​Sales of single family homes in Old Town Key West in June came to a screeching halt.  Six homes sold.  This follows sales in May of twenty-two, April of twenty-one and March of twenty-five.  March’s average sales price was $708,000, April was $846,000, May was $847,000. June was $779,000 - excluding the sixth house, a 5bed/5bath at $2.5M. On the plus side number of sales in almost all bed/bath categories already exceed 50% of last years totals and sale prices continue an upward trend begun in 2010.  Why the slowdown? Real Buyers choose to not overpay and unqualified buyers are not fueling speculation by buying on emotion.

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2000 to June 30, 2013.

The charts below 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 2004-2006 real estate Bubble.

Five, 1Bed/1Bath homes sold in the Old Town area thru 6/30/2013. The average Sold price of $450,000 is the second highest since 2006 (notwithstanding a $1M sale in 2012).  Inventory of 1/1 homes is down as many were bought in the early 2000's and upgraded to 2 Bedroom homes.  Sellers of unimproved homes have not discounted fix-up costs.  Also, first-time buyers have turned away from small Old Town homes, buying elsewhere or renting. Average number of days to sell, 207 days, is 57% higher than the 10 year average of 131 days..

Twelve, 2Bed/1Bath homes sold in the Old Town area thru 6/30/2013. The average Sold price of $409,000 is 11% more than 2012.  Price per sqft. of $426 is 10% above 2012 yet only the 2nd increase since 2005. Ten 2/1 homes are for sale with prices up to $725,000. Sixteen, 2/1 homes sold in 2012, so twelve Sold and ten in the pipeline bode well for 2013 sales of the 3rd most popular home in Old Town. Average number of days to sell is up 3% over 2012 to 169 days.

Sixteen, 2Bed/2Bath homes sold in the Old Town area thru 6/30/2013. (Two in June).The average Sold price of $591,000 is 3% less than 2012 but clearly continues the upward recovery began in 2010. Price per sqft is $457, 11% less than 2012 and 4% less than the five year average of $465 per sqft. Twenty-eight, 2/2 homes sold in 2012, the second highest since 2004.  2Bed/2Bath homes are the biggest sellers in Old Town Key West. Average number of days to sell fell 12% to 132 days.

Fourteen, 3Bed/2Bath homes sold in the Old Town area thru 6/30/2013. (One in June).The average Sold price of $653,000 is 1% more than 2012 and is up 42% from the 2009 low. The price per sqft. of $464 is the highest since 2007. Eighteen 3/2's sold in 2012 so fourteen sales thus far is a good sign. The fourteen 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 increased 20% to 225 days (Down from 309 at the end of May).

Sixteen, 3Bed/3Bath homes sold in the Old Town area thru 6/30/2013. (Three in May and zero in June). The average Sold price of $962,000 is 5% more than 2012 and 30% above the 2010 low. The price per sqft. of $538 is 7% more than 2012 and 15% above the four year (2009-2012) average. Twenty-seven 3/3's sold in 2012, the highest recorded. Fifteen of the sixteen 3/3's for sale are $1M+. Average number of days to sell is up 7% to 147 days.

Six, 4Bed/3Bath homes sold in the Old Town area thru 6/30/2013. The average Sold price of $1.193M is 3% less than 2012 but price per sqft. increased 22% to $570. This Bed/Bath configuration has yet to reverse price decline. HOWEVER. The twelve sales in 2012 was the highest since 2008, average sales price per sqft foot was the second highest since 2008 and the average sales price of $1.193M shows strength. Of note, there six 4/3's for sale as of July 1, 2013 priced between $1.295M and $2.295M.

Seven, 4Bed/4Bath homes sold in the Old Town area thru 6/30/2013 (One in June). The average Sold price of $1.49M is 66% above 2012 and 9% more than the 10-year average. The average cost per sqft of $582 is 50% more than 2012. Since 2003 the average number of sales is six homes, so seven sold thus far bodes well for sales. The average number of days to sell is up 52% to 171 days.

Perspective

Prices for Old Town homes remain steady-up and number of annual sales show continued strength; particularly between $400,000 and $700,000 and above $1.5M. The number of June sales were very low, a combination of summer slowdown and overpriced inventory.  Inventory will remain low until prices rise enough to encourage sellers from the early 2000's back into the market.  Macroeconomic policies are in play for many second home buyers (small business owners face taxes & healthcare, 2nd home mortgage interest deduction) but are being offset by expanding the buyer market to non-US buyers - a speciality of Engel & Volkers.

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

Good luck.