Posted: Jan 03, 2021
Key West Old Town Home Sales Finish 2020 in Triumph

Twenty single family homes sold in the Old Town area in December, a spectacular end to the year. Twenty is the most number of sales in any month of 2020, is the highest number of monthly sales since May 2019 and brought the 2020 year end total of sales to 142 - only two sales less than the record set in 2019! On Prices, December's average sold price of $1.5M was second highest for the year. November was first at $1.57M. The end of year average sale price per square feet of $777 is 5% below that of end of year 2019 but 13% ahead of the 5-year average.

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The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2011 to December 31, 2020. When there is a difference between total home sales and the sum of sales in the below seven charts it is because of a sale of, for instance, a 2bed/3bath or 3bed/1bath house or a house with more than four bedrooms.

 

These charts are for single family homes sold south and west of White St. and cover the six neighborhoods of The Meadows, Old Town North and South, Bahama Village, Truman Annex and Casa Marina but not Sunset Key.  You can view a map of the six neighborhoods of Old Town here.  An analysis of full year 2020 sales, neighborhood by neighborhood, is here.

 

The seven bed/bath combinations below contain enough sales to measure and evaluate trends after the 2004-2006 real estate Bubble.

1 Bedroom/1 Bathroom

  • Ten, 1Bed/1Bath homes have sold in the Old Town area thru 12/31/2020. The average number of days to sell is 110 days.
  • There are three 1/1 homes for sale priced between $608K and $699K.
  • The 2020 average sale price of $536,000 is 4% less than the average sale price for 2019 and 175% above the 2011 low.
  • The ten sales in 2020 is the best since 2015 when twelve homes sold.
  • The average size of the 2020 homes sold is 639 sq.ft., about average. The average sale price per sqft. of $839 is 6% below 2019.

2 Bedroom/1 Bathroom

  • Eight, 2Bed/1Bath homes have sold in the Old Town area thru 12/31/2020.  The average number of days to sell is 77 days.
  • The 2020 average Sold price of $629,000 is 12% above 2019 which at $560K was down 29% from 2018. The $629K is 89% above the 2011 low.
  • Four 2/1 homes are for sale with prices from $749K to $949K.
  • Twenty-five homes sold in 2018 and twenty-one in 2019.
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 211 sales

2 Bedroom/2 Bathroom

  • Twenty-eight, 2Bed/2Bath homes have sold in the Old Town area thru 12/31/2020. The average number of  Days to sell is 129 Days.
  • The average sold price of $905,000 is 1% higher than 2019, is the highest average sold price since 2006 and is 113% above the low in 2009.
  • Thirteen 2/2's are for sale, priced between $699K and $1.439M.
  • The 2020 average Sold price per sqft is $768, up 6% over 2019.  In 2019 the average was $724, in 2018 the average was $747.
  • Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 349 sales.

3 Bedroom/2 Bathroom

  • Thirty, 3Bed/2Bath homes have sold in the Old Town area thru 12/31/2020. The average number of Days to sell is 123 Days.
  • The average Sold price of $1,106,000 is down 12% from 2019 and is 140% above the 2009 low.
  • The average sold price per sqft. is $735, down 5% from 2019.
  • Twenty-seven homes sold in 2017, twenty-five in 2018 and twenty-six in 2019.
  • Since 2009, 3Bed/2Bath homes have been the 2nd biggest sellers in Old Town, exceeding twenty sales every year since 2013 except in 2016. Total sales since 2009 is 261 sales

3 Bedroom/3 Bathroom

  • Nineteen, 3Bed/3Bath homes have sold in the Old Town area thru 12/31/2020. The average number of Days to sell is 117 Days.
  • The 2020 average sold price of $1.493M is 8% above 2019 which was 11% below 2018. $1.493M is 102% above the 2010 low.
  • The average Sold price per sqft. of $928 is up 22% from 2019 and is the highest recorded for 3/3 homes.
  • Seventeen homes sold in 2018 and twenty-six in 2019.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West with 218 sales.

4 Bedroom/3 Bathroom

  • Sixteen, 4bed/3bath homes have sold in the Old Town area thru 12/31/2020. The average number of days to sell is 112 days.
  • The average sold price of $1.603M, is down 18% from 2019 and is 90% above the 2009 low.
  • More 4/3's have sold thru November than 2019 and 2018 combined. Sixteen solds equals the highest annual total ever which occured in 2008!
  • The average sales price per sqft is $732, down 21% from 2019.
  • There are nine homes for sale, ranging in price from $1.439M to $3.3995M.
  • Number of sales and sales prices for 4Bed/3Bath homes is very choppy though there has been an erratic up trend in average sale price since 2013.

4 Bedroom/4 Bathroom

  • Four, 4Bed/4Bath homes have sold in the Old Town area thru 12/31/2020. Average number of Days to sell is 70 days. Five homes sold in 2019 at an average days on market of 52 days.
  • There are ten 4/4's for sale ranging from $1.99M to $3.9M.
  • The 2020 average sold price of $2.493M is up 3% from 2019, which was unchanged from 2018, and is up 124% since the 2009 low.
  • The 2020 average sold price per sq.ft. of $905 is down 19% from 2019.
  • Since 2003, average number of annual sales is six, with six in 2017, fourteen in 2018 and five in 2019.  Despite the choppy number of sales, price action has been steady, $2M - $2.4M.

Summary

 

Let's face it - Key West real estate is a rich person's game. Second homes. Disposable income. 47% of all single family homes bought in Old Town in 2020 were a Cash sale. Average Sold price for the 142 homes Sold was $1.284M (identical to 2019). That's real money.

 

Where is this money comng from? The Dow was up 7% for the year; the S&P was up 16%; the Russell 2000 was up 18%; and the Nasdaq was up 43%. Not bad.

 

Even more impressive was the rebound from their March lows. The Dow rebounded 68%; the S&P rallied 71%; the Nasdaq jumped 94%; and the Russell 2000 surged by 104%. Institutional money managers, like athletes or soldiers, took their hit, got up, brushed off and navigated the storm.

 

Adroit money management and a fervent desire by Buyers to own Key West property; safe haven and remote yet readily accessible by long distance air travel, kept Key West as a viable long term investment.  Thank you very much.

Conclusion

 

When the City of Key West closed the bars in town on St. Patrick's Day there was much talk of stormy weather. Many Key Westers had not previously stood fast against adversity and so failed to realize that when the weather turns foul - Its All Hands on Deck. Turn into the wind and reef sail. Old Town home sales finished precisely where I predicted in March, allowing real estate to be one of the few bright spots in 2020 Key West. Yet ...

 

... the overall recovery for Key West has been very uneven. Public policy has separated us from all being in this together. A handout is not as good as a leg up; yet, without a leg up, many proud Key Westers have been forced to extend their hand. 

 

Finally, a very Well Done to you who got back up, pulled your hat snug 'round your ears and remain standing tall for yourself and for those who depend on you. It was not easy. You were short stacked and yet prevailed. Congratulations! Now for 2021 ...

 

The storm threatens still.  Stand by for heavy rolls.

 

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

 

Welcome to 2021.  Good luck!