Are We There Yet?

People ask me if we have reached the bottom of the real estate market or if I think we almost there. It's like a kid asking "Are we there yet?". The uncertainty of the market drives some would-be buyers half nuts. They want to buy, but they don't want to pay too much. They want the deal of a lifetime without having to worry that someone else may get a better deal by waiting a little longer. It's like sitting in a hospital waiting room. You expect the worst and hope for the best. I guess more people prefer some finality over more uncertainty.

The chart above was borrowed from The Catherine "Cathy" Chaudemanche Team at Keller Williams Realty on this same topic. CLICK HERE to read that concise and very well written essay on real estate market cycles. The writer asked the same question as I did, but more artfully: "Which Real Estate stage are we in today?" I don't know when she wrote her piece but she gave an anecdotal account of where she perceived her local market at that time. She perceived her market was still in the Despondency and Depression stages.

I have been writing for some time now that most of the inexpensive properties have been put under contract. Those properties include numerous short sale houses, condos, and town homes in the Mid Town, New Town, and numerous Stock Island communities. Bank owned properties all over the Key West area seem to go under contract soon after they being listed if they are priced correctly and marketed properly. Bank owned properties that do not sell right away may have some underlying problem that continues to make the individual property difficult to sell. Finally, some upper-end properties are selling very quickly because of their inherent perceived value (location, design, construction, amenities, price, etc.) as compared to other similar properties.

I have noticed a resurgence of an almost buying frenzy starting to occur on some properties. Places that sold within the past few years for high prices that get listed as a short sale or bank owned property often go under contract within days if not hours of being listed. Many Realtors have clients waiting for that too-good-to-be-true buying opportunity.

Something else has just started to happen: price increases. There have not been enough increases to call it a trend, but there have been enough to note that not all properties are being marked "down".

Reuben Concepcion of Keys Financial sent out his take on the market a couple days ago. He said:

"The Federal Reserve left the key Fed Funds rate unchanged today. However, that’s not the important part of the story.

The Fed has been purchasing hundreds of billions in long term treasuries and mortgage backed securities this year as part of an effort to drive down long term interest rates – i.e. MORGAGES, and therefore help the real estate market recover.

They announced this program will come to an end by early October and will not be extended.

Rates have been artificially subsidized to the lows we’ve seen this year largely as a result of this government buying. Therefore, expect upward pressure on long term mortgage rates in the near future.

Additionally, the “positive” (not as terrible) economic news coming out (lower unemployment claims, etc) is helping the stock market rally, which also creates upward pressure on mortgage rates by moving money back into stocks and out of bonds."

I have been fortunate to have some "all cash" deals and some traditionally financed deals during the past year. I would love to see the low cost money continue, but I realize it probably will not.

If you read my blog regularly you have seen that I have mentioned many really nice properties that once sold at high prices that are now offered at significantly lower price points. I usually refer to these types of properties as buying opportunities. Sometimes I even call them bargains (as compared to previous prices or as compared to similarly priced properties that I subjectively view as inferior or too highly priced). Some readers and commentators may feel the Key West market will continue to fall. I don't know the answer. Nobody does. I monitor the County Clerks records and I know that more foreclosures are on the horizon.

What I do know is that the Island of Key West has a finite amount of permanent housing. Real buyers are now purchasing as opposed to sitting in the waiting room. If you look again at the above chart I think the Key West real estate market is somewhere between Hope and Optimism. There are enough indicators that we are no longer in the Despondency and Depression stages.

If you believe we are on the road to recovery and want to buy a place in Key West, please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in Key West, Florida. CLICK HERE to search the Key West Association of Realtors mls database. Get your place in Paradise.

