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Wednesday, December 3, 2008

For the Disbelievers

I like it when people make comments on the blog. I know people are reading that way. But I wonder how many individual commentators there are. Sometimes a post of mine will generate several comments that all agree we are in a world of doom and gloom and that only fools would buy in today's real estate market. They declare that asking prices are way too high, sales are way too weak, and that disaster is on the horizon.

I have heard many fellow Realtors predict that we only have a few more months of slow sales before the market turns around.

I do not believe in the doomsday theory of real estate. And I don't think we are nearly over the hurdle, at least nationally. I read the Monroe County Clerk's website and I can see that attorneys for foreclosing lenders continue to post lis pendens against borrowers every day. So I know that the foreclosures are not about to stop.

Some disbelievers argue that prices in Old Town, the area that historically drives the real estate market in Key West, are too high for locals to afford. That has been true for about two decades. It is not going to change. But the same disbelievers disregard the fact that a lot of houses that are selling are very well priced.

I just created a list CLICK HERE of single family homes in Key West with at least two bedrooms that are offered at $400,000 or below. Checkout the list. There are some nice houses there. And the offering price is just that. Any reasonable seller expects to negotiate a price or terms acceptable to both the seller and buyer.

At least six of the houses on the list are bank owned properties. That means that the emotion of selling is gone and that the person making the price decision is looking at numbers. Sometimes the bank asset managers get it right. Sometimes they don't. If property sits around too long, somebody is not doing their job correctly or there is something dreadfully wrong with the property.

Local buyers looking for a family home in Key West that want to take advantage of some of the perks some bank owners are offering should specifically look at these houses: 1026 12th Street, 1008 18th Terrace, 3041 Flagler Avenue (it's a great deal), 1617 Duncan Street, 2918 Flagler Avenue, and 309 Julia Street.

Most second home buyers prefer the Old Town, Casa Marina, and The Meadows areas over Mid Town and New Town. Let the second home owners pay more per square foot for a smaller home and a small lot. Locals can then buy the larger properties with bigger lots at cheaper prices. Prices are down and interest rates are now at about 5.5% or less for 30 year fixed rate loan. (Source: Quicken Loans Dec.3, 2008)

If you are thinking of buying a house in Key West, now is a good time to look. There are a lot of desperate sellers. Banks are looking to move assets off the books by the end of December. Remember, with banks it is only numbers. CLICK HERE to search the Key West mls and find the house that you want to make into a home, and then, please call me, Gary Thomas, 305-766-2642 or e-mail me at Let me help you find your place in Paradise. Remember, the Disbelieves don't believe in Santa Claus either.


Anonymous said...

Headline from the online version of 12/3/08 Key West Citizen:

'Skyrocketing foreclosures swamp Monroe County courts'

Not a great way to advertise the real estate market in Key West and how it is a great time to look. Not to a local.

Anonymous said...

I am a regular reader and an occasional poster. I keep hoping my house will sell and that I can buy the Key West house of our dreams while the market is down...

I think you have a lot of discrete readers.

Gary Thomas said...

Thanks for the nice comment.

There are a lot of people that still want to buy and that are looking right now.

I've received emails from several readers who are coming to Key West during Christmas with the intention of buying.

I still believe in Santa Claus--I never stopped.

I also believe we will get through with this awful economy.



The information on this site is for discussion purposes only. Under no circumstances does this information constitute a recommendation to buy or sell securities, assets, real estate, or otherwise. Information has not been verified, is not guaranteed, and is subject to change.


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Gary Thomas in a Nutshell

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Key West, Florida, United States
I first read about Key West in a magazine called "After Dark" sometime in the mid 1970's. But it wasn't until March 1984 that I made my first visit to the island that would become my home. I had two weeks for a vacation and reserved a room at Colours Guesthouse (now Marrero's Guest House) for one week. I thought that if I didn't like Key West, I could always go back to Miami or Ft. Lauderdale for the rest of my trip. But after a couple of days in Key West, that was no longer a consideration. But when I wanted to extend my stay for the extra week I found there was no room at the inn. The guesthouse owner did find me a room at LaTeDa, the infamous guesthouse/restaurant. That's a story I'll write another day. But those two weeks in Key West gave me the realization that I had found Paradise. Key West has been my home since 1993 and my only regret is that it took me so long to get here. I am a full time Realtor at Preferred Properties CRI. Let me help you find your new home or business in Paradise. Living in Paradise is not a slogan, it's a way of life.