​Larger two bedroom and three bedroom single family homes in Old Town Key West continue their third year of cautious sales.  Sales prices are rising and number of sales are increasing modestly - both signs of strength and stability.  Cash buyers are present at every price level.  A constrained inventory has created a modest-to-high level of pent-up buying.  But, buyers are well educated. 90% use internet tools to evaluate price and property before contacting a Realtor. If your property is well priced, it will sell, if not, then not.  Sellers should focus on brokers and agents with broad buyer bases - particularly those who have access to international buyers.

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2000 to November 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 have sold in the Old Town area thru 11/30/2013 (None since August). The average Sold price of $406,000 is the third highest since 2007 (notwithstanding a $1M sale in 2012).  The average Price per SqFt is $559, third behind 3bed/3bath and 4bed/4bath homes!  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% less than 2012.

Twenty, 2Bed/1Bath homes have sold in the Old Town area thru 11/30/2013. The average Sold price of $415,000 is 13% more than 2012.  Price per sqft. of $438 is 13% above 2012 which was 6% above 2010. Six 2/1 homes are for sale with prices up to $725,000. Sixteen, 2/1 homes sold in 2012, fifteen in 2011, so twenty sold and six in the pipeline bode well for 2013 sales of the 3rd most popular home in Old Town. Average number of days to sell is down 4% from 2012 to 157 days.

Twenty-two (two in Nov), 2Bed/2Bath homes have sold in the Old Town area thru 11/30/2013. The average Sold price of $577,000 is 6% less than 2012 but continues the recovery began in 2010. Price per sqft is $461, 12% less than 2012. The five year average is $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 23% to 116 days. Lower average sales price, lower price per sq.ft and faster sales indicate correctly priced homes needing only minor updates.

Twenty-one (3 in Nov), 3Bed/2Bath homes have sold in the Old Town area thru 11/30/2013. The average Sold price of $741,000 is 25% more than 2012 and is up 59% from the 2009 low. The price per sqft. of $496 is the highest since 2007. Eighteen 3/2's sold in 2012 so twenty-one sales thru Nov. is outstanding. The twelve 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 5% over 2012 to 177 days (In May it was 309 days).

Twenty-one, 3Bed/3Bath homes have sold in the Old Town area thru 11/30/2013. (Two in Sep, 1 in Oct, 3 in Nov). The average Sold price of $1.08M is 19% more than 2012 and 35% above the 2010 low. The price per sqft. of $572 is 14% more than 2012 and 21% above the four year (2009-2012) average. Twenty-seven 3/3's sold in 2012, the highest recorded. There are thirteen 3/3's For Sale from $519K to $3.75M. Average number of days to sell is down 9% from 2012 to 124 days.

Nine, 4Bed/3Bath homes have sold in the Old Town area thru 11/30/2013. (None since August). 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 is climbing and the average sales price of $1.082M shows strength. There are nine 4/3's For Sale priced between $650K and $3.5M.

Nine, 4Bed/4Bath homes have sold in the Old Town area thru 11/30/2013 (None since August). The average Sold price of $1.522M is 70% above 2012 and 10% more than the 10-year average. The average cost per sqft of $571 is 47% more than 2012. Since 2003 the average number of sales is six homes, so nine sold thru Nov is 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 43% to 161 days.

Conclusion

In many ways the US Buyer for second and vacation homes is value oriented and guarded. It is imperative to expand the buyer base. Many European, Asian and Middle Eastern buyers view the US real estate market as safe, transparent and liquid. Sellers should work with real estate companies that are 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 worldwide, the ONLY company in Key West designed to reach the international buyer is Engel & Volkers Florida Keys.

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

Good luck!