631 Southard Street - Old Town - Key West

Here is another real deal. The problem is you need to be kind of rich to afford it. But there are still lots of rich folks in America and some of them are looking for homes in Key West. If you are among that lucky bunch, you might want to consider 631 Southard Street that was just listed for sale at $1,995,000 or $785 per sq. ft. The listing Realtor describes the property this way:

"Elegant, Sophisticated, and Luxurious Historic Home on Solares Hill in the Heart of Old Town Key West. Fully renovated and restored with an eye for perfection and quality. Beautiful kitchen with Jenn-air and Fisher & Paykel stainless steel appliances. High ceilings, hardwood floors, bedrooms with bath ensuite,laundry room, and open floor plan with finest details throughout. Huge tropical lot with lush vegetation, heated pool, spa and outdoor living room with privacy galore. Newly renovated guest cottage CLICK HERE offers glass tile shower room, open floor plan for easy tropical living. Off-street parking, full house generator, wrap-around porches and custom made Ipe' shutters. A Luxurious Residence in the Heart of Historic Old Town Key West."

This house is such a charm to show. The downstairs combined living-dining areas work so well for the relaxed Key West lifestyle. The French doors look out onto the gardens and pool. And unlike a lot of older Key West homes, the view is bright and cheerful on all sides. That corner location provides nice morning light on the east and the extra large yard provides sun for the pool and gardens. CLICK HERE for more details and some great photos of this special property.

631 Southard Street is located at the corner of Southard and Elizabeth Streets--just two blocks from Duval but only one block from 5 Brothers CLICK HERE to the east or Sarabeth's CLICK HERE and Nancy's Secret Garden that is hidden at the rear of Free School Lane CLICK HERE. Fausto's Food Palace CLICK HERE is a two block walk and the Key West Cinema CLICK HERE and The Red Barn Theater CLICK HERE are about three minutes away by foot. (The Waterfront Playhouse CLICK HERE to see a "chick play" is about a ten minute walk because you have to walk through hordes of tourists!) The Historic Key West Seaport CLICK HERE is five minutes by foot. So you see you cannot beat the location. The house is near everything important.

I represented some people that tried to buy this house back in 2004. My buyers offered $2.8 million cash and the then seller turned them down. The then seller eventually sold to the present owners for a lower price. Such is the fate of market timing. Greedy bastards sometimes lose even in an up market.

The present owner has put a lot of time and money improving this already superb home. If you are looking for a second home in Key West and want the lifestyle, the excellent location, and the amenities 631 Southard Street offers, please call me, Gary Thomas, 305-766-2642 to arrange a showing. I am a full time Realtor at Preferred Properties Coastal Realty, Inc., an affiliate of Christie's Great Estates.

Dramatic Price Reduction - Casa Marina - Incredible Value

The asking price on 906 Johnson Street in Casa Marina area is now $1,769,000.

CLICK HERE to to read more about 906 Johnson Street. The "bank" has set this price. This is not wishful thinking. This is the opportunity for a buyer with big bucks to score a grand property at an incredible price.

CLICK HERE to do a price comparison for other similarly priced homes. I have written about some of these homes before. But at the new price of $476 per sq ft, the price of 906 Johnson Street is just too hard to beat.

Please call me, Gary Thomas, 305-766-2642 to schedule a showing. Preferred Properties Coastal Realty, Inc. is the listing broker on this wonderful home.

Key West Real Estate Investment Properties

Some fool killed the Golden Goose. And most of the famed Money Trees in Key West got wiped out. But three investment properties in Key West just got a lot more affordable yesterday. I wanted to share those potential buying opportunities with you before someone else beats me to the punch.

I don't have any insider information on these properties other than the units are part of an estate that is liquidating some of the remaining assets. These properties are not short sales. Each property is located in the Old Town area and currently provide "workforce" housing.

919-921 Southard Street has three legal units and sits on a very large (5075 sq ft) lot on a great Old Town block. The listing Realtor suggest the property "could easily be converted back to single family for the creation of a wonderful estate. In heart of Old Town and midst of multi-million dollar properties! House sits on one side of Double lot which provides room for expansion. In Bank Trust. Sold AS IS; Current incomes are month to month as follows: 1. 2/1 Rear down $1100 2. 1/1 down $900, 3. 1/1 up $850. Owner pays water sewer, and garbage." The location is killer! I'd keep the facade and tear down everything behind it. I showed this property a year ago. This place could be a spectacular renovations and expansion. CLICK HERE for more info. This property is now offered at $650,000.

