After 62 months, sales of single family homes in Old Town continue to show strength, not only in sales and prices but in listings coming to contract as Expired and Cancelled listings are well below their five year averages. Admittedly average sales prices fell for 1bed/1bath and 4bed/3bath homes, yet other combination average sale prices moved up. One metric to watch is Days on Market as homes are taking longer to sell, a posible indication of a thinning buyer pool.
The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2006 to February 28, 2015.
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 neighborhood map here. The seven bed/bath combinations below contain enough sales to measure and evaluate trends after the 2004-2006 real estate Bubble.
One, 1Bed/1Bath home has sold in the Old Town area thru 2/28/2015. The sale price of $555,000 is 25% above the average sale price for 2014. In 2015 eleven homes sold, the most since 2010! Buyers are very choosey about buying small Old Town homes. The average size of the five for sale is 814 sq.ft., 31% larger than the 2010 - 2014 average. Yet, the average sale price of $636,000 is 70% higher, than the 2010 - 2014 average of $375,000.
Three, 2Bed/1Bath homes have sold in the Old Town area thru 2/28/2015. The average Sold price is 20% less than 2014 which was 13% more than in 2013. Seven 2/1 homes are for sale with prices from $390K to $822K. Fifteen 2/1 homes sold in 2011, sixteen in 2012 and twenty-one in 2013 but only fourteen in 2014! Why? Overpriced. Even so, since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town.
Eight, 2Bed/2Bath homes have sold in the Old Town area thru 2/28/2015. The average sale price of $660,000 is 11% below 2014 and 55% above the low in 2009. There are twenty-one 2/2's for sale, priced between $499,000 and $1.15M. Average price per sqft of these sixteen is $595, 26% more than the five year average of $470 per sqft. Since 2009, 2Bed/2Bath homes have been the biggest sellers in Old Town Key West.
Two, 3Bed/2Bath homes have sold in the Old Town area thru 2/28/2015. The average Sold price of $728,000 is 24% below 2014 which was 30% more than 2013 and is up 58% from the 2009 low. The average sold price per sqft. is $429. Twenty-one 3/2's sold in 2013 and twenty-sevn sold in 2014. The thirteen presently For Sale offer a wide range of price and matching quality. Since 2009, 3Bed/2Bath homes have been the second biggest sellers in Old Town Key West.
Four, 3Bed/3Bath homes have sold in the Old Town area thru 2/28/2015. The average Sold price of $1.11M is 9% less than 2014 which was 20% more than 2014. The average sold price per sqft. of $571 is 14% less than 2014 yet 6% above the 2009-2013 average. Twenty-seven 3/3's sold in 2012, the highest recorded, and twenty-six in 2013. There are fourteen 3/3's For Sale from $645K to $3.85M. Since 2009, 3Bed/3Bath homes have been the fourth biggest seller in Old Town Key West.
One, 4Bed/3Bath home has sold in the Old Town area thru 2/28/2015. The sale price of $885,000 is 49% lower than the 2014 average Sold price of $1.723M which was 59% more than the average Sold price for 2013. This Bed/Bath configuration has yet to solidly reverse price decline. HOWEVER. The twelve sales in 2012, the highest since 2008, and eleven sales in 2013, with a climbing average sales price per square foot, shows strength. There are ten 4/3's For Sale priced between $775K and $3.2M
One incredible 4Bed/4Bath home has sold in the Old Town area thru 2/28/2015. The sale price of $2.75M is 74% above the 2014 average Sold price of $1.577M which was 4% above 2013 and147% above the 2009 low. The average sold price per sqft of $808 is 33% above 2014. Since 2003 the average number of annual sales is six, with nine sold in 2013 and 10 in 2014. Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price.
Conclusion
January had eleven sales in Old Town. In February there were fourteen. Both these numbers are above their five year averages. Of the seven home types shown here, average sales price for two types are up and five are down.
Since the bottom in 2009/2010 buyers have been very cautious, value buying primarily in the larger three bedroom homes. In many instances, sellers who bought during the 2004 - 2006 run up are now seeing the opportunity to cash out.
Yet, sale prices have not returned to pre-bubble levels. If sellers ask for those pre-bubble levels, or more, then number of sales will stagnate, placing the five year run in rising prices and increasing number of sales in jeopardy.
It is imperative that Realtors focus on pricing to sell,(not buy the listing), provide credible pricing strategies and market their listings aggressively.