Sixteen single family homes sold in the Old Town area in April at an average sales price of $1,002,000! The price per square foot of $696 was 30% above the 2010-2014 average. This was due to high prices for a few very small and a few very large homes. However, overall sales prices are softening, especially for two and three bedroom homes, a trend now in its 6 month, which is good news for bubble watchers as the market rebounds from 2010 lows. Rapidly rising prices eventually crash. Therefore, a pause in rising overall prices helps to stabilize the market.
The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2006 to April 30, 2015.
These charts are for single family homes sold south and west of White St. and cover the neighborhoods of The Meadows, Old Town, Truman Annex and Casa Marina but not Sunset Key. You can view a neighborhood map here. The seven bed/bath combinations below contain enough sales to measure and evaluate trends after the 2004-2006 real estate Bubble.
The basic trend for 90% of sales is - Buyers demand quality.
Five, 1Bed/1Bath homes have sold in the Old Town area thru 4/30/2015. The average sale price of $539,000 is 21% above the average sale price for 2014. In 2014, eleven 1/1 homes sold, the most since 2010! Buyers are very choosey about buying smaller Old Town homes. The average size of the five for sale is 814 sq.ft., 31% larger than the 2010 - 2014 average. Yet, the average sale price of $636,000 is 70% higher, than the 2010 - 2014 average of $375,000.
Eight, 2Bed/1Bath homes have sold in the Old Town area thru 4/30/2015. The average Sold price of $484,000 is 3% more than 2014 which was 13% more than in 2013. Six 2/1 homes are for sale with prices from $499K to $799K. Fifteen 2/1 homes sold in 2011, sixteen in 2012 and twenty-one in 2013 but only fourteen in 2014! Eight sales thru April is encouraging. Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town.
Seven Closings in April!
Eighteen, 2Bed/2Bath homes have sold in the Old Town area thru 4/30/2015. The average sale price of $732,000 is 1% below 2014 yet 72% above the low in 2009. There are seventeen 2/2's for sale, priced between $463,000 and $1.15M. Average price per sqft of these seventeen is $595, 26% more than the five year average of $470 per sqft. Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West.
Five, 3Bed/2Bath homes have sold in the Old Town area thru 4/30/2015. The average Sold price of $802,000 is 17% below 2014 which was 30% more than 2013 and is up 74% from the 2009 low. The average sold price per sqft. is $550, down 2% from 2014. Twenty-one 3/2's sold in 2013 and twenty-seven sold in 2014. The sixteen For Sale offer a wide range of price and matching quality. Since 2009, 3Bed/2Bath homes have been the second biggest sellers in Old Town Key West.
Eight, 3Bed/3Bath homes have sold in the Old Town area thru 4/30/2015. The average Sold price of $1.12M is 8% less than 2014 which was 20% more than 2013. The average sold price per sqft. of $647 is 3% less than 2014 yet 6% above the 2009-2013 average. Twenty-seven 3/3's sold in 2012, the highest recorded, and twenty-six in 2013. There are eleven 3/3's For Sale from $645K to $2.5M. Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West.
Two, 4Bed/3Bath homes have sold in the Old Town area thru 4/30/2015. The average sale price of $1,335M is 23% lower than the 2014 average Sold price of $1.723M which was 59% more than the average Sold price for 2013. This Bed/Bath configuration has yet to solidly reverse price decline. HOWEVER. The twelve sales in 2012, the highest since 2008, and eleven sales in 2013, with a climbing average sales price per square foot, shows strength. There are ten 4/3's For Sale priced between $750K and $2.9M
Three 4Bed/4Bath homes have sold in the Old Town area thru 4/30/2015. The average sale price of $2.45M is 55% above the 2014 average Sold price which was 4% above 2013, and 120% above the 2009 low. The average sold price per sqft of $851 is 40% above 2014. Since 2003 the average number of annual sales is six, with nine sold in 2013 and 10 in 2014. Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price.
Summary
The trend of steady-to-up number of sales yet a softening of the average sales price began in the 4th Quarter of 2014. Both the 4th Qtr of 2014 and the 1st Qtr of 2015 showed lower year over year average sales prices.
Certainly this is preferable to the opposite; fewer sales and higher prices. Increasing numbers of sales are the key to a sustainable market, not higher prices. Bubbles generally are based on unsustainable gains in pricing, not increasing number of sales.
Of NOTE, both 3/2 and 3/3 homes, big gainers in price and number of sales over the past four years are selling at average sale prices below those of 2014, and, in fewer days. Are these affluent owners cashing out now ahead of a storm?
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Good luck.