Locals and some returning visitors may know where 1130 Elgin Lane is located, but for everyone else it sits on a small one way lane Just west of White Street between Eaton Street to the north, Fleming Street to the south. If you know where Blossom's Market is on White Street, 1130 Elgin Lane is not far away. CLICK HERE for a pic of Elgin Lane. The listing Realtor says this: "Located on Cute little lane within walking distance of old town and Amenities! 4 units and an extra 832 sq ft. building for storage. Tenants pay all utilities except electric for storage. Month to month rentals: A. 1/1 $850, B. 1/1 $850, C. 2/1 $1200, D. 2/1 $1200 E. Storage. Upstairs 2 bedroom units are two story with bedrooms on 2nd level of units. Charming appointment. Sale subject to Bank Approval and sold AS IS. This is not a short sale or forclosure. Priced right!" 1130 Elgin Lane is now offered at $450,000 or $146 per sq ft. CLICK HERE for more details and photos.

915 Pohlaski Lane is across the lane from the Coffee Mill Dance & Yoga Studio just off Truman near White Street and directly behind the Chevron Gas Station. 915 Pohlaski Lane is the least expensive of the three properties. It is offered at just $399,000 or only $121 per sq ft. The listing Realtor described Pohlaski this way: "Established 3 Unit 2 story building with extra fenced side yard on small Lane just off Truman. All Tenants month to month. Great Location for local old town residents. Just a bike ride to Duval. Sale subject to Bank approval. Rents are month to month as follows: Unit 1: 1/1 down $765 tenant pays all util, Unit 2: 2/1 down $1200 owner pays sew/garb, Unit 3: 2/1 up $1300 owner pays sew/garb. Unit 2 is a nice size 2 bedroom, fairly modernized, Unit 3 exra large with the 2 bedrooms being a combination of 2 rooms each and 2 loft areas to either side of living area, one currenty used as a bedroom. Units 2 & 3 both have washer/dryers. All come with refrigerator and stove as is. Some tlc needed. Good income producer possibilities!" CLICK HERE for more details and photos.

If you are looking to purchase an existing income producing property in the Old Town area of Key West, please contact me, Gary Thomas, 305-766-2642 or by e-mail at kw1101v@aol.com, to schedule a showing on any of these properties. Since the units are tenant occupied, we must scheduled showings 24 hours in advance. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in Key West Florida.

Love Muscle? Buy this House in Key West!

Love Muscle? Buy the appropriately named "Love Muscle House" located at 819 Whitehead Street in Key West, Florida. If you are expecting kink, forget it. This place does rock, however.

The listing Realtor describes the property this way:

"Tropical little gem in Old Town. 3 bedrooms, 2 full baths. Large deck and room for a pool. Mexican tile and bamboo flooring throughout. Fully renovated, new bathrooms and kitchen. This festive house comes fully furnished. Priced right."

The Love Muscle House is offered at $475,000 or $447 per sq ft. This place could be the right size for someone looking for a Key West getaway. It measures 1062 sq gt including the second floor (where the master bedroom and master bath are located) and includes the guest cottage at the rear. The lot measures 2874 sq ft and it is big enough for a real pool, not just a dip pool.

I showed this colorful house last week and somehow managed to lose the photos I took. There is a cute smaller bedroom at the front of the house. A spiral staircase leads to second floor which has a really good sized master suite. The views up there are great. The living room and kitchen share the main part of the house and that space totally rocks. There is a very large bath at the rear of the house. The cottage at the back is oh so private and very sharp. CLICK HERE to get more details on this house and view photos of the interior and exterior.

The Love Muscle House is located 1/2 block north of the Hemingway House and one block west of Duval Street. There is lots of foot traffic, vehicular traffic, trolley cars, and bicyclists during the daytime. But the street reverts to typically quiet Key West residential after sunset.

If you'd like to checkout The Love Muscle House please call me, Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in Key West, Florida.

