Posted: Jan 03, 2013
What were 2012 results for real estate sales in Key West?

‚ÄčAt the peak in late 2006, the average residential sales price in Key West was approximately $950,000.  During the downturn, that average fell by 50% with sales of $1M properties practically disappearing.  Beginning in 2010, prices began to stabilize and since have stayed stable-to-up across most property types and configurations. For 2012 there were record sales in larger homes, specifically 3 Bed/3 Bath homes with 4 Bed/3 Bath homes close behind. In terms of popularity, 2 Bedroom homes once again dominated in total sales and significant price increases.

The graphs here are for single family homes 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 real estate Bubble.

 

The data begins Jan 1, 2000, runs through Dec 31, 2012 and continues the blogs of the sluggish 1st Qtr, booming 2nd Qtr and quiet 3rd Qtr 2012. Of note, Days on Market (DOM), or the number of days from listing to selling the property, is difficult to calculate exactly as oftentimes homes have been on and off the market over the past few years.
 

 

Seven, 1 Bed/1 Bath homes sold in the Old Town area in 2012.  This is slightly below the historic trend.  Prices were off modestly.  Inventory of 1/1 homes is down as many were bought in the early 2000's and upgraded to 2 Bed homes.  Also, first-time buyers have turned away from small Old Town homes, buying elsewhere or renting. The price spike is due to the sale of a single home with historic and sizable land in the heart of Old Town.
 

 

Sixteen, 2 Bed/1 Bath homes sold in 2012.  This is half the number sold in the heydays of 2004 and 2005 and below the historic trend of 21 annually, but the average sale price of $367,000 is up11% over 2011. This is the first year over year price increase since 2005. Price per square foot was up 6% to $389.  The chart shows a clear basing of prices and now return to an upside in prices.

 

 

Twenty-eight, 2 Bed/2 Bath homes sold in 2012.  The 32% price increase over 2011 was the highest among property types. As the chart reveals, this is the second year in the last four where sale prices have increased.  Price per square foot rose 27% to $511, supporting the position that buyers, overwhelmingly from out of town, want a finished product.

 

Eighteen, 3 Bed/2 Bath homes sold in 2012.  This is exactly in line with the historic trend.  While the average sale price of $593,000 was down 8% from 2011, the price chart here shows overall strength in price since the bottom in 2009.  Average size of 3/2 homes in 1417 sqft., of 2/2 homes is 1198 sqft and 3/3 homes is 1822 sqft.  Both 2/2 and 3/3 homes have prices per square feet over $500 whereas 3/2 homes are at $419 per square feet. 

More 3 Bed/3 Bath single family homes sold in the Old Town area then ever before.

 

Twenty-seven, 3 Bed/3 Bath homes sold in 2012, well exceeding the historic trend of 11 annually.  The average sale price of $912,000 was up 1% over 2011 which was up 23% over 2010. The average price per square foot of $501 was the first time over $500 since 2008. When combined with 3/2 homes, there is a clear trend towards 3 bedroom homes as value buyers purchase homes to stay in with friends and family.

 

Twelve, 4 Bed/3 Bath homes sold in 2012.  Twelve exceeds the historic trend of 9 annually and continues the trend towards larger homes.  The average sales price of $1,232,000 is the highest of the homes types here reviewed (though still $1M below the 4/3 peak of $2,332,000 in 2005).  The average size of the home was 2635 square feet, third highest sincee 2000.

 

Four, 4 Bed/4 Bath homes sold in 2012.  This is below the historic trend of 5.5 annually.  Also too, the average sale price of $895,000, down 32% from 2011, is the first average sale price below $1M since 2002.  The small sample size makes it difficult to pinpoint trends yet inventory remains strong and value buyers looking for 4/4 homes still have excellent options on the market.

Larger homes are the trend in the Old Town - Casa Marina - Truman Annex areas. (See Map).  Affluent cash buyers and low rates mortgage rates make larger Key West homes smart, value buys.  Two bedroom homes will continue to prosper as they remain within reach of a larger overall audience.

 

Remember, these charts depict specific property types and exclude all the half bath homes; i.e. 2 Bed/1.5 Bath and odd layouts; 3 Bed/1 Bath, 4 Bed/2 Bath, etc., for which there are not enough sales to develop trends.

 

Inventory is stabilizing and as prices continue to recover, sellers will re-enter the market.  Key West remains a viable destination for travelers with foreign accents heard on every street.  This year more than ever Chinese, Japanese and Thai are gracing Key West, significantly broadening the base of buyers.

 

If you have any comments, please contact me here.

 

Thank you, good luck and welcome to 2013.