Posted: Feb 05, 2020
Old Town Key West Home Sales in January Continue Strong
Sunset at Mallory Square

Ten single family homes sold in the Old Town Key West area in January, one more than the 5-year (2015 - 2019) average and continuing the strong sales shown in November 2019 (11 sales) and December 2019 (10 sales). Inventory is healthy at 131 properties for sale with 16 Contingent and 3 Pendingproperties in the For Sale pipeline. On Prices, the average sales price of $1.005M was the eleventh month of the last thirteen over $1M. Average sales price per square foot was $690, down from end of 2019's record figure of $819, as several sales are in needs of major-to-minor upgrading.

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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, 2011 to January 31, 2020. 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

  • Two, 1Bed/1Bath homes sold in the Old Town area thru 1/31/2020. The average number of days to sell was 60 days.
  • There are five1/1 homes for sale from $569K to $879K.
  • The 2020 average sale price of $618,000 is 11% more than the average sale price for 2019 and 217% above the 2011 low.
  • The nine homes sold in 2019 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 2020 homes sold was 820 sq.ft., largest on record. The average sale price per sqft. of $754 is 16% below 2019.

2 Bedroom/1 Bathroom

  • Zero, 2Bed/1Bath homes have sold in the Old Town area thru 1/31/2020.  The average number of days to sell in 2019 was 115 days.
  • The 2019 average Sold price of $560,000 was down 29% from 2018 which at $784K was up 41% from 2017. The $560K is 59% above the 2011 low.
  • Four 2/1 homes are for sale with prices from $625K to $1.289M.
  • Eleven 2/1 homes sold in 2017, twenty-five in 2018 and twenty-one in 2019.
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 203 sales.

2 Bedroom/2 Bathroom

  • Three, 2Bed/2Bath homes sold in the Old Town area thru 1/31/2020. The average number of  Days to sell was 94 Days.
  • The average sold price of $750,000 is down 16% from 2019 and is 77% above the low in 2009.
  • Seventeen 2/2's are for sale, priced between $774K and $1.5M.
  • The average Sold price per sqft for is $742, up 2% over 2019.  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 324 sales.

3 Bedroom/2 Bathroom

  • Three, 3Bed/2Bath homes have sold in the Old Town area thru 1/31/2020. The average number of Days to sell was 126 Days.
  • The average Sold price of $1,013,000 is down 20% from 2019 which was 20% above 2018 and is 120% above the 2009 low.
  • The average sold price per sqft. is $593, down 24% from 2019.
  • Twenty-seven in 2017, twenty-five in 2018 and twenty-six in 2019.
  • Since 2009, 3Bed/2Bath homes have been the 2nd biggest sellers in Old Town with 234 sales.

3 Bedroom/3 Bathroom

  • Two, 3Bed/3Bath homes sold in the Old Town area thru 1/31/2020. The average number of Days to sell was 1 Day. (Yes, one day).
  • The average sold price of $1.525M is up 11% from 2019 which was 11% below 2018. $1.525 is 107% above the 2010 low.
  • The average Sold price per sqft. of $1055 is up 38% from 2019 and is the highest recorded for 3/3 homes.
  • Twenty-two homes sold in 2017, seventeen in 2018 and twenty-six in 2019.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West

4 Bedroom/3 Bathroom

  • One, 4Bed/3Bath home has sold in the Old Town area thru 1/31/2020.  The number of days to sell was 69 days.
  • The sold price for this single sale was $1.475M, down 24% from 2019 and 75% above the 2009 low.
  • The sales price per sqft is $442, down 52% from 2019.
  • There are fourteen homes for sale, ranging in price from $1.375M 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

  • Zero, 4Bed/4Bath homes have sold in the Old Town area thru 1/31/2020. Five homes sold in 2019 at an average days on market of 52 days.
  • There are eleven 4/4's for sale ranging from $1.69M to $3.9M.
  • The 2019 average sold price of $2.43M was the same as 2018 which was up 15% over 2017.
  • The 2019 average sold price per sq.ft. of $1120 was up 23% over 2018. (Two of the sold houses were located in Truman Annex).
  • Since 2003, average number of annual sales is six, with six in 2017, fourteen in 2018 and five in 2019.  Despite the choppy number of sales, price action has been steady, $2M - $2.4M.

Conclusion

 

Confidence in the Key West real estate market, particularly the Old Town area, remains high. Low interest rates, with no foreseeable rise in the future, has expanded the buyer base and cash outs from the record setting US stock markets keeps Cash deals a prominent component of sales. Additionally, low property taxes, as a whole and per millage rate, do not cause the same Tax Cut and Jobs Act related concerns as other high cost areas.

 

The stock of affordable housing for buyers and renters remains at a critical level and will remain there until modifications are made in local Land Use Plans.  The second primary issue affecting home values going forward is flood insurance.  New FEMA Flood Insurance Rate Maps, to go into effect some time mid-late 2020, are drawing greater attention to the issue.  Buyers should inform themselves well about possible changes in flood insurance premiums and their mitigation options.

 

Meanwhile, the Old Town Key West residential and commercial real estate markets remain resilient.

 

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

 

Welcome to 2020!