Posted: Jun 05, 2024
Key West Old Town home sales in May weaken
Key West Cemetery Remember the Maine

Ten single family homes sold in the Old Town area of Key West in May, bring the Jan-May total of sales to 56.  Fifty-six sales is 32% behind the 5-year (2019-2023) average of Jan-May sales; but, is three more than Jan-May 2023. Fifty-six sales is 41% behind Jan-May 2022 and 59% behind Jan-May 2021. No month in 2024 has even equaled the 5-year average of sales for that month.  On Prices, the average Sold price for the ten sales in May was $2.5M, topping $2M for the third time this year.  The average sold price per sqft YTD of $1299 is up 2% over full year 2023 and 11% over full year 2022.

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The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2015 to May 31, 2024. When there is a difference between total home sales and the sum of sales in the below seven charts it is because of a sale of, for instance, a 2bed/3bath or 3bed/1bath house or a house with more than four bedrooms.

 

These charts are for single family homes sold south and west of White St. and cover the six neighborhoods of The Meadows, Old Town North and South, Bahama Village, Truman Annex and Casa Marina but not Sunset Key.  You can view a map of the six neighborhoods of Old Town here.  An analysis of the number of sales and sale prices for each of these six neighborhoods for the full year of 2023 is here.

1 Bedroom/1 Bathroom

  • Five, 1Bed/1Bath homes have sold in the Old Town area thru 5/31/2024. The number of days on market was 71 days. For all 2023, seven homes sold at an average number of days to sell of 24 days.
  • The average Sold price for the five 2024 sales is $717K which is down 12% from 2023 yet 268% above the 2011 low. In 2023, seven homes sold at an average sale price for of $817K.
  • There are two 1/1's for sale priced at $949K and $1.1M
  • The 2024 sales have an average of 514 sqft at an average of $1394 per sqft.  In 2023, the average size was 603 sq.ft. and the average sold price per sqft. was $1356.

2 Bedroom/1 Bathroom

  • Six, 2Bed/1Bath homes have sold in the Old Town area thru 5/31/2024 at an average of 88 days to sell.  For all 2023, six homes sold at an average of 88 days to sell.
  • The 2024 average sold price of $979K is down 22% from 2023 and 194% above the 2011 low.
  • The 2024 average sold price per square foot of $1223 is down 2% from 2023 and is second highest ever.
  • There are seven 2/1's for sale priced between $1M and $2.56M
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 255 sales

2 Bedroom/2 Bathroom

  • Fourteen, 2Bed/2Bath homes have sold in the Old Town area thru 5/31/2024 at an average of 65 days on market. For all 2023, fifteen homes sold at an average of 46 days to sell. Fifteen sales was the fewest since 2008.
  • The 2024 average Sold price of $1.52M is down 7% from 2023 and 257% above the low in 2009.
  • Fourteen 2/2's are for sale, priced between $999K and $2.2M.
  • The 2024 average Sold price per sqft of $1294 is up 0% over 2023.
  • Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 458 sold.

3 Bedroom/2 Bathroom

  • Ten, 3Bed/2Bath homes have sold in the Old Town area thru 5/31/2024. The average number of Days to sell is 62 Days.
  • The average Sold price of $2.051M is up 18% over 2023 and is 345% above the 2009 low. The 2024 average sold price per sqft. is $1225, up 7% over 2023.
  • Sixteen 3/2 homes sold in 2023, fewest since 2016.
  • Since 2009, 3Bed/2Bath homes have been the 2nd biggest sellers in Old Town, routinely exceeding 20 sales annually. Total sales since 2009 is 359 sales.

3 Bedroom/3 Bathroom

  • Eight, 3Bed/3Bath homes have sold in the Old Town area thru 5/31/2024. The average number of days on market is 40 Days! For all 2023, 14 homes sold at an average of 110 Days.
  • The 2024 average sold price is $2.166M, down 11% from 2023 and 193% above the 2010 low. The 2024 average Sold price per sqft. is $1359, down 5% from 2023.
  • Fourteen homes sold in 2023, fewest since 2011.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West with 299 sales

4 Bedroom/3 Bathroom

  • Three, 4bed/3bath homes have sold in the Old Town area thru 5/31/2024 at an average of 31 days on the market. For 2023, 5 homes sold at an average of 40 days to sell. In 2022, 13 homes sold at an average of 66 days to sell.
  • The 2024 average sold price of $2.658M is down 15% from 2023 and is 271% above the 2009 low.
  • The 2024 sold price per sq.ft. of $1506 is down 32% from 2023.  2023 ended with the highest ever average sale price per sqft of $2210.
  • There are eleven 4/3 homes for sale priced between $1.895M and $5.6M

4 Bedroom/4 Bathroom

  • One, 4Bed/4Bath home has sold in the Old Town area thru 5/31/2024. For all 2023, nine homes sold at an average of 39 days to sell.  In 2022, nine homes sold at an average 49 days.
  • The 2024 sold price of $5M is up 66% over 2023 and is up 349% over the 2009 low. The 2024 sold price per sq.ft. of $1538 is up 38% over 2023.
  • Since 2003, the average number of annual sales is six, with nine in 2022, eighteen in 2021 and two in 2020.
  • Despite the choppy number of sales, price action has steadily climbed from $2.M in 2015 to $3M in 2023.

Conclusion

The Apr-June 2024 Green line shows Apr&May sales.

 

March, April, May and June are the meat of the year for closings in Old Town with 46% of annual sales.  March-May sales are short 24 sales or 58% off the pace. Sold prices Jan-May have average $1.997M.  Inventory is holding steady at 96 homes for sale with 5 Contingent and 5 Pending but with more homes for sale priced over $3M than there are under $2M the market can only clear so many homes at a time.

 

Florida continues to wrestle with wind and flood insurance though the overall wind insurance market is moving in a positive direction.  Eventhough wind and flood insurance in Key West (and Monroe County) is near exclusively Citizens Property Insurance (wind) and FEMA Risk Rating 2.0 (flood) some of this anxiety is ameliorated by the continued high percentage of Cash sales for Old Town homes, presently at 74%.

 

What to do? (OBTW - the supply/demand imbalance for rentals is causing rents to continue at record highs in Key West as well). 

 

Key West City Hall is presently prioritizing a makeover of the primary commercial district in town, Duval St. as well as a proposed $300M Bond offering which many people identify as a spending spree by the City government for the City government.  City Hall is also promoting a much delayed Green program which goal is to make the city more sustainable and resilient in the face of environmental challenges.  If housing is in crisis in Key West, then where are the broad based initiatives to fix them?

 

It's almost as if the civilian and military powers that be consider housing to not be in crisis!?

 

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

 

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