​Single family home sales in Old Town continue their slow push into record territory in either number of sales, or higher recent sale prices. The bottom of 2010 is past and mostly forgotten as smart buyers and sellers each negotiate to their advantage. Summer has slowed but not stalled (see Conclusion).  Unlike the emotional buying of 2002 - 2006, when buyers bought to the point of exhaustion, today’s buyers; cash, mobile, boomer and international, choose carefully. Buyers are generally buying up the Price per SqFt for remodeled homes. Sellers of un-renovated homes Must price their homes lower. Value has replaced growth, containing appreciation and keeping a lid on inventory.

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

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.

Seven, 1Bed/1Bath homes sold in the Old Town area thru 9/30/2013. The average Sold price of $406,000 is the second highest since 2007 (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 1Bed/1Bath 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, 165 days, is 30% lower/faster than 2012

Twenty-three, 2Bed/1Bath homes sold in the Old Town area thru 9/30/2013. The average Sold price of $419,000 is 14% more than 2012.  Price per sqft. of $441 is 13% above 2012 and is the largest increase since 2005. Six 2/1 homes are for sale with prices up to $725,000. Twenty-three sales of 2/1 homes thus far is the highest since 2005! Six for sale in the pipeline bode well for 2013 sales of the 3rd most popular home in Old Town. Average number of days to sell, 165, is the same as 2012.

Twenty, 2Bed/2Bath homes sold in the Old Town area thru 9/30/2013. The average Sold price of $583,000 is 5% less than 2012 yet is 37% above the 2009 low. Price per sqft is $452, 12% less than 2012 and 3% 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 5% to 124 days. Lower average sales price, lower price per sq.ft and faster sales indicate well priced homes needing only minor updates.

Seventeen, 3Bed/2Bath homes sold in the Old Town area thru 9/30/2013. The average Sold price of $746,000 is 26% higher than 2012 and is up 62% from the 2009 low!! The price per sqft. of $507 is the highest since 2007. Eighteen 3/2's sold in 2012 so seventeen sales thus far is a good sign. The seventeen presently 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 11% to 207 days (Down from 309 at the end of May).

Nineteen, 3Bed/3Bath homes sold in the Old Town area thru 9/30/2013. (Three in May, Two in July, One Sep). The average Sold price of $1.35M is 13% more than 2012 and 40% above the 2010 low. The price per sqft. of $565 is 13% more than 2012 and 19% above the four year (2009-2012) average. Twenty-seven 3/3's sold in 2012, the highest recorded. Eleven of the twelve 3/3's for sale are $1M+. Average number of days to sell is up 4% over 2012 to 142 days.

Nine, 4Bed/3Bath homes sold in the Old Town area thru 9/30/2013.  The average Sold price of $1.082M is 12% less than 2012 but price per sqft. increased 3% to $481. 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 $1.082M shows strength. There are nine 4/3's for sale priced between $650K and $2.6M.

Nine, 4Bed/4Bath homes sold in the Old Town area thru 9/30/2013, the highest recorded. The average Sold price of $1.545M is 73% above 2012, the highest since 2006 and is 11% more than the 10-year average. The average cost per sqft of $594 is 53% more than 2012. Since 2003 the average number of sales is six homes, so nine sold thus far bodes well for sales. The average number of days to sell is up 49% to 167 days.

Conclusion

Prices for Old Town homes remain steady-up and number of annual sales show continued strength. Nine sales in July,  fifteen in August and five in September reflects not just an overpriced (low) inventory but a tired U.S. buyer.  Many second home US buyers are on the sideline.  It is imperative to expand the buyer base. Many European, Asian and Middle Eastern buyers view the US real estate market as a safe, transparent and liquid.  Sellers must operate with real estate companies that are engineered to attract not just domestic but non-US buyers to the Key West real estate market.  The ONLY company in Key West designed to perform this task is  Engel & Volkers Florida Keys.

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

Thank you and Good luck!