2016 That Was the Year That Was in Key West Real Estate

Each year I like to look back to see what was sold and select what I think were the outstanding sales for our little island paradise. Most of my customers are buyers.  Most of my buyers are folks from up north in America who are seeking either a getaway place or a potential retirement home. As a result I have been inside a lot of the houses that were sold in the past year and have a pretty good sense of what constitutes a good price, a good location, or just a really good all around value.

I wrote about 1435 Flagler Avenue a few months back. This home was typical of many places in Key West that had been occupied by locals for multiple years. The home needed updated and had some issues but overall it was a solid home in quality area.  It had once beautiful yard and pool that will be brought back.  I liked this place a lot. 

9 Gerome Avenue sold for $465,000. It is located on a walking lane near the Chevron gas station on Truman Avenue. It was a mix of an historic house that had been updated years ago but was also a place that would benefit from a new update. If this house had been located on an easier location to get to and if it had parking, it would have sold closer to a million dollars. And for the buyer who wants to be away from everything, the added value just may be the isolation.

I showed 1116 Varela Street on many occasions and had even more phone and email conversations with potential buyers. While the house pictured above may not look like much, the value with this property was the enormous lot not visible from the street nor the ability to add a pool and re-build an existing out building at the rear. This place sold for $475,000.

1518 Rose Street is a mid-century three bedroom, two bath home with a pool located in the mid-town area of Key West. It needed some updating but it was a solidly built home with a large pool and nice private yard. Buyers looking for homes now will probably have to pay more money to get something not as large or as nice and probably not get a pool.

1717 South Street presented a big challenge to the bank that owned this very large and once magnificent house. The 1900 sq ft home also had a guest cottage, pool, and sat on an 8531 sq ft lot. The place sat vacant and not maintained for several years. There was both water intrusion and termite damage that scared a lot of potential buyers. The people I showed the house to were overwhelmed by the amount of work that was required to fix up the place or the prospect of tearing down and building a new house on a glorious lot. I would have gone of the tear down and rebuild route myself. This place sold at $460,000.  Big Bargain despite the cost to renovate or rebuild. The lot by itself was worth more than the sales price.

1107 Southard Street is located amid some of the nicest and most expensive homes in Old Town. The place as a family homestead for generations. The place will require extensive repairs and renovation but will be worth perhaps 150% more than the price paid to purchase this fixer - $492,000.

237 Golf Club Drive was my listing and sold in just two weeks on the market for $744,000. The house had been thoroughly updated and offered more interior and protected outdoor living space than any other house when listed and sat a much larger lot than any other home in the Sanctuary.  I have sold dozens of homes at the Key West Golf Club and consider the community to be one of the very best values in Key West.

The picture perfect cottage at 628 Frances Street sold at a huge discount to asking price - just $675,000. I wrote about the place in my blog a couple of times and showed it several.times. When the sold price got published, potential buyers told me they would have paid that amount. They just did not expect the seller would be willing to sell that low. This is a lesson a lot of people learn in Key West. Sellers and their agents should list houses at realistic asking prices and buyers should not be afraid to make offers at price points they believe more reflective or real market value irrespective of the asking price. 

The mid-century modern at 1611 Seminary Street received a clever renovation that totally transformed the old house into functional 21st century home with open living spaces. This home sold for $865,000. 

25 Sea Lore Lane was another bank owned property that lingered on the market for quite awhile. The 3,023 sq ft house sat on a 14,688 sq ft lot with great open water views. The house was built in 1994 but seemed a bit dated as the kitchen and bathrooms were typical of construction materials used then which is three decades ago.  This place sold for just $940,000. This was a bargain!

I have sold a couple of homes in the Key West Writer's Compound over the years including the former home of John Hersey. This year a two story cottage at 715 Windsor Lane Rear came onto the market and went under contract within days of being listed. It sold for $900,000 and was worth more. It was adorable. None of these homes have off street parking which pose a challenge for a lot of potential buyers who fear separation anxiety over not being able so know there car is outside the window like a puppy. And some people don't like the idea of sharing a pool. This is about the best walking location and one of the quietest places in Old Town. 

