Posted: May 03, 2016
Old Town Key West sales thru April Slow Ahead

Fifteen single family homes sold in the Old Town area in April 2016, exactly in line with the 5-year average for April sales. The average sales price per square foot of $715 was 3% higher than April 2015 and 25% higher than the 5-year average. The 48 single family homes sold Jan - April 2016 is 2% less than the 5-year average, yet is 23% less than the 62 sales of Jan - April 2015. In March, April and May 2015, there were 63 Closings. For March and April 2016, there have been 28 Closings. There are five Pending and nine Contingent properties. If all 14 of these properties Close in May, that would be 42 Closings, or Closings down 33% year over year.

 

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, 2016.

 

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.

 

  • Two 1Bed/1Bath homes have sold in the Old Town area thru 4/30/2016.
  • The 2016 average sale price of $538,000 is 12% above the average sale price for 2015.
  • In 2015, twelve 1/1 homes sold, the most since 2001.
  • The average size of the 2016 Solds is 663 sq.ft., equal to 2015; however,
  • The average sale price per sqft. is a remarkable $812.  This figure is 14% higher than 2015 and highest since 2005.

 

The average sales price for 2bed/1bath homes of $577,000 is 74% above the 2011 low.

  • Nine 2Bed/1Bath homes have sold in the Old Town area thru 4/30/2016.
  • Average Sold price of $577,000 is 1% less than 2015 which was 25% more than 2014.
  • Seven 2/1 homes are for sale with prices from $525K to $1.5M.
  • Fifteen 2/1 homes sold in 2011, sixteen in 2012 and twenty-one in 2013 but only fourteen in 2014 so twenty-three sales for 2015 was very encouraging.
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town.

 

  • Eleven, 2Bed/2Bath homes have sold in the Old Town area thru 4/30/2016.
  • The average sold price of $605,000 is 21% below 2015 and only 42% above the low in 2009.
  • Eighteen 2/2's are for sale, priced between $475,000 and $1.5M.
  • Average Sold price per sqft in 2016 is $518, 21% below 2015 which was 15% more than 2014.
  • Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 218 sales.

The average Sold Price for a 3bed/2bath home of $1,088,000 is 136% above the 2009 low.

  • Five 3Bed/2Bath homes have sold in the Old Town area thru 4/30/2016.
  • The average Sold price of $1,088,000 is 17% above 2015, which was 3% below 2014, and is 136% above the 2009 low.
  • Average sold price per sqft. is $740, up 19% from 2015, primarily because the five homes sold are 12% smaller than the 2011 - 2015 average.
  • Twenty-seven 3/2's sold in 2014 and twenty-one sold in 2015.
  • Since 2009, 3Bed/2Bath homes have been the second biggest sellers in Old Town Key West as value buyers took advantage of comparatively large homes at low prices.

 

  • Five 3Bed/3Bath homes have sold in the Old Town area thru 4/30/2016.
  • The average sold price of $1.125M is 8% below 2015 and only 52% above the 2010 low.
  • The average size of the three sold is1647 sq.ft., the smallest since 2004; yet, the average Sold price per sqft. of $683 is the highest since 2008.
  • Twenty-three 3/3's sold in 2014 and nineteen in 2015.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West.

 

  • Four 4Bed/3Bath homes have sold in the Old Town area thru 4/30/2016.
  • The 2016 average sale price of $1.63M is 5% above 2015 which was 10% below the 2014 average sold price. $1.63M is 93% above the 2009 low.
  • Average Sold price per sq.ft. is $752, 8% above 2015 and the highest since 2008.
  • This Bed/Bath configuration has yet to solidly reverse price decline. HOWEVER. The twelve sales in 2012, the highest since 2008, and seven sales in 2015, with a climbing average sales price per square foot, shows strength.

The average Sold price for a 4bed/4bath house of $2.395M is 115% above the 2009 low.

  • Four 4Bed/4Bath homes have sold in the Old Town area thru 4/30/2016.
  • The average Sold price of $2.395M is 14% above the 2015 average Sold price which was 30% above 2014 and in the highest recorded.  Still, the $1.855M is 67% above the 2009 low.
  • The 2016 average sold price per sq.ft. of $858 is 14% above the 2015 average sold price per sqft which was 24% above 2014.
  • Since 2003, average number of annual sales is six, with nine sold in 2013, ten in 2014 and six in 2015.
  • Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price.

Summary

 

As reported in my End of Year 2015 Report, the slow down in sales began in August 2015.  1st Qtr 2016 sales likewise remained slow. However, average sales prices have stayed high along with average sale price per square foot.  Overwhelmingly, buyers prefer fully renovated homes and are willing to pay a premium to buy one.

 

Inventory remains restricted. Consequently, Buyers are not reluctant to pull the trigger as three home configurations; 1/1, 2/1 and 3/3 are closing in less than 90 days from the listing date.

 

Perhaps the reduced volume of sales, like the national GDP of 2%, is the new norm.  Additionally, I see no evidence, either tangible or implied, in a surge in number of sales or higher sales prices as a result of expanded ties with Cuba.

 

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

 

Good luck!