​Sales of single family homes in the Old Town area for May 2013 stayed steady at twenty-two (March and April were 25 & 21).  At $847,000, May’s average sales price was almost identical to April’s $846,000 (March was $708,000).  The number of homes sales thru May 31st for most bed/bath combinations are at or have exceeded 50% of their total respective sales for 2012 with three and four bedroom homes continuing to lead the way. Sales price per square foot is up for all except 2bed/2bath as Buyers opt for renovated property. Will those who bought homes in the early-mid 2000’s view rising prices as an indicator that it is time to sell?

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2000 to May 31, 2013.

The graphs here are for single family homes west of White St. and cover the neighborhoods 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 before, during after the 2004-2006 real estate Bubble.

Four, 1Bed/1Bath homes sold in the Old Town area thru 5/31/2013. The average Sold price of $410,000 is the second highest since 2007 (notwithstanding a $1M sale in 2012).  Inventory of 1/1 homes is down as many were bought in the early 2000's and upgraded to 2 Bedroom homes.  Sellers of unimproved homes have not discounted fix-up costs.  Also, first-time buyers have turned away from small Old Town homes, buying elsewhere or renting. Average number of days to sell, 232 days, is down 2% from 2012.

Ten, 2Bed/1Bath homes sold in the Old Town area thru 5/31/2013. The average Sold price of $390,000 is 6% more than 2012.  Price per sqft. of $424 is 9% above 2012 yet only the 2nd increase since 2005. Seven 2/1 homes are for sale with prices up to $644,000. Sixteen, 2/1 homes sold in 2012, so ten Sold and seven in the pipeline bode well for 2013 sales of the 3rd most popular home in Old Town. Average number of days to sell is up 4% over 2012 to 171 days.

Thirteen, 2Bed/2Bath homes sold in the Old Town area thru 5/31/2013. The average Sold price of $499,000 is 18% less than 2012 but clearly continues the upward recovery began in 2010. Price per sqft is $425, 17% less than 2012 and 8% less than the five year average of $465 per sqft. Twenty-eight, 2/2 homes sold in 2012, the second highest since 2004.  2Bed/2Bath homes are the biggest sellers in Old Town Key West. Average number of days to sell fell 20% to 121 days.

Of the 84 single family homes sold in the Old Town area thru May 31st, 34 had three bedrooms.

Nine, 3Bed/2Bath homes sold in the Old Town area thru 5/31/2013. The average Sold price of $550,000 is 7% less than 2012 but is up 19% from the 2009 low. The price per sqft. of $423 is the highest since 2008. Eighteen 3/2's sold in 2012 so nine sales thus far is a good sign. The seven for sale offer a wide range of price and matching quality. The ten year average of number sold per year is 18. Average number of days to sell increased 65% to 309 days.

Sixteen, 3Bed/3Bath homes sold in the Old Town area thru 5/31/2013. (Only one in May). The average Sold price of $881,000 is 3% less than 2012 and 19% above the 2010 low. The price per sqft. of $492 is 2% less than 2012 yet 5% above the four year (2009-2012) average. Twenty-seven 3/3's sold in 2012, the highest recorded. Fifteen of the sixteen 3/3's for sale are $1M+. Average number of days to sell is up 7% to 147 days.

Five, 4Bed/3Bath homes sold in the Old Town area thru 5/31/2013 (Three in May). The average Sold price of $1.232M is identical to 2012 but price per sqft. increased 26% to $590. This Bed/Bath configuration has yet to reverse price decline. HOWEVER. The twelve sales in 2012 was the highest since 2008, average sales price per sqft foot was the second highest since 2008 and the average sales price of $1.232M shows strength. Of note, there is only one 4/3 for sale as of June 1, 2013.

Four, 4Bed/4Bath homes sold in the Old Town area thru 5/31/2013. The average Sold price of $1.506M is 68% above 2012 and 10% more than the 10-year average. The average cost per sqft of $755 is 95% more than 2012  and 28% above the 10-year average. Since 2003 the average number of sales is six homes, so four sold thus far bodes well for sales. The average number of days to sell is down 43% to 64 days.

Perspective

Prices overall for Old Town remain steady-up and number of sales show continued strength.  Inventory will remain low until prices rise enough to encourage sellers from the early 2000's back into the market.  Macroeconomic policies are in play for some second home buyers (mortgage interest deduction) but are being offset by expanding the buyer market to non-US buyers.

Good luck.

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