Posted: Jan 02, 2020
Old Town Key West Annual Home Sales Report 2019

Ten single family homes sold in Old Town Key West in December, bringing the total for 2019 to 144 sales; 5% above 2018, 19% above 2017 and 12% above 2016. Sales were steady throughtout the year with the 1st and 4th Qtrs showing above average strength. On Prices, December's average sale price of $833,000 was the 2nd month in 2019 below $1M yet the average for 2019 finished at $1.285M, highest recorded.  The average sale price per square feet ended 2019 at $819; 5% above 2018, 13% above 2017 and 18% above 2016.

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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, 2010 to December 31, 2019. 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 2019 full-year sales, neighborhood by neighborhood, 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

  • Nine, 1Bed/1Bath homes sold in the Old Town area thru 12/31/2019. The average number of days to sell was 78 days.
  • There are three 1/1 homes for sale from $590K to $608K.
  • The 2019 average sale price of $558,000 was 10% more than the average sale price for 2018 and 186% above the 2011 low.
  • The nine homes sold thru December tops total sales in 2018, 2017 and 2016.  In 2015, twelve homes sold, but sales had fallen every year since.
  • The average size of the 2019 homes sold was 624 sq.ft., equal to the 5-year average. The average sale price per sqft. of $894 is 8% above 2018

2 Bedroom/1 Bathroom

 

  • Twenty-one, 2Bed/1Bath homes sold in the Old Town area thru 12/31/2019.  The average number of days to sell was 115 days.
  • The average Sold price of $560,000 is down 29% from 2018 which at $784K was up 41% from 2017. The $560K is 59% above the 2011 low.
  • Two 2/1 homes are for sale with prices at $625K and $799K.
  • Sixteen 2/1's sold in 2016, eleven in 2017, twenty-five in 2018.
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 203 sales.

2 Bedroom/2 Bathroom

  • Thirty-six, 2Bed/2Bath homes sold in the Old Town area thru 12/31/2019. The average number of  Days to sell was 90 Days, 20% faster than 2018.
  • The average sold price of $892,000 is up 7% from 2018 and is 110% above the low in 2009.
  • Eighteen 2/2's are for sale, priced between $799K and $1.5M.
  • The average Sold price per sqft for 2019 was $724.  In 2018 the average was $747, in 2017 the average was $704.
  • Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 321 sales.

3 Bedroom/2 Bathroom

  • Twenty-six, 3Bed/2Bath homes have sold in the Old Town area thru 12/31/2019. The average number of Days to sell was 106 Days.
  • The average Sold price of $1,261,000 is up 20% from 2018 which was 2% above 2017 and is 174% above the 2009 low.
  • The average sold price per sqft. is $776, up 13% from 2018.
  • Fifteen 3/2's sold in 2016, twenty-seven in 2017 and twenty-five in 2018.
  • Since 2009, 3Bed/2Bath homes have been the 2nd biggest sellers in Old Town with 231 sales.

3 Bedroom.3 Bathroom

  • Twenty-six, 3Bed/3Bath homes sold in the Old Town area thru 12/31/2019. The average number of Days to sell was 128 Days.
  • The average sold price of $1.379M is down 11% from 2018 which was 9% above 2017.
  • The average Sold price per sqft. of $764 is down 10% from 2018 and is the first down year since 2010.
  • Nineteen homes sold in both 2015 and 2016 with twenty-two sales in 2017 and seventeen in 2018.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West

4 Bedroom/3 Bathroom

 

  • Six, 4Bed/3Bath homes sold in the Old Town area thru 12/31/2019.  The average number of days to sell was 120 days.
  • The average sold price for 2019 sales was $1.949M, up 5% over 2018 and 131% above the 2009 low.  The 5-year average sales price is $1.732M.
  • The average sales price per sqft is $924, up 23% over 2018.
  • There are eleven homes for sale, ranging in price from $950K to $3.75M.
  • 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

  • Five, 4Bed/4Bath homes have sold in the Old Town area thru 12/31/2019. Average days on market was 52 days.  Fourteen homes sold in 2018, the most on record.
  • There are nine 4/4's for sale ranging from $1.8M to $4.2M.
  • The 2019 average sold price of $2.43M is the same as 2018 which was up 15% over 2017.
  • The 2019 average sold price per sq.ft. of $1120 is up 23% over 2018. (Two of the sold houses are located in Truman Annex).
  • Since 2003, average number of annual sales is six, with eight in 2016, six in 2017 and fourteen in 2018.  Price action has been steady, $2M - $2.4M, despite a choppy number of sales.

Summary

 

Old Town Key West home sales experienced nearly all good news in 2019.  2/2's and 3/2's continue to dominate in number of sales and sale prices. Sale prices for 3/3's took pause and smaller homes in need of renovation were cherry picked.  Big homes remained a hard sell as most buyers prefer more manageable properties.

 

Sales and sale prices were unexpectedably upbeat in the 4th Qtr.  The 28 sales were the most since 2014 and the average sale price of $1.4M for the Qtr was tops for the year.

 

Cash buyers Closed 54% of sales and low interest rates qualified more buyers for their piece of paradise.

Conclusion

 

2019 started under the shadow of a dismal 2018 4th Qtr but quickly rebounded and never looked back. In January, Federal Reserve Chair Jerome Powell gave the first hints of suspending rate hikes.  Job and wage growth offset politics as both the Nasdaq and the S&P 500 hit closing highs.  May stumbled on tariffs and sanctions and fading hopes for a rate cut.  But the setback was short-lived as the Fed again signaled a possible rate cut and corporate activity across the board remained upbeat. A dull summer was jump-started by rate cuts in September and October with the year ending in a three month sprint to the finish.  2019 finished with the Nasdaq up 35% and the S&P 500 up 29%. Ample money without inflation and confidence in keeping it that way.

 

All this bodes well for Key West real estate.  As mentioned before, younger buyers of Key West real estate measure the value of a home here as it contributes to their overall portfolio. Their confidence in the US economy is reflected in the confidence of their purchases of jewel-box properties costing $700 - $1000 per square foot. Also known as the goodwill of 33040.

 

The primary unknowns are; can the City of Key West provide services commensurate with these prices and two, can the City successfully address the continuing problems of affordable housing and hikes in property insurances.

 

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

 

Good luck and welcome to 2020!