Posted: Jun 03, 2014
Old Town Home Sales Rebound in May

Old Town Key West 2014 sales started with a bang with 15 in January. February slowed with 8, March had 11.  April also had 11, all in the upper price ranges, which caused concerns about sustainability.  But May had 15 sales, nicely distributed in price and in bed/bath configuration.  Sale prices continue to move up across the board with some bed/bath configurations selling at 47% to 80% above their 2009 lows.  Additionally, as home equity and faith in the market rises, home improvement also climbs, with building remodeling applications at an all time high. Still, inventory remains tight and the traditionally slow summer season is upon us.

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2006 to May 31, 2014.

 

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 and after the 2004-2006 real estate Bubble.

 

Two, 1Bed/1Bath homes have sold in the Old Town area thru 5/31/2014. One is a genuine one-of-a-kind home surrounded by a 10,000 sqft tropical rain forest in the middle of Old Town; hence its sale price of $1.24M!  The second more modest requiring minor fix-up. Otherwise, first time buyers have turned away from small Old Town homes, buying elsewhere or renting. For example, the average price per sqft of the five 1/1's for sale is $825. The five year Sold average is $541.

 

Five, 2Bed/1Bath homes have sold in the Old Town area thru 5/31/2014, two in January, three in May. The average Sold price of $478,000 is 15%  more than in 2013.  Price per sqft. of $571 is up 30% over 2013. Nine 2/1 homes are for sale with prices up to $689,000. Fifteen, 2/1 homes sold in 2011, sixteen sold in 2012 and twenty-one sold in 2013.  Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town.

 

 

Ten, 2Bed/2Bath homes have sold in the Old Town area thru 5/3/2014. The average sale price of $750,000 is 29% above 2013 and 76% above the low in 2009. There are twenty 2/2's for sale, priced between $469,000 and $1.295M. Average price per sqft of these twenty is $675, 44% 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.

 

Ten, 3Bed/2Bath homes have sold in the Old Town area thru 5/31/2014. The average Sold price of $831,000 is 12% more than 2013 which was 25% more than 2012 and is up 80% from the 2009 low! The average sold price per sqft. of $604 is the highest since 2007. Eighteen 3/2's sold in 2012 and twenty-one sold in 2013. The fourteen presently 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.

 

Ten, 3Bed/3Bath homes have sold in the Old Town area thru 5/31/2014. The average Sold price of $1.198M is 18% more than 2013 and is 62% above the 2010 low. The average sold price per sqft. of $644 is 20% more than 2013 and 44% above the 2009-2013 average. Twenty-seven 3/3's sold in 2012, the highest recorded, and twenty-six in 2013.  There are nineteen 3/3's For Sale from $699K to $3.75M. Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West.

 

Three, 4Bed/3Bath homes have sold in the Old Town area thru 5/31/2014. The Sold price of $2.083M is 93% 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 sqft foot, shows strength. There are twelve 4/3's For Sale priced between $825,000 and $3.5M.

 

Six, 4Bed/4Bath homes have sold in the Old Town area thru 5/31/2014. The average Sold price of $1.695M is 11% above 2013, 22% above the 10-year average and 52% above the 2009 low. The average sold price per sqft of $645 is 13% above 2013 which was 47% more than 2012. Since 2003 the average number of sales is six homes, so nine sold for 2013 was excellent. Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price.

Conclusion

Florida is the #1 state for real estate sales to foreigners with 84% of these sales are in cash. The sunshine state is golden to people from Europe, the Middle East and South America.  BUT - sales of Key West real estate to foreigners is a minor percentage. Who then can best bring the non-US buyer to Key West? And how?

 

The ONLY real estate company in Key West specifically engineered to reach the domestic AND international buyer and seller is Engel & Volkers Florida Keys. Eighty-five percent of our 550 offices are OUTSIDE of the US and all are linked via email and a closed circuit broadcast of properties. Sale of real estate across cultures, languages and borders is our specialty.

 

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

 

Good luck!