Affordable & Adorable - Key West Short Sale

The adorable cottage at 1109 Margaret Street in the south area of Old Town Key West just became an affordable short sale buying opportunity. This is how the listing Realtor describes this special Key West Cottge:
"New in 2004. Sweet, easy care, low maintenance cottage in Old Town, perfectly situated in quiet neighborhood, just a half block from El Siboney and only 5 blocks from Duval. Inside:vaulted ceiling, granite counters, polished concrete floors with one bedroom and full bath down, ladder to stand up loft bedroom or den plus private outdoor shower. Very private back yard and charming 1910 block perimeter walls create exterior interest. CBS building, hip metal roof and off street parking for one car in an X-500 zone, so mitigation credits for windstorm and no flood insurance required. Ideal pied--terre as an in town 2nd home, or perfect little gem of a starter home."

Somebody is going to snap this up in a flash. Here is why: the place has nice street presence and yet it is totally private. Off street parking and the gated entrance set off1109 Margaret Street from most Key West houses and really distinguishes itself from places in the same price range. The listing Realtor says the cottage has 763 sq ft of living space (on par with a large Shipyard unit for comparison purposes) and that it sits on a good sized lot 30' x 70' or 2100 sq ft total.

This place is as cute as it can be. The living area has a huge vaulted ceiling and the room opens onto the rear of the property. There is more than adequate room for a good sized pool. The rear yard provides total privacy so swim alfresco. CLICK HERE to view more detailed listing information and see the photos of the interior of this really cute place. I took the exterior photos this morning. The sky was overcast and rain is on the way. 1109 Margaret Street's facade tricks the eye into believing the property is more old world than new Key West. CLICK HERE to see a photo of the equally charming but larger property next door to the north.

1109 Margaret Street is offered at the price of $399,000 or $523 per sq ft for a real house in Old Town Key West that is 5 years old.. The listing Realtor advises that the current lender "is set up to accept an offer quickly, verified by their independent appraiser". The location is convenient to so many of the reasons buyers prefer Old Town for a second home. This cottage may appeal to that single person of couple who want a place to escape that is priced within reason and that does not require any additional "fixing".

If you want to see 1109 Margaret Street before it is history, please call me, Gary Thomas, 305-766-2642 or contact me by e-mail at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in sunny Key West, Florida. If you snooze you will lose on this place.

Reversal of Fortunes - Key West Real Estate

People are funny. They always want what they can't have. Little kids want to grow up; adults wish they were younger. They buy giant SUVs that cost moola money; they trade in clunkers for cash which could be as rash. They admire the body of Adonis; they continue to eat at Abbondanza. They see a "wet paint - don't touch!" sign and tap the spot on the dot. They dream of owning a place in Key West; they scorn a deal that could seal their fate.

Between 2004 and 2006 when real estate developers were going hog wild building new properties from one end of Key West to the other, this town of ours was hoping. Since Key West has a limited supply of the kind of places most second home buyers theoretically want, developers did what they do: they developed--the best! Because of its limited land size, lot density requirements, height restrictions, HARC guidelines, and State of Florida imposed limited new residential construction permits, the developers constructed numerous high end properties. While each was different, they were all pretty much the same in that they were designed to appeal to our inner snobbery. Location, amenities, high price tags were the common bond of these Key West properties.

Developers envisioned big projects with big profits. Some were built. But not all of the projects broke ground. Other projects were stymied by lawsuits by neighbors protesting developments they did not want. Harbor House Condominiums is a multi-million dollar example. The delays cost the developer valuable time and racked up huge legal fees. When construction finally started, the market had already started to fizzle. There is a story in today's Key West Citizen CLICK HERE about a code violation of a construction fence surrounding the the now "abandoned" project (see photo above taken this morning). Another example was the proposed condominiums at Atlantic Shores. Delays there caused the project to instead became more hotel rooms at Southernmost on the Beach Resort. There was major erection dysfunction.

