Posted: Aug 03, 2023
Old Town Key West home sales in July continue lower

Five single family homes sold in the Old Town area of Key West in July, bringing the YTD total of sales to 65.  Sixty-five sales is 38% behind the 5-year (2018-2022) average of Jan-July sales of 105, 45% behind Jan-July 2022 sales and 65% behind Jan-July 2021 sales. Inventory of homes for sale is down slightly (Summer slump) to 55 properties and Cash remains dominant at 69% of the 65 sales.  On Prices, the average sold price for July was $1.785M, bringing the Jan-July average sold price to $2.198M, up 29% YTD.  Average sold price per sqft Jan-July is $1444, up 24% YTD.

________________________________________________________________________________________

 

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2014 to July 31, 2023. 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 1st half of 2023 is here.

1 Bedroom/1 Bathroom

  • Six,1Bed/1Bath homes have sold in the Old Town area thru 7/31/2023. Average days on market was 27 days. For all 2022, eight homes sold at an average number of days to sell of 60 days.
  • The average Sold price for these six sales is $745K which is down 36% from 2022 yet 282% above the 2011 low. In 2022, the average sale price for the 8 sales was $1.16M, highest ever.
  • There are Zero 1/1's for sale.
  • The 2023 sales have an average size of 572 sqft at $1303 per sqft.  In 2022, the average size was 789 sq.ft. and the average sale price per sqft. of $1471 was highest ever.

2 Bedroom/1 Bathroom

  • Three, 2Bed/1Bath homes have sold in the Old Town area thru 7/31/2023 in an average of 66 days to sell.  For all 2022, fourteen homes sold at an average of 42 days to sell.
  • The 2023 average sold price of $1.465M is up 52% over 2022 and 341% above the 2011 low.
  • The sold price per square foot in 2023 of $1021 is up 33% over 2022 which was 21% above 2021.
  • There are nine 2/1 homes for sale priced between $899K and $1.4M.
  • Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 246 sales.

2 Bedroom/2 Bathroom

  • Eleven, 2Bed/2Bath homes have sold in the Old Town area thru 7/31/2023 with an average of 44 days on market. For all 2022, thirty-seven homes sold at an average of 45 days to sell.
  • The 2023 average Sold price of $1.66M is up 24% over 2022 and 291% above the low in 2009.
  • Seven 2/2's are for sale, priced between $1.3M and $3.5M.
  • The 2023 average Sold price per sqft of $1250 is up 13% over 2022.
  • Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 440 sold.

3 Bedroom/2 Bathroom

  • Twelve, 3Bed/2Bath homes have sold in the Old Town area thru 7/31/2023. The average number of Days to sell is 79 Days.
  • The average Sold price of $1.776M is up 4% from 2022 and is 285% above the 2009 low.
  • The average sold price per sqft. is $1136, down 1% from 2022.
  • Twenty-seven 3/2 homes sold in 2022, 3rd 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 345 sales.

3 Bedroom/3 Bathroom

  • Six, 3Bed/3Bath homes have sold in the Old Town area thru 7/31/2023 at an average of 104 Days to sell. For all 2022, 18 homes sold at an average of 40 Days, fastest ever.
  • The 2023 average sold price of $2.4M is up 5% from 2022 and 227% above the 2010 low.
  • The average Sold price per sqft. of $1564 is up 28% over 2022.
  • Forty-one homes sold in 2021, nineteen homes sold in 2020.
  • Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West with 283 sales.

4 Bedroom/3 Bathroom

  • Three, 4bed/3bath homes have sold in the Old Town area thru 7/31/2023 at an average of 11 Days to sell. For all 2022, 13 homes sold at an average of 66 days to sell.
  • The 2023 average sold price of $2.99M is down 16% from 2022 and is 254% above the 2009 low.
  • The 2023 average sales price per sq.ft. of $2109, highest ever, is up 49% over 2022.
  • There are four 4/3 homes for sale priced between $2.2M and $3.8M.

4 Bedroom/4 Bathroom

  • Six, 4Bed/4Bath homes have sold in the Old Town area thru 7/31/2023 at an average of 38 days to sell. For all 2022, nine homes sold at an average 49 days.
  • The 2023 average sold price of $3.26M is down 2% from 2022 and is up 193% over the 2009 low.
  • The 2023 average sold price per sq.ft. of $1121 is down 13% from 2022.
  • 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 $3.3M in 2022.

Conclusion

 

As of August 1st, there are 6 Contingent and 3 Pending contracts for sale indicating the slowdown will continue through the summer.  Of the 55 homes for sale, there are:

  • Three below $1M
  • Nineteen between $1M - $2M
  • Fourteen between $2M - $3M
  • Nineteen over $3M

Cash buyers have stepped up their percent of sales from the normal 50%-52% range to the 65%-69% range as pre-retirement buyers take cash out of rising stock markets to buy investment real estate to diversify their investment portfolio.  Be mindful, the higher percentage of cash sales is calculated against a significant reduction in total sales.

 

Mortgage buyers have been largely priced out of the market and affluent cash buyers are weighing the relative value of Old Town Key West real estate against other equivalent resort/investment locations and Key West, at least for the past six Quarters, has lost ground.

 

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

 

Good luck!

 

Since Q3 2021, eight quarters of down sales

 

Additional resources: