Posted: Jul 02, 2021
Old Town Key West 1st Half 2021 Home Sales Report
Key West 1912

The 1st Half of 2021 has shattered every sales and price record for single family home sales in Old Town Key West. The 5-year (2016 - 2020) average for annual home sales is 135. The number of homes sold in the 1st Half of 2021 was 164. 1st Qtr sales 71, 2nd Qtr sales 93. Each month's number of sales at least double the 5-year average for that month. Cash sales at 53%. List Price:Sale Price ratio 94%. On prices, the 1st Half average sold price of $1.67M is the highest EVER (see chart below) and is UP 30% since the end of 2020. The 1st Half 2021 average sold price per square foot of $913, aided by June's record average of $1032 per sqft, is up 18% since the end of 2020.

________________________________________________________________________________________

 

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2012 to June 30, 2021. 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.  A neighborhood by neighborhood analysis of 1st Half 2021 sales, is here.

 

The seven bed/bath combinations below contain enough sales to measure and evaluate trends after the 2004-2006 real estate Bubble.

1 Bedroom/1 Bathroom

  • Six, 1Bed/1Bath homes have sold in the Old Town area thru 6/30/2021. The average number of days to sell is 148 days. (One house was on market for 745 days).
  • There are three 1/1 homes for sale priced between $840K and $995K.
  • The 2021 average sale price of $512,000 is down 5% from 2020 and is 162% above the 2011 low.
  • In 2020 there were ten sales, the best since 2015 when twelve homes sold.
  • The average size of the 2021 homes sold is 524 sq.ft., well below average. The average sale price per sqft. of $976 is 16% above 2020.

2 Bedroom/1 Bathroom

  • Eleven, 2Bed/1Bath homes have sold in the Old Town area thru 6/30/2021 at an average days on market of 28 days.
  • The 2021 average Sold price of $836,000 is up 33% over 2020 which was up 12% over 2019. The $836K is 152% above the 2011 low.
  • The average sold price per square foot of $856 is up 23% over 2020.
  • Two 2/1 homes are for sale with prices from $685K to $875K.
  • Twenty-one homes sold in 2019, eight in 2020.
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 222 sales

2 Bedroom/2 Bathroom

  • Twenty-eight, 2Bed/2Bath homes have sold in the Old Town area thru 6/30/2021. The average number of Days to sell is 61 Days.
  • The average sold price of $1.061M is up 17% over the 2020 end of year price of $905K, which was the highest average sold price since 2006.  $1.061M is 150% above the low in 2009.
  • Four 2/2's are for sale, priced between $1.19M and $1.795M.
  • The 2021 average Sold price per sqft is $896, up 17% from 2020.  In 2020 the average was $768, in 2019 the average was $724.
  • Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 377 sales.

3 Bedroom/2 Bathroom

  • Twenty-nine, 3Bed/2Bath homes have sold in the Old Town area thru 6/30/2021. The average number of Days to sell is 81 Days.
  • The average Sold price of $1,341,000 is up 21% over 2020 and is 191% above the 2009 low.
  • The average sold price per sqft. is $885, up 20% over 2020.
  • Twenty-six homes sold in 2019, thirty in 2020, the most ever.
  • Since 2009, 3Bed/2Bath homes have been the 2nd biggest sellers in Old Town, exceeding twenty sales every year since 2013 except in 2016. Total sales since 2009 is 290 sales.

3 Bedroom/3 Bathroom

  • Twenty-nine, 3Bed/3Bath homes have sold in the Old Town area thru 6/30/2021. The average number of Days to sell is 104 Days.
  • The 2021 average sold price of $1.706M is up 14% over 2020 which was up 8% over 2019. $1.706M is 131% above the 2010 low.
  • The average Sold price per sqft. of $959 is up 3% from 2020 and is the highest ever recorded for 3/3 homes.
  • Twenty-six homes sold in 2019 and nineteen in 2020.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West with 247 sales.

4 Bedroom/3 Bathroom

  • Ten, 4bed/3bath homes have sold in the Old Town area thru 6/30/2021. The average number of days to sell is 107 days.
  • The average sold price of $2.296M, is up 43% from 2020 and is 172% above the 2009 low. There are two homes for sale, priced at $3.2M and $3.39M.
  • Sixteen 4/3's sold in 2020, more than 2019 and 2018 combined and was the highest annual total since seventeen sold in 2008.
  • The 2021 sales price per sqft of $974 is up 33% over 2020 and is the highest ever.
  • Number of sales and sales prices for 4Bed/3Bath homes is very choppy though there has been an erratic up trend in average sale price since 2013.

4 Bedroom/4 Bathroom

  • Fifteen, 4Bed/4Bath homes have sold in the Old Town area thru 6/30/2021. Average number of Days to sell is 73 days. Fifteen Solds is the most sold since 2018 which was 14.
  • The 2021 average sold price of $2.407M is down 3% from 2020 which was up 3% over 2019 and is up 124% over the 2009 low.
  • The 2021 average sold price per sq.ft. of $922 is down 18% from 2020.
  • Since 2003, average number of annual sales is six, with fourteen in 2018, five in 2019 and two in 2020.  Despite the choppy number of sales, price action has been steady, $2.1M - $2.5M.

Summary

 

June 2020 it was "Head for the Hills".  June 2021 and it's "The Hills are Alive with the Sound of Music".  Every near-term economic indicator points up and Key West continues to represent a safe haven both for residence and investing. Does federal debt even matter any more?

 

Sales of large homes in Old Town continue to dominate the market.  No more just couples, but entire households are moving to Old Town.  Buyers are buying enough square footage to provide at least optional, if not permanent, sanctuary for their entire family. Will City services keep up?

Conclusion

 

Two flies in the ointment. 

 

The CDC Moratorium on rent eviction ends July 31.  Then what? Landlords know well the rental market is exceedingly tight in Key West.  For those renters behind on their rent and who have not squirreled away enough cash to satisfy the cash needs of their landlord, will it be a game of Musical Chairs to the highest bidder?

 

Second, according to the Key West Chamber of Commerce data, the Key West job market has bounced back to near full employment with many, many employers whose employees must be onsite; auto repair, construction, skilled wait staff, pool and tree maintenance, desperate to hire full time workers. These workers are essential to growing a business. Yet, hourly workers have no reasonably priced place to live.

 

Isn't Quality of Life due to those whose skill set is paid for by the hour just as much as to those who pay $900 per square foot for their Key West hideaway.

 

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

 

Good luck!