But some of the projects did get built. Parties were given to introduce the people of Key West to the new developments. I even wrote about a few of the parties I attended when I started this blog. I knew at the time that there were too many high-end projects and not enough buyers. Most of the units built were 1500 square feet or larger. Most had private pools, designer kitchens, three bedrooms and bathrooms, and enough amenities to lure buyers into spending two million dollars for a vacation home in Key West. Most of the new construction did not get purchased. Some of the few that were purchased have since become or will become short sale or bank foreclosures.

The fact that most of the units that were built were not purchased should not surprise us. Even if there was a real demand for so many elegant units, I think it was foreseeable that there would not be enough ready, willing or able buyers to pay the outrageous prices. Many lot of the units that were built during this time period are now offered at much lower asking prices. Some owner/developers or lenders have turned unsold units into vacation rentals and await a real estate market rebound.

The thing that strikes me funny is that buyers who lusted after units priced at $2,000,000 now scoff at the idea of paying perhaps half the price. That same buyer's "logic" applies equally to single family homes, especially the well located and tricked out houses in Old Town. The properties they coveted are now marginalized.

You may have seen the story about the family that is the sole tenant of a 32 story condominium in Ft. Myers CLICK HERE That family was on the evening news yesterday. As I watched the report I looked at the building and thought to myself that the building and dozens, maybe hundreds, of similar buildings are located across Florida and that they all face a common future: it will be years and years before all of those units get filled. But Key West has never been and never will be like the rest of Florida. There is a limited supply of houses and condos. My advice to would-be buyers is to buy now before the market correction is complete. Because prices will rise and property in Key West will cost more. I have already heard of bidding wars going on for lower priced units at some condominium and townhome developments. Some developers are now exercising their right of first refusal.

CLICK HERE to search the Key West Association of Realtors mls database. If you see something you like, please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. in beautiful Key West, Florida.

906 Johnson Street - Casa Marina Estate Property - Now a Short Sale

One of my very favorite homes in Key West just became a short sale. Some buyer is going to own one of the very best houses in all of Key West for a fraction of what it is worth. They don't make houses like this anymore. And you could not duplicate this house if you were to try to build a new one. The cost would be prohibitive.

906 Johnson Street is a 3720 sq ft estate type property situated on a 10,750 sq ft lot located one block from the Atlantic Ocean. You can see the Atlantic Ocean from the master bedroom and master bath on the second floor. The main house has a formal living room with fireplace and an informal family room overlooking the rear terrace. The west wing provides living quarters for staff. There is a separate dining area that overlooks the large pool and outdoor kitchen on the east side of the property. The master bedrooms and master bath have ocean views. These two rooms are just elegant without being prissy. There are two additional bedrooms on this floor-one even has a terrace overlooking the pool below. There is a fully contained guest cottage with living room, bedroom, small kitchen, and bath. Off to the far west you will find another casita or writer's cottage with its own bath.

CLICK HERE for more detailed information and to view photos of this property.

Entry to 906 Johnson Street is made through a formal gated entrance. Brick pavers encircle the entire property as do gardens filled with towering palms and assorted tropical plants. This place is a gardener's paradise.

Preferred Properties is the listing broker on 906 Johnson Street which is now listed at the short sale offering price of $1,769,000 or $476 per square foot. This is truly a great buying opportunity for a discerning buyer. Please call me, Gary Thomas, 305-766-2642 to schedule a showing.

810 Terry Lane - Short Sale - Key West

The guess work is over. The bank has disclosed the short sale price it will accept on 810 Terry Lane is $610,000 or $323 per sq ft.

Our office had the listing on this house a year ago when it was offered at $1,249,000. It did not sell. It still has not sold. A different office now lists the property. CLICK HERE to see the current mls listing info. But read below for a few more details that the current agent has omitted. (Not pointing fingers!)

Gorgeous, brand new home located one block from the lighthouse in the heart of Old Town. This home offers 2000 sq. ft. of luxury living loaded with top of the line finishes. Three large bedrooms, three fabulous baths, a gourmet kitchen featuring a Thermadore 6-burner, stainless gas range top with hood and matching appliances. The floors are oak, the ceilings tall and the home drenched with natural light from the large windows and French doors. The master suite is spacious and boasts huge walk-in closets, private balcony, bathrooms with double vanity,granite counter top, slate tile floors and good storage. Click on each photo to see room or space: LIVINGROOM, KITCHEN, BEDROOM-1, BEDROOM-2, BATHROOM, POOL, POOL VIEW.

