Ten single family homes sold in the Old Town area in July; down from 14 sales in July 2016 and below the 5-year average of 13. Except for February, sales every month in 2017 have been at or below their 5-year average. The 5-year average number of sales for Jan - July is 96. Thru July 2017 the number is 84. Average sales prices too have softened. Only average sales prices of 2bed/2bath homes have strength, up 27% thru July 2017. Overall, prices stay high. July's average sales price for the ten sales was $1.22M with a median of $1.11M.  Average sales price per square foot thru July of $724 is unchanged from 2016 but is 26% above the 5-year average.

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2007 to July 31, 2017. 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 neighborhoods of The Meadows, Old Town, Truman Annex and Casa Marina but not Sunset Key.  You can view a map of the six neighborhoods of Old Town here and an analysis of 2017 mid-year sales, neighborhood by neighborhood, here.

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

• Three, 1Bed/1Bath homes have sold in the Old Town area thru 7/31/2017. The average number of days to sell is 59 days.
• There are three 1/1's for sale ranging from $559K to $1.595M.
• The 2017 average sale price of $557,000 is 12% above the average sale price for 2016.
• In 2014, eleven homes sold. In 2015, twelve homes sold, the most since 2001. In 2016, 9 sold.
• The average size of the 2017 homes sold is 596 sq.ft., about average; however, the average sale price per sqft. is $934, 17% above 2016 and highest ever.

• Five, 2Bed/1Bath homes have sold in the Old Town area thru 7/31/2017.  The average number of days to sell is 221 days.
• The average Sold price of $532,000 is down 9% from 2016 which at $582K was unchanged from 2015.
• Eight 2/1 homes are for sale with prices from $429K to $1.2M.
• Twenty-three homes sold in 2015, sixteen in 2016.
• Since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town with 151 sales.

2Bed/2Bath has the most sales, 18, and average sales prices up a market best 26% thru July.

• Eighteen, 2Bed/2Bath homes have sold in the Old Town area thru 7/31/2017. The average number of  Days to sell is 110 Days.
• The average sold price of $874,000 is up 27% from 2016 and is 106% above the low in 2009.
• Telve 2/2's are for sale, priced between $465,000 and $1.45M.
• The average Sold price per sqft for 2017 is $695.  In 2016 the average was $614.
• Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West with 251 sales.

• Fifteen, 3Bed/2Bath homes have sold in the Old Town area thru 7/31/2017. The average number of Days to sell is 99 Days.
• The average Sold price of $934,000 is down 10% from 2016 which was 11% above 2015 and is 103% above the 2009 low.
• The average sold price per sqft. is $655, down 6% from 2016.
• Twenty-seven 3/2's sold in 2014, twenty-one sold in 2015 but only fifteen in 2016.
• Since 2009, 3Bed/2Bath homes have been the 2nd biggest sellers in Old Town with 168 sales.

• Seventeen, 3Bed/3Bath homes have sold in the Old Town area thru 7/31/2017. The average number of Days to sell is 79 Days.
• The average sold price of $1.349M is down 6% from 2016 which was 20% above 2015.
• The average Sold price per sqft. of $785 is up 7% from 2016 and is the highest since 2005.
• Twenty-three 3/3's sold in 2014, nineteen in 2015 and nineteen in 2016.
• Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West.

• Six, 4Bed/3Bath homes have sold in the Old Town area thru 7/31/2017. The average number of Days to sell is 51 days.
• The average sale price of $1.488M is 27% below 2016 with the 5-year average sales price of $1.525M.
• The average Sold price per sq.ft. is $813, down 4% from 2016 and is well above the 5-yr average of $638.
• Number of sales and sales prices for 4Bed/3Bath homes is very choppy though there has been an upward trend in average sale price since 2013.

• Six, 4Bed/4Bath homes have sold in the Old Town area thru 7/31/2017. Average number of Days to sell is 185 days.
• There are five 4/4's for sale ranging from $1.695M to $2.785M.
• The 2017 average Sold price is $2.103M, down 1% from 2016 which was 4% above the 2015.
• The 2017 average sold price per sq.ft. of $762 is 6% below 2016.
• Since 2003, average number of annual sales is six, with nine sold in 2013, ten in 2014, six in 2015 and eight in 2016.
• Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price.

Summary

Basing or stagnating. Either perspective is accurate.  The real estate market bottomed in 2009/2010 and has been in a "V" bottom recovery ever since.  "V" bottom as in, the market fell hard from 2005, bottomed and rebounded sharpley, like a "V".  So, why not take a breather after 7 years of rising prices and number of sales.

Additionally, remember the Key West real estate market is nearly an all volunteer market.  The percentage of home sales due to job relocation is very small.  Buyers overwhelmingly choose to buy Key West for the notoriety of 33040. The stock market, a reliable source of cash for the cash buyers who make up 58% of Old Town home sales, continues to race forward.  Are these buyers getting cold feet or are they voting with their feet and taking their cash elsewhere?

So is the market in the first year of a bear slide or just catching its breadth before the next leg up?  What are the fundamentals of the Key West market and can your Realtor really deliver a sale by pricing your property at 20% above the going rate?

If you have any comments or question. please contact me here.

Good luck!