​Summer sales of all single family (SF) home configurations in the Old Town area, with the exception of August, were uneventful. Nine July sales @ an average sales price of $950K, fifteen in August @ $689K, five in September @ $735K and six in October @ $694K. There are twenty-one Contingent and Pending.  Days to sell remains high across the board as choosey Buyers demand value in a sluggish growth market.  Sellers beware of overpricing for even though pent-up buying abounds, external factors weigh heavy on Buyers’ ability to pull the trigger. There are 31 SF homes For Sale between $1M-$2M at an average of 271 days on the market!

The below charts show sales of the seven most popular bed/bath combinations in Old Town Key West from January 1, 2000 to September 30, 2013.

These charts are for single family homes sold south and 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.

Seven, 1Bed/1Bath homes sold in the Old Town area thru 10/31/2013. The average Sold price of $406,000 is the third 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 Bed homes. The average Price per SqFt is $559, second only to 4bed/4bath homes!  First time buyers have turned away from small Old Town homes, buying elsewhere or renting. Average number of days to sell, 165 days, is 30% less than 2012.

Nineteen, 2Bed/1Bath homes sold in the Old Town area thru 10/31/2013. The average Sold price of $411,000 is 12% more than 2012.  Price per sqft. of $419 is 8% above 2012 which was 6% above 2010. Seven 2/1 homes are for sale with prices up to $725,000. Sixteen, 2/1 homes sold in 2012, fifteen in 2011, so nineteen 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 down 4% over 2012 to 157 days.

Twenty-two, 2Bed/2Bath homes sold in the Old Town area thru 10/31/2013. The average Sold price of $583,000 is 5% less than 2012 but continues the recovery began in 2010. Price per sqft is $452, 12% less than 2012 and 3% 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 18% to 124 days. Lower average sales price, lower price per sq.ft and faster sales indicate well priced homes needing only minor updates.

Eighteen, 3Bed/2Bath homes sold in the Old Town area thru 10/31/2013. The average Sold price of $744,000 is 25% more than 2012 and is up 59% from the 2009 low. The price per sqft. of $509 is the highest since 2007. Eighteen 3/2's sold in 2012 so eighteen sales thus far is a good sign. The sixteen 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 rose 5% over 2012 to 197 days (Down from 309 at the end of May).

Eighteen, 3Bed/3Bath homes sold in the Old Town area thru 10/31/2013. (Three in May, Two in July, Two in Sep, 1 in Oct). The average Sold price of $980,000 is 7% more than 2012 and 31% above the 2010 low. The price per sqft. of $541 is 8% more than 2012 and 16% above the four year (2009-2012) average. Twenty-seven 3/3's sold in 2012, the highest recorded. There are fifteen 3/3's For Sale from $519K to $3.75M. Average number of days to sell is down 8% from 2012 to 125 days.

Nine, 4Bed/3Bath homes sold in the Old Town area thru 10/31/2013. (Three in July, One in August). The average Sold price of $1.082M is 12% less than 2012 but price per sqft. increased 3% to $481. 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 is climbing and the average sales price of $1.082M shows strength. There are eight 4/3's For Sale priced between $650K and $2.6M.

Nine, 4Bed/4Bath homes sold in the Old Town area thru 10/31/2013. The average Sold price of $1.522M is 70% above 2012 and 10% more than the 10-year average. The average cost per sqft of $571 is 49% more than 2012. Since 2003 the average number of sales is six homes, so nine sold thus far bodes well for sales. Year to year price action is choppy as a limited number of annual sales causes large fluctuations in average sales price. The average number of days to sell is up 43% to 161 days.

Conclusion

In many ways the US Buyer for second and vacation homes is tired. Unknown costs abound - economy, health care, jobs, flood insurance.  It is imperative to expand the buyer base. Many European, Asian and Middle Eastern buyers view the US real estate market as safe, transparent and liquid.  Foreign currencies remain stronger than the dollar. Sellers should operate with real estate companies that are engineered to attract not just domestic but non-US buyers to the Key West real estate market.  With 550 offices worldwide, the ONLY company in Key West designed to perform this task is Engel & Volkers Florida Keys.

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

Good luck!