Odds Are You Lose. Why Waiting for the Right Time Fails

Today's blog entry is for you disbelievers and prophets of doom and gloom who believe the asking prices will go down and not up. I will concede that the asking price on a lot of our housing stock has been priced too high and that a lot of homes have not sold because common sense tells us a particular place is just not worth what some sell wants it to be worth. In the past couple of months there have been more daily price reductions than closed transactions posted to our local MLS.

There have been 114 residential sales in Key West which closed since January 1, 2018. I would like to share a few of the more notable which I previously wrote about when listed.

1126 Stump Lane initially was offered last summer at $549,000 and recently closed at $520,000 or $920 per sq ft. This was a one bedroom 570 sq ft house on a small lane. It went under contract relatively early after it was listed but closed several months later because of minor title defect which was cleared. 

923 Angela Street is a very pretty little house which received a coveted ceramic star for preservation and renovation. It was initially listed at $1,099,000 and sold at $965,000 or $969 per sq ft for this 996 sq ft two bedroom, two bath home with pool but no off street parking. The lack of parking was probably the primary reason this house stayed on the market so long.

1025 Eaton Street is a three bedroom home with pool and covered off street parking in the rear with a total of 1340 sq ft of living space. This house was initially listed at $1,150,000 and recently sold at $1,065,000 or $795 per sq ft. Many potential buyers fail to look at houses on Eaton and White Streets assuming the interiors may be noisy. This house was not noisy. The interior was in great condition and the back yard and pool were amazing.

1011 Windsor Lane is located opposite St Mary's Basilica. It is a very large and somewhat dated grand conch house plus rear cottage that sit on a very large Old Town lot. It was initially listed at $1,299,000 and later sold at $989,000 or $572 per sq ft.  A new owner will probably spend somewhere over $300,000 to renovate this home and cottage and add a pool. When renovated, I think this property will be worth around $2 million.

508 Grinnell Street is a beautifully renovated home and rear cottage with pool and parking located on one of the best blocks in Old Town. The 2049 sq ft house was initially listed at $2,150,000 and sold at $1,850,000 or $903 per sq ft.

1233 South Street is located in that area I have been calling Casa Marina East. The totally rebuilt 1750 sq ft  3 bedroom 3. 5 bath home with pool and off street parking sits on a large corner lot of in an area rivaling homes in the more defined Casa Marina district. This home was listed at $1.795,000 and sold at $1,786,00 or $1,021,000 per sq ft.

I must admit the sales prices on all of the homes I selected seem very high especially when viewed on a price per square foot basis. During the last three months the average Key West house sold for $820,008 or $563 per sq ft. The "average house" includes small condominiums, mid-century fixers, and a $5 million plus estate on Sunset Key. What I see from these sales is a strong sales price for quality homes in highly desirable locations in Key West. 

I predict we will see buyers return in May and June to swoop down and pick from the overpriced and unsold homes.  This is the same phenomena that has occurred during the past two years. The problem is that most homes located in Old Town and the Casa Marina areas are one of a kind and are not replaceable. Potential buyers risk a lot by waiting for the right moment to make an offer.