Anna Maria Island is a gorgeous barrier island located on the Gulf of Mexico in Florida, known for its stunning beaches, clear blue waters, and laid-back lifestyle. Much of Anna Maria Island’s draw is because it contrasts other parts of the Florida coast like the popular destinations Orlando, Miami, and Tampa.
At its widest point, Anna Maria Island is only one mile wide but seven miles long. Instead of long, busy highways, three bridges connect Anna Maria Island to nearby Bradenton, Cortez, and Longboat Key, providing a cherished and intimate setting. There are no high-rise hotels filled with bustling tourists or crowds. The tight-knit island community has preserved the feeling of “Old Florida” charm, where residents and visitors can truly enjoy a serene, quiet oasis with everything the Gulf Coast has to offer. It’s a beloved beach community that delivers the convenience of a seaside escape with the luxury of big city settings.
Anna Maria Island has been a popular vacation spot for many decades but has also become an attractive destination for real estate investors in recent years. As we approach the subsequent quarters of 2023, it is essential to analyze the current state of the Anna Maria Island real estate market and make some predictions about what could lie ahead.
Current Anna Maria Island Real Estate Market Trends
Toward the end of 2022, the market stabilized quite a bit, despite interest hikes. So far, national interest rates are still trending up. The good news for Anna Maria Island’s real estate is the market remains relatively stable.
Despite the stories of an unfavorable market elsewhere, there is little cause for concern here. The available inventory is reasonably balanced, and selling prices are at price points buyers, sellers, and investors can be happy about. Although the average time on the market is up slightly from this time last year, it isn’t unusual for sales to decline during the fall and winter. Overall, the Anna Maria Island housing market continues to thrive as a healthy, favorable buyer’s market.
Factors That Could Impact the Anna Maria Island Real Estate Market in 2023
The good economic news is the prediction from the Mortgage Bankers Association. They believe interest rates have already peaked and will begin to fall by the end of the year with a cap of a 5.2% predicted rate.
Again, no one can predict the future with absolute certainty, but many analysts are skeptical that rates will rise much. Even better for Anna Maria Island property buyers and investors, the market is trending towards a lower 3.25% interest rate by 2025. So, although the trends haven’t followed a straight-line trajectory, the overall predictions forecast a solid rebound in just the next two years.
Additionally, Florida is experiencing record growth. It’s considered the fasting growing state in the nation. As metro areas continue to grow, the opportunity for short- and long-term rental investments on Anna Maria Island exists. What’s more, the South Florida real estate market predictions show the most promise of price appreciation across the board, which aligns with the current buyer’s market conditions.
The combination of a stabilizing market and an increase in population pushes the demand for intimate settings, as Anna Maria Island luxury properties provide. Short- and long-term rentals boast a high ROI in Anna Maria Island because the demographics are flexible yet diverse. The tenants most likely to look for a rental lease here are primarily 55 and above, financially secure, and many are looking toward retirement—a stark contrast to rental properties in the tourist havens of the state.
Of course, no real estate market prediction in Florida is complete without a look at the current projections of hurricane season. Except for Hurricane Ian, the 2022 season was relatively quiet on Anna Maria Island. Current forecasts for 2023 are busy but not unusual. An El Nino weather pattern is predicted to begin at the start of the summer, making for what weather analysts call a weaker hurricane season. With only two to three major hurricanes on the forecast, an increasing statewide population, an increase in demand, and a stable market, 2023 could be the year you expand to Anna Maria Island.