The Long Hot Summer in Key West

The spring and summer of 2020 have alternatively sped by and dragged on, depending on your mindset or the day of the week when my mind functioned normally. The tedium of the lock down and being forced to stay at home was moderated by the fact I live in paradise. Friends and fellow agents have shared moments of sadness, grief, woe, and dread of the future. We discussed loss of business and wondered what the future would bring - that is really an understatement! There was colossal doubt.

The reality of the pandemic set in. Then George Floyd was killed instigating the Black Lives Matter movement. Twitter exploded with videos of America under siege by police. America was experiencing chaos similar to what happened in 1968 - except this time no politicians have been assassinated.

The stock market fell. It always responds to bad new with a drop. Some investors lose their shirts and others buy low only to make huge profits on the losses of others. The stock market is back up. But the real economy, that one where average people work (or not work), is still down. Prices on everything in the grocery store are up - bread fifty cents a loaf. Bleach used to be $2.99. Yesterday it was $5.49 for store brand. I wonder how people with small children who are working can afford to pay for food, rent or mortgage and utilities.

I have had two former customers contact me to express interest in buying into the downturn in Key West real estate. It has not happened -yet. In fact, the Key West market made an incredible uptick right after people could return here. There are currently 48 single family homes under contract with an average list price of $1,068,265.

A total of 131 single family homes have closed since March 1, 2020 for an average sold price of $1,023,176. Eight of those sales were for homes that sold for an average sold price of $2,907,500. I have been a doubter of the over - two million dollar market for several years. It is real. It does exist and it has flourished in the pandemic.

But consider this. The real people that I talked about three paragraphs above are not being foreclosed upon or being evicted from their apartments or homes. What is going to happen when that federally mandated protection goes away.

And here is another thought. Sears has closed. Pier 1 is in bankruptcy and the Key West store is in liquidation. It will soon shut. The Escape Room next to Winn Dixie is gone as are many small locally owned businesses. Perhaps up to 30% of the shops, bars, and businesses on Duval are closed. When to government bailout runs out, what's going to happen? There is going to be a reckoning. On the bright side there is new construction and renovation occurring on Duval Street (see below) and throughout Key West.

Two weeks ago town was full of tourists. Last week I drove up Simonton Street toward the ocean. There were no cars past Truman Avenue. I turned east on South Street. No cars. It reminded me of how deserted South Street was after Hurricane Irma. It was scary. We have a lot of very scary things ahead of us.

Looking for a Realtor in Key West. Consider calling me, Gary Thomas, 305-766-2642. Preferred Properties Key West.