way 2145 3 Br/2 Ba SFR
04/09/15 679,000 670,000 709 N Bay Blvd 1200 3 Br/2 Ba SFR
04/30/15 975,000 925,000 313 Hardin Ave 2039 3 Br/3 Ba SFR
04/24/15 968,900 935,000 238 Gladiolus St. 2202 3 Br/2 Ba SFR
04/24/15 1,299,000 1,200,000 909 North Shore Dr. 1868 50x12 3 Br/3 Ba SFR
04/16/15 700,000 700,000 111 Park Ave 50x106 Lot
04/28/15 550,000 540,000 513 Villa Rosa Way 99x50x87x94 Lot
04/21/15 465,000 450,000 303 Pine Ave 72.0x104.0 Mixed

Bradenton Beach

04/30/15 463,000 450,000 2109 Avenue C 858 2 Br/1 Ba SFR
04/15/15 479,000 459,000 1325 Gulf N Dr. 164 1425 2 Br/2 Ba Condo
04/24/15 194,000 185,000 1603 Gulf N Dr. # 19 540 1 Br/1 Ba Condo
04/03/15 325,000 295,000 1801 Gulf N Dr. # 267 1080 2 Br/2 Ba Condo
04/01/15 365,000 345,000 1801 Gulf N Dr. # 135 1080 2 Br/2 Ba Condo
04/13/15 349,000 345,000 1301 Bay N Dr. # 1b 1079 2 Br/2 Ba Condo
04/30/15 399,900 375,000 1007 Gulf N Dr. # 107 1836 2 Br/2 Ba Condo
04/20/15 619,000 609,000 103 10th N St # 103 2020 3 Br/2 Ba Condo
04/30/15 139,000 136,000 2601 Gulf N Dr. # 623 503 1 Br/1 Ba Mobile Home

Cortez

04/03/15 649,000 585,000 4106 Osprey Harbour 2020 3 Br/3 Ba SFR
04/21/15 440,000 425,000 3850 Mariners Walk 1904 3 Br/2 Ba Condo
04/30/15 479,000 465,000 3045 Mariners Cove Dr 2227 3 Br/2 Ba Condo
04/27/15 529,000 523,000 12514 Harbour Landings Dr. 2361 3 Br/2 Ba Condo
04/30/15 799,999 750,000 4236 Marina Ct # 112 2748 3 Br/2 Ba Condo
04/01/15 515,000 495,000 12506 Harbour Land Dr. 1921 50x139 3 Br/2 Ba Villa

Holmes Beach

04/09/15 399,000 360,000 204 84th St 1305 2 Br/2 Ba SFR
04/06/15 415,000 395,000 309 62nd St 928 2 Br/1 Ba SFR
04/07/15 585,000 530,000 516 69th St 1541 2 Br/2 Ba SFR
04/30/15 579,900 535,000 526 72nd St 1388 2 Br/2 Ba SFR
04/03/15 599,900 565,000 604 Foxworth Ln 2079 3 Br/3 Ba SFR, Reo / Bank Owned
04/15/15 624,900 605,000 650 Key Royale Dr. 1952 3 Br/2 Ba SFR
04/13/15 699,500 650,000 517 Bayview Dr. 1250 75 x 120 2 Br/1 Ba SFR
04/28/15 699,000 650,000 520 72nd St 2647 3 Br/2.5 Ba SFR
04/07/15 679,900 657,500 624 Foxworth Ln 1823 3 Br/2.5 Ba SFR
04/14/15 895,000 815,000 601 Key Royale Dr. 2304 2 Br/ Ba SFR
04/22/15 1,200,000 1,000,000 204 69th St 1700 5 Br/4 Ba SFR
04/30/15 1,795,000 1,695,000 531 Key Royale Dr. 2670 100.0x17 4 Br/2.5 Ba SFR
04/01/15 262,000 252,000 3801 E Bay Dr. 203 1146 2 Br/2 Ba Condo
04/15/15 259,000 255,545 3705 E Bay Dr. # 102 1121 2 Br/2 Ba Condo
04/10/15 335,000 310,000 6500 Flotilla Dr. # 158 1185 2 Br/2 Ba Condo
04/15/15 310,000 310,000 600 Manatee Ave # 221 1179 2 Br/2 Ba Condo
04/27/15 334,900 313,750 6200 Flotilla Dr. # 245 985 2 Br/2 Ba Condo
04/24/15 374,500 350,000 1801 N Gulf Dr. # 207 1080 2 Br/2 Ba Condo
04/24/15 425,000 400,000 5608 Gulf Dr. # 210 1092 2 Br/2 Ba Condo
04/29/15 1,299,000 1,150,000 7320 Gulf Dr. 10 2068 3 Br/2 Ba Condo
04/13/15 699,500 650,000 517 Bayview Dr. 75' X 120' Lot
04/03/15 1,150,000 1,010,000 202 56th St 3257 107.0x117.0 Four Units

 

Source: Mid Florida Multiple Listing Service


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