915 Washington Street is an adorable little cottage located on one of the best blocks in the Casa Marina Area. It sold at $1,095,000 in one day on the market. I wrote about it in my blog and sent emails to various potential buyers and talked to a couple of buyers on the phone. I understand when people located a thousand miles away may reticent about committing to spending $500,000 or a million dollars for a house on a sight un-seen basis.  However, I have sold houses for more than that where the buyers did not see the house until inspection. This is one house where a buyer could tell from the photos and good old GOOGLE MAPS what a great location this house enjoyed.

527 Margaret Street appeared in my blog a couple of times over the past few years including when the original beat down house still existed.  The old house was taken down to the front frame and totally rebuilt and then stylishly outfitted by a noted interior decorator. The new "old" house sold in a flash for $1,460,000.

1104 South Street also appeared in my blog a couple of times. This is another magical Casa Marina Area home. Local architect Matthew Stratton transformed the prior master bedroom into the new living room and re-purposed a legal apartment over the double garage into the new master quite. This stunning home sold for $1,800,000.

744 Windsor Lane was purchased by my buyer for $3,675,000. This was the highest priced home sold in Old Town this year. This is the fifth home this buyer has purchased from me. As of today there are 34 homes for sale in Key West offered at $1,800,000 or higher. And there are many priced under the $1.8 price point. I am a buyers agent and I would love to work assist anyone reading my blog in finding their perfect place in Paradise.

Key West Real Estate Sales Report - First Half of 2015

I thought it would be interesting to look at the real estate sales for Key West for the first six months of 2015. I used the Key West mls database for the geographic areas of Key West and Stock Island but did not include any sales east of Stock Island. This geographic area most potential buyers consider to be "Key West" even though our mls database reaches property sales which extend ten miles east of Mile Marker 0. 

620 Eaton Street, Key West

There were a total of 231 single family home sales in Key West between January 1, 2015 and July 1. The highest priced sale was 620 Eaton Street (above) which sold at $4,495,000. The least expensive house sold at $225,500. The median priced home sold at $635,000. The listed properties sold on average at 95.71% of the list price. This figure is important for potential new buyers to understand. It is not a "rule" that houses must sell in this range, but this range is very suggestive of where typical deals are actually struck. A couple of years ago the spread was at 92%. The reduced amount of inventory and the higher sales prices have inched the margin upward. The prices for the broader market include home sales in the Mid town and New town areas of Key West which have been sluggish because of rising windstorm and flood insurance rates.

There were several sales which I thought were very interesting and worth mentioning.  I wrote about some of these properties in my blog.  1441 Thompson Street (below) was a bank owned property which I wrote about. I got more phone calls and emails from potential buyers on this than any other property that I wrote about during the past six months. The asking price was just $360,900.  It sold for $380,100. The new owners have already begun cleaning out the tropical over-growth. I can't wait to see what they do to this Bargain!

The house at 1105 Washington Street (not pictured) in the Casa Marina Area of Key West got snapped up on day one it was listed. The new owner paid just $1,000 over asking price of $499,000. It's been spiffed up a bit and back on the market at $795,000.

 I wrote about the house at 1711 Atlantic Boulevard three times. I showed the home several times to many different potential buyers who had a variety of ideas as how they might use or develop this 1950's home. The house sits on an elevated lot across the street from a nature preserve with mangrove that abuts the Atlantic Ocean. The property was originally listed at $680,000. The price was reduced to $590,000. It sold for just $540,000. I think this is a great deal for the buyer. The lot is worth the price and it will continue to go up in value as market prices increase in Key West. It is the location that trumps all. The existing house is elevated five feet above the street. Key West recently approved new heights for homes which may give the owner of this particular property the ability to build a new house which could have water views that look out over the mangroves in the foreground.

I showed 530 Grinnell Street ( above) in Old Town several times. This very pretty and very small home was superbly renovated and decorated.  The original asking price was $975,000 plus $50,000 for the furniture. It sold fully furnished at $750,000 or $937.50 per sq ft.  I had two very serious buyers who loved the house but refused to consider making an offer even after the price was reduced to $799,000. My buyers rejected the idea that any house that small, no matter how cute, could be worth nearly a $1,000 per sq ft. I told both couples I thought it should sell at $750,000 furnished. The seller was never going to move that custom furniture to some other place. That made no sense whatsoever. I was right on price and strategy.  Both couples I represented lost a terrific property in my opinion. I mention this house because buyers seem to get the jitters when they think about spending $1,000 per sq ft for a house in Key West. I have a news flash for my Dear Readers. Prices are going to continue to go up over the years. Prices that are being paid for quality homes now will seem like bargains in five to ten years.

