Now that second quarter MLS statistics are in, I’d like to share some of my conclusions to help buyers and investors decide where their money might be best spent on Anna Maria Island.
Buy “single family” since it will most likely sell more quickly than a condo! Although an almost equal number of condominiums and family homes were on the market last quarter, 30% more single family homes than condos closed. The average selling price: $780,000 for single family and $490,000 for condos.
Buy a three bedroom residence rather than a two bedroom, if possible. Three bedroom single family homes sold at an average price of $689,500, while two bedroom properties closed at an average of $537,700. Nowhere is this advice more evident than in the condo market in which the average three bedroom condo closed last quarter at $831,000 while two bedroom units sold on average at $319,000.
Purchase in the hottest price point! A full 30% of all single family homes on the market last quarter closed in the $500,000-$750,000 range, with 77% of those having three or more bedrooms. An amazing 67% of the condos sold last quarter were two bedroom units; however, given that three bedroom condos closed at an average price of 62% more than two bedroom units, my advice to builders is, “Build more than two bedrooms in the future,” and to buyers, “Spend a little more to get more in return.”
Overall, buyers are choosing larger spaces over smaller spaces, even though it costs a premium. The average size of a three bedroom home sold last quarter was 2,431 square feet as opposed to 1,316 for a two bedroom. Condos, naturally smaller, showed an average square footage of 1069 for a two bedroom versus 1640 for a three bedroom.
The lesson in all this: Island property sales point to a future of bigger homes and bigger spaces for bigger prices.