tag:blogger.com,1999:blog-2740556909864494483.post7862152168406952294..comments2024-03-22T16:30:48.999-05:00Comments on Key West Properties: The Bottom of the Barrel - Key West Real EstateGary Thomashttp://www.blogger.com/profile/03006513292595034076noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2740556909864494483.post-87869337291062942862010-01-26T10:22:20.415-05:002010-01-26T10:22:20.415-05:00Hmmm, I was one of those "sold" statisti...Hmmm, I was one of those "sold" statistics in December. I'm not a first time buyer or a second home owner. While jumping through the hoops to secure financing is required, I did not have difficulty securing it. I researched this (Key West) housing market for 2 years before buying, and I can absolutely confirm, that for the type of home I purchased (2 BR/2 BA, old town location & little renovation needed), the inventory just isn't there. The market may suck up north where you are, but down here in paradise, it's heating up (no pun inte..., well, maybe pun intended).<br /><br />MikeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2740556909864494483.post-18071155464679830722010-01-26T04:10:59.212-05:002010-01-26T04:10:59.212-05:00Dear Anon: I will tell you who is buying homes.
(1...Dear Anon: I will tell you who is buying homes.<br />(1) Locals-first time owners who are getting $258,000 each in non interest mortgages from the Monroe County and Key West Housing Authority Impact Fee Proviso Funding. 18 individuals and families are getting the money to purchase homes priced under $400,000. <br />(2) Second home buyers who are getting a second chance to purchase a Key West dream vacation home (or condo or townhome) at an affordable price.<br />(3) Affluent second home buyers with cash that are looking for a quality property that can be purchased at a deep discount to its real value.<br /><br />There will be more short sales and more foreclosures. But everytime a new place comes on market in say the Golf Club, there are a bunch of ready, willing, and able buyers chomping at the bit to buy it if it is priced to sell. There is still an oversupply at Shipyard, which has yet to adjust to the new market. But when the prices fall there, as they must, Shipyard will bounce back as well.<br /><br />There are a lot of cash buyers waiting to purchase the big houses. A lot of big house owners are hurting. That is why some have their properties for sale in this down market. It just takes one buyer with an acceptable price or terms to turn a "for sale" into a "sold".<br /><br />BTW there is money to lend. Interest rates are still in the 5% range. <br /><br />GaryGary Thomashttps://www.blogger.com/profile/03006513292595034076noreply@blogger.comtag:blogger.com,1999:blog-2740556909864494483.post-9851802565778147502010-01-25T17:54:20.732-05:002010-01-25T17:54:20.732-05:00I disagree - we may be at the 'bottom of the b...I disagree - we may be at the 'bottom of the barrel' in Key West but just who is buying homes?<br /><br />December was the WORST month in 40 years history of real estate transactions. Broke records. okay, blame the tax credit expiring in November to some extent but I blame the idea that some feel that real estate housing market is in recovery. Far from it. There are more short sales and foreclosures that are not being reported. Do you realize that many banks won't even take back homeowner keys in lieu of foreclosure - they are that backed up in paperwork and homes? <br /><br />And don't forget the Fed is set to end its mortgage backed securities program in March. If the Feds are providing liquidity just where will the next buyer get his loan? From private sources which have long since dried up or from capital they have invested they wish to pull out now that the market is uncertain or from the banks which aren't lending and could be well set for a huge interest rate hike depending on if we get a new Fed Chair (don't start with me there as politics of such are too much to translate here).<br /><br />No, the housing market and in general all residential real estate (for now) is kaput, finn, gone bye-bye and dead as a doornail. Unless you have all cash to spend on a dying island lifestyle, I wouldn't part with money in this economic turmoil. <br /><br />No vacation house or second home is worth such risks even if you are a gambling fool. I wouldn't bet on a hurricane hitting the island or an earthquake hitting Haiti so why should I bet on real estate in Key West at the bottom of the barrel now? Every realtor in Key West has been saying that for the last three years and everyday more and more homes go lower and lower in price as there is no money to lend.Anonymousnoreply@blogger.com