Old Town sales of single family homes continue a steady climb. Number of Old Town homes sold this quarter (46) is up 24% over the 1st Quarter of 2014 and the highest recorded. (The average sale price of $978,000 is 7% less than 2014, 3rd highest since 2008). Average number of days to sell varies by home type but is generally taking longer as sellers set their price ahead of buyers' desire to pay, especially for larger homes. Also, this is the second quarter in a row where the average sales prices was less than the previous year's respective quarter; i.e. 4th Qtr 2014 was less than 4th Qtr 2013 and 1st Qtr 2015 was less than 1st Qtr 2014.
The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2006 to March 31, 2015.
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.
Five, 1Bed/1Bath homes have sold in the Old Town area thru 3/31/2015. The average sale price of $539,000 is 21% above the average sale price for 2014. In 2014, eleven 1/1 homes sold, the most since 2010! Buyers are very choosey about buying smaller Old Town homes. The average size of the five for sale is 814 sq.ft., 31% larger than the 2010 - 2014 average. Yet, the average sale price of $636,000 is 70% higher, than the 2010 - 2014 average of $375,000.
Six, 2Bed/1Bath homes have sold in the Old Town area thru 3/31/2015. The average Sold price of $459,000 is 2% less than 2014 which was 13% more than in 2013. Six 2/1 homes are for sale with prices from $499K to $822K. Fifteen 2/1 homes sold in 2011, sixteen in 2012 and twenty-one in 2013 but only fourteen in 2014! Why? Overpriced. Even so, since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town.
Since 2009, and through March 2015, 2bed/2bath homes are the biggest seller in Old Town.
Eleven, 2Bed/2Bath homes have sold in the Old Town area thru 3/31/2015. The average sale price of $671,000 is 10% below 2014 and 58% above the low in 2009. There are fifteen 2/2's for sale, priced between $469,000 and $1.15M. Average price per sqft of these fifteen is $595, 26% 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.
Four, 3Bed/2Bath homes have sold in the Old Town area thru 3/31/2015. The average Sold price of $715,000 is 26% below 2014 which was 30% more than 2013 and is up 55% from the 2009 low. The average sold price per sqft. is $497. Twenty-one 3/2's sold in 2013 and twenty-sevn sold in 2014. The fifteen 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.
Seven, 3Bed/3Bath homes have sold in the Old Town area thru 3/31/2015. The average Sold price of $1.19M is 2% less than 2014 which was 20% more than 2013. The average sold price per sqft. of $642 is 4% less than 2014 yet 6% above the 2009-2013 average. Twenty-seven 3/3's sold in 2012, the highest recorded, and twenty-six in 2013. There are fourteen 3/3's For Sale from $645K to $2.5M. Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West.
Two, 4Bed/3Bath homes have sold in the Old Town area thru 3/31/2015. The sale price of $1,335,000 is 23% lower than the 2014 average Sold price of $1.723M which was 59% 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 square foot, shows strength. There are twelve 4/3's For Sale priced between $770K and $3.2M
One incredible 4Bed/4Bath home has sold in the Old Town area thru 3/31/2015. The sale price of $2.75M is 74% above the 2014 average Sold price of $1.577M which was 4% above 2013, and147% above the 2009 low. The average sold price per sqft of $808 is 33% above 2014. Since 2003 the average number of annual sales is six, with nine sold in 2013 and 10 in 2014. Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price.
Conclusion
Buyers continue to demand value for their sale, prefering move-in condition over fixer-uppers - Sellers who price their home as if wanting the buyer to pay the seller a "post renovation" price will probably not be successful.
As with any second or investment home market, buyers must have pockets deep enough to survive a market that turns south, see 2005 - 2010, due to hiccups either domestic or international. Do not buy to flip.
Sale prices will likely hit pre-bubble levels in 2015. If so, what will be the result? Continue to new highs or level off and set a new base? New highs will add risk to an extended market. A new base will allow more buyers to eventually participate as their disposable income levels encourage the to buy second homes and investment property - strengthening the Key West real estatee market.
The year before Presidential elections is traditionally an up year for the markets as incumbents pump the economy. Since many buyers of Key West real estate rely more on wealth than income, this should be a good thing. Additionally, boomers and near-boomers continue to buy second homes that serve two purposes; a balancing element to their investment portfolio and a second home to which they can eventualy migrate and convert into their primary home (in a no personal income tax state!).