​Old Town Key West single family home sales marked its 4th year of recovery with increases in number of sales, sales prices, prices per square foot and reduced number of days to sell.  Throughout 2013 larger homes drove the market, particularly larger three bedroom homes. Sustainability is the word as Buyers required value for thoughtful purchases. Investors would say the market is forming the right hand side of a cup with the handle to come. Cash has carried 45% to 50% of sales with large cash down payments also in play. Non U.S. entrepreneurs have started businesses and foreign investors have made major (hotel) investments. Foreign tourism is up.  Will 2014 be the year of the foreign buyer?

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2000 to December 31, 2013.

These charts are for single family homes sold south and west of White St. and cover the neighborhoods 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 before, during after the 2004-2006 real estate Bubble.

Seven 1Bed/1Bath homes sold in the Old Town area thru 12/31/2013 (None since August). The average Sold price of $406,000 is the third highest since 2007 (notwithstanding a $1M sale in 2012).  The average Price per SqFt is $559, second behind 4bed/4bath homes!  First time buyers have turned away from small Old Town homes, buying elsewhere or renting. Average number of days to sell, 165 days, is 30% less than 2012.

Twenty-one, 2Bed/1Bath homes sold in the Old Town area thru 12/31/2013. The average Sold price of $414,000 is 13% more than 2012.  Price per sqft. of $438 is 13% above 2012 which was 6% above 2010. Five 2/1 homes are for sale with prices up to $725,000. Sixteen, 2/1 homes sold in 2012, fifteen in 2011, so twenty-one sold in 2013 bodes well for future sales of the 3rd most popular home in Old Town. Average number of days to sell is down 7% from 2012 to 153 days.

Twenty-three (two in Nov, 1 in Dec), 2Bed/2Bath homes sold in the Old Town area thru 12/31/2013. The average Sold price of $580,000 is 5% less than 2012 but continues the recovery began in 2010. Price per sqft is $467, 9% less than 2012. The five year average is $448 per sqft. Twenty-eight, 2/2 homes sold in 2012, the second highest since 2004.  2Bed/2Bath homes are the biggest sellers in Old Town Key West. Average number of days to sell fell 23% to 116 days. Lower average sales price, lower price per sq.ft and faster sales indicate correctly priced homes needing only minor updates.

Twenty-one (3 in Nov), 3Bed/2Bath homes sold in the Old Town area thru 12/31/2013. The average Sold price of $741,000 is 25% more than 2012 and is up 59% from the 2009 low. The price per sqft. of $496 is the highest since 2007. Eighteen 3/2's sold in 2012 so twenty-one sales in 2013 is outstanding. The nineteen For Sale offer a wide range of price and matching quality. The ten year average of number sold per year is 18. Average number of days to sell fell 5% over 2012 to 177 days (In May it was 309 days).

Twenty-six, 3Bed/3Bath homes have sold in the Old Town area thru 12/31/2013. (Two in Sep, 1 in Oct, 3 in Nov, 4 in Dec). The average Sold price of $1.013M is 11% more than 2012 and 34% above the 2010 low. The price per sqft. of $537 is 7% more than 2012 and 19% above the four year (2009-2012) average. Twenty-seven 3/3's sold in 2012, the highest recorded. There are fifteen 3/3's For Sale from $869K to $3.75M. Average number of days to sell is down 22% from 2012 to 106 days - faster than any other bed/bath combination.

Eleven, 4Bed/3Bath homes sold in the Old Town area thru 12/31/2013. (None Sep - Nov, 1 in Dec). The average Sold price of $1.082M is 12% less than 2012 but price per sqft. increased 2% to $479. This Bed/Bath configuration has yet to reverse price decline. HOWEVER. The twelve sales in 2012 was the highest since 2008, average sales price per sqft foot is climbing and the average sales price of $1.082M shows strength. There are six 4/3's For Sale priced between $1.4M and $3.5M.

Nine, 4Bed/4Bath homes sold in the Old Town area thru 12/31/2013 (None since August). The average Sold price of $1.522M is 70% above 2012 and 10% more than the 10-year average. The average cost per sqft of $571 is 47% more than 2012. Since 2003 the average number of sales is six homes, so nine sold for 2013 is excellent. Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price. The average number of days to sell is up 43% to 161 days.

Conclusion

For Old Town sales to continue recovering, it is imperative to expand the buyer base.  European, Asian and Middle Eastern buyers view the US real estate market as safe, open and liquid. Sellers should work with real estate companies that are engineered to attract not just domestic but non-US buyers to the Key West real estate market. Do you hear all the foreign languages in town! With 550 offices worldwide, the ONLY company in Key West designed to reach the international buyer is Engel & Volkers Florida Keys.

If you have any comments or questions, please contact me here.

Good luck!