527 Margaret Street was a major rebuild of what remained of the front wall frame of the old home. The city allowed the owner to take down the original house to the front wall studs and then build an all new structure to the rear. The result was an amazing new two bedroom home in a great Old Town location. This property sold for just $1,125,000 or $803 per sq ft for this 1400 sq ft 2/2 1/2 bath home with pool.  The interiors in this home are incredible.

813 Waddell Avenue is located in the Casa Marina Area near the Atlantic Ocean. Although there was a home on the 10,500 sq ft lot, the property was sold for the value of the land which had two ROGO units. That means a new owner could separate the large lot into two smaller lots and build tow houses in this upscale neighborhood. The property sold for $1,175,000 or $608.70 for the land value. Most of the homes in the Old Town area and many in the Casa Marina Area come within the purview of Key West's Architectural Review Commission.  Most of the homes cannot be taken down. This is a property that may be razed or renovated. It was the lot size and options to do build two homes that made this property so valuable. Readers need to appreciate the lack of buildable lots in the desirable areas of Key West. Buildable lots give a new owner opportunities that most property owners can not get.

1111 Packer Street (above) is located in the Old Town area South of Truman. This home had a successful multi-year vacation rental history. It sold at full asking price of $1,175,000 or $818.25 per sq ft. This home was thoughtfully designed and professionally maintained. Many buyers think they can buy an old house, do some fix-up like the see on an HGTV program, decorate the place, and put it on VRBO and have vacationers pay for the place.  Real life is more challenging than that - especially in Key West where construction costs are high and governmental over sight is challenging.  A property like this makes it much more likely that a new owner will continue to earn steady income over the course of home ownership.  I "get" why this sold at full price. It was worth it!

Located in the Heart of Old Town but tucked away and hidden from view is 6 Pinder Lane, an enchanting home and secret garden that once belonged to author Nancy Friday. The home seems to rise from the garden with a wrap-around-porch and broad deck that circles the nearby pool and spa. This very private home has three bedrooms and two baths including the treetop master bedroom with private bath. I listed this home at $1,549,000 or $1,072 per sq ft. It sold at the asking price. I thought the home was perfect as is. The new owner is going to renovate the house and redo the garden and pool. The existing house and garden are magical. I am sure the renovated home and garden will be spectacular. There are fewer and fewer totally private locations like this in Old Town. If you are a buyer who wants privacy or a property that is really special in some sort of way, the better thing to do is to buy it. Because someone else will buy it. And you may regret listening to that cheap angel that sits on your shoulder.

1026 Von Phister Street (above) is a 2233 sq ft home located on a beautifully landscaped 9603 sq ft corner lot in the Casa Marina Area of Key West. The new owner paid $1,800,000 for this "fixer" property which will be upgraded.  I can't wait to see what happens. I live across the street and see the property values going up and up when fixer houses are purchased at this price point.

1013 Southard Street is located in one of the very best blocks in Old Town. Several of the most beautiful homes in Old Town are located in this block. This home sold at 100% of asking price, $1,900,000, in one day.

The photo above was taken from the bank owned top floor unit at 107 Front Street Units 317 - 318 Harbour Place in Truman Annex. This property was listed for $1,326,000. It sold at $1,920,000. I submitted two offers for two different potential buyers. Neither was the successful buyer. I told both buyers that this is a true one-of-a-kind property. I think the buyer who got this property felt the same about it as I did. Congratulations!

I then did a quick sales price comparison by location.

OLD TOWN.  This is the area most potential new buyers think they would want to live in. There is definitely an advantage of living within an easy walking distance to restaurants, theaters, galleries, gyms, night spots, and places you go every day.  There were 84 single family home sales in Old Town in the first six months of 2015.  The average price per sq ft was $639.41. The median sales price was $953,516. The sales price ratio to list price was 95.20%.  620 Eaton Street was the most expensive home that sold - $4,495,000. A little fixer located across the street from the cemetery was the least expensive home - it sold at $327,500.

1311 Truman Avenue - The Meadows Area

THE MEADOWS. Seven homes in this area traded hands in the past six months. The average price paid per sq ft was $617.11 - slightly less than Old Town. The median sales price was $835,496. The sales price ratio was higher than Old Town - 96.52%.  The biggest sale in this area was 1311 Truman Avenue which sold for $1,900,000. The least expensive home was a cute as can be small cottage style home at 1416 Pine Street that sold at $598,400 in just five days.