810 Terry Lane is located two blocks west of Duval Street and just south of Petronia Street. I took a couple of exterior photos this morning so you could see the neighboring houses. The house next door to the south with the Avanti in the driveway CLICK HERE is a duplicate of 810 Terry Lane. There is a real cute cottage across Terry Lane to the east CLICK HERE. The Key West lighthouse is one block to the south CLICK HERE - but not my photo.

This house in my opinion is a lot of house for not a lot of money. I remember a year ago I had some buyers that wanted to buy a bank owned property in the same neighborhood (only a few blocks south). That house had no parking; it had been remodeled and not remodeled very well. Let's say it still had issues. 810 Terry Lane is new in 2007 construction. Now that we know the price the bank will accept, the guess work is gone and all you need to do is write the offer. If you would like to see 810 Terry Lane, please contact me, Gary Thomas, 305-766-2642.

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Southard Street Selections - Old Town - Key West Properties

Just listed (but not by me) 530 William Street in the heart of Old Town Key West. This house was purchased in 2008 after just 21 days on the market. Perhaps the great location and beautiful architecture had something to do with the property selling so quickly.

This is how the listing Realtor describes 530 William Street:

"Elegant Historic Home located in the most desirable area of Old Town. Large spacious rooms in main house. Downstairs has Formal living dining, eat-in kitchen, 2 bedrooms 1 bath. Upstairs also full kitchen 2 bedrooms and 1 bath. Two meters with seperate heating and cooling units. Easily converted back to a grand single family home. Also, included 725 and 727 Southard Street cottage. Each is Living room, 1 bedroom 1 bath and kitchen. total of 4 units. Grand home in great condition. Well maintained. Must see to appreciate."

530 William and the adjacent two cottages CLICK HERE occupy the northwest corner of William and Southard Streets. The listing Realtor states the properties have 3276 sq ft of living space and sit on a 4455 sq ft lot. There are six bedrooms and four bathrooms. The asking price is $1,645,000 or $502 per sq ft. There is no pool nor room for a pool. And there is no off street parking. CLICK HERE for more information on this property and to view more listing agent provided photos.

The big old Great Dame across the street at 730 Southard Street CLICK HERE is still on the market. It is now priced at $1,490,000 or $525 per sq ft. It is a fixer for sure. The house size and lot size provide ample opportunity for creating a great living space for the rest of this new century. This is one of the great Key West houses and it is truly a buying opportunity.

The cute as a button cottage at 723 Southard Street CLICK HERE is also still on the market. It has been reduced to $749,000 or $681 per sq ft. This two bed twp bath cottage is just too sweet and should meet the needs of a buyer who wants a Key West retreat complete with pool and charm. No "fixing" required here.

And the lovely recently renovated two bed two bath cottage at 712 Southard Street CLICK HERE has been reduced to $829,000 or $808 per sq ft. The large pool and rear living area CLICK HERE is just awe inspiring.

Each of the houses in this block offer something a bit different and may appeal to different buyers. A buyer wanting income to help pay for the cost of ownership may be attracted to the 530 William Street assemblage. A buyer that wants to make a mark on Key West surely would be interested in 730 Southard Street. Someone wanting a cozy Key West cottage with everything done just might fall in major love with 723 Southard Street. And that buyer who wants a large pool and total privacy could just as easily fall madly, crazily in love with 712 Southard Street.

Tomorrow I am going to write about the real estate sale for July and give my opinion, such as it is, about what has happened recently and where I think the market may be headed. If you are truly looking for a deal in Key West, consider the four properties mentioned here today. They share a great common location that is convenient to everything that Old Town Key West offers.

Please give me, Gary Thomas, 305-766-2642 a phone call, or e-mail me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties Coastal Realty, Inc. We are an affiliate of Christie's Great Estates.