Larger Old Town Key West homes; those with three and four bedrooms, kicked off 2014 just like they finished 2013, solid number of sales and higher cost per square foot. Three bedroom homes are 70% to 79% above their 2009/2010 lows and four bedroom homes are 20% above their 10 year sales price average. Smaller homes sales did well in 2013 but are off to a slow start.  January is an historically slow month for Closings and those smaller homes for sale are asking higher than necessary prices.  Additionally, inventory of homes for sale, across the price spectrum, remains tight as many owners are waiting for the 2004-06 price peak to be regained.

 The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2000 to January 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 after the 2004-2006 real estate Bubble.

Zero, 1Bed/1Bath homes sold in the Old Town area thru 1/31/2014.  (None since August 2013). The average For Sale price is $481,000, 18% above last year's average .  The average For Sale price per square foot is $642, 15% above last year's average.  First time buyers have turned away from small Old Town homes, buying elsewhere or renting. Average number of days on the market (DOM) for sale for these three homes is 501 days, 204% above 2013!

Two, 2Bed/1Bath homes sold in the Old Town area thru 1/31/2014. The average Sold price of $365,000 is 12% less than 2013.  Price per sqft. of $439 is the same as 2013. Six 2/1 homes are for sale with prices up to $725,000. Fifteen, 2/1 homes sold in 2011, sixteen sold in 2012 and twenty-one sold in 2013.  This trend bodes well for future sales of the 3rd most popular home in Old Town. Average number of days to sell is up 18% from 2013 to 181 days.

Zero, 2Bed/2Bath homes sold in the Old Town area thru 1/31/2014. There are fifteen 2/2's for sale, priced between $249,000 and $1.175M. Price per sqft of these fifteen is $559, 20% more than the 2013 average. The five year average is $448 per sqft. Twenty-eight, 2/2 homes sold in 2012, the second highest since 2004, and twenty-three in 2013.  2Bed/2Bath homes are the biggest sellers in Old Town Key West. Average number of days to sell fell last year 23% to 117 days.

Three, 3Bed/2Bath homes sold in the Old Town area thru 1/31/2014. The average Sold price of $785,000 is 6% more than 2013 which was 25% more than 2012 and is up 70% from the 2009 low! The price per sqft. of $590 is the highest since 2007. Eighteen 3/2's sold in 2012 and twenty-one sold in 2013. The nineteen For Sale offer a wide range of price and matching quality. The ten year average of number sold per year is 18. Average number of days to sell fell 3% from 2013 to 173 days.

Two, 3Bed/3Bath homes have sold in the Old Town area thru 1/31/2014. (Two in Sep, 1 in Oct, 3 in Nov, 4 in Dec). The average Sold price of $1.324M is 31% more than 2013 and 79% above the 2010 low. The price per sqft. of $827 is 54% more than 2013 and 51% above the five year (2009-2013) average. Twenty-seven 3/3's sold in 2012, the highest recorded, and twenty-six in 2013.  There are fifteen 3/3's For Sale from $869K to $2.9M. Average number of days to sell is up 10 % from 2013 to 118 days - fastest of all.

One, 4Bed/3Bath home sold in the Old Town area thru 1/31/2014. (None Sep - Nov, 1 in Dec). The average Sold price of $2.22M is 103% more than 2013. The 3000 sq. ft. mansion was sold before it was listed.  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 nine 4/3's For Sale priced between $869,000 and $3.5M.

FOUR, 4Bed/4Bath homes sold in the Old Town area thru 1/31/2014, the first since August 2013. The average Sold price of $1.683M is 11% above 2013 and 20% above the 10-year average. The average cost per sqft of $712 is 25% 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. The average number of days to sell is up 92% to 309 days. (One house was on market 1000+ days).

Conclusion

For Old Town sales to continue recovering, it is imperative to expand the buyer base.  European, Asian and Middle Eastern buyers view the US real estate market as safe, open and liquid. For Sellers to receive the highest possible price, they must work with a real estate company that is engineered to attract not just domestic but non-US buyers to the Key West real estate market. Do you hear all the foreign languages in town!

With 550 offices in 38 countries on 6 continents, the ONLY real estate company in Key West designed to reach the domestic AND international buyer and seller is Engel & Volkers Florida Keys.

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

Good luck!