901 Washington St, Casa Marina Area

CASA MARINA AREA. There were 12 single family home sales in the Casa Marina Area between January and July. The average price per sq ft was $688.49 - higher than The Meadows and Old Town. The median sales price was $1,409,375. That trumps Old Town by $455,859.  The lots are typically larger and the houses are more eclectic than Old Town. There are still a couple of blocks of houses that were built in the 1960s that remain pretty much the same as they were when built.  Buyers seem to snap up anything in the Casa Area if it is priced under one million dollars. Houses with large lots in good locations that may be razed to build an all new house can be very valuable.

I encourage prospective key West buyers to look at homes and the few available lots for sale with an open mind. I know that prices are high compared to other places. Many destinations are easier to get to and have less expensive lodging and food than Key West. Housing prices may be considerably less. These locations may have as many or maybe even more fun things to do than we have in Key West. Maybe the weather is better in those other places as well.  Maybe you can walk from your home to most of the fun things you do in your daily life. Maybe. But doubtful on all points.

2013 Key West "Selling Season" Results

 The 2013 Key West real estate selling season just closed. The selling season runs from Christmas through April of the following year. Most buyers come to Key West during these months to buy their dream homes. Most sales will have closed by now. I realize that there are still some properties that were put under contract that have not yet closed.  This analysis looks at the total closed transactions between January 1, 2013 and May 1, 2013 in the single family sales and compares the results to the same time period in 2010,  2011, and 2012.  I used the Key West Association of Realtors mls database which shows only transaction where Realtors represented one or both parties. Private sales were not included.  I also counted only real estate sales from Key West to Shark Key as I do not consider the areas outside of Key West to be part of our market. 

There were a total of 117 single family homes that sold in the Key West area in the first four months of 2013. The median sales price on the group was $429 per sq ft. Since most buyers that read my blog are looking for a home in the Old Town, Casa Marina, and Meadows areas, I carved out those locations for separate analysis. That core area had a total of 68 sales with an average sales price of $839,000 or $501 per sq ft.

There were 25 single family homes sales that sold in excess of $1,000,000. The median sales price of that group was $1,691,840. The houses sold for an average of $611 per sq ft.  Six of the 25 sales were located in Key Haven, Shark Key, or Sunset Key.  

In 2012 there were a total of 85 sales for all homes in the Key West area with a median sales price of $600,443 or $376 per sq ft.  There were 37 sales in this core area in the same time period. The median sales price in this select group was $829,991 with a sales price of $537 on a per sq ft basis.

During the same time period in 2011 there were 93 single family home sales that sold at the median price of $672,462 with an average price per sq ft of $370.  The core area of Old Town, Casa Marina, and the Meadows areas had 51 single family homes sales in this period with a median price of $757,873 and sold at $423 per sq ft.

I then went back to 2010 to find that there were 92 single family home sales in the January 1 to May 1 time period. The median price then was $598,313 and the average sales price on a per sq ft basis was $376.32. Next I zeroed in the core areas of Old Town, Casa Marina, and the Meadows where I found there were 41 single family home sales at the median price of $806,878 at an average price per sq ft of $482.

The Old Town, Meadows, and Casa Marina "core areas" continue to dominate Key West real estate sales. These are the areas where most first time buyers look to purchase. These are the areas with which these buyers are most familiar as these are typically the areas where they stay in hotels, guest houses, or vacation rentals.  Many, but not all, potential buyers look to purchasing a home in these areas because they hope to do some vacation rentals to help pay some of the home ownership costs.

 I guess it was sometime in March that I realized the real estate market in Key West was "on fire".  There just was not enough inventory of houses to satisfy the demand for houses. Buyers were buying as if there would be no tomorrow.

There were a couple of interesting sales which you may find interesting. 527 Bahama Drive (located one half block east of Duval between Fleming and Southard Streets) finally sold after being on the market as a short sale for a total of 2563 days. It sold at $225,000.  Drive or walk by sometime so you can see what you can get for $225,000 in Key West. While you are out, walk by 707 Southard Street which is a charming little Key West cottage that sold for $948 per sq ft.  It's little sales like these which mess with my mind when trying to explain that per square foot average sales prices really do not matter in Key West. Our market is made up of such diverse properties and differing locations that statistical models really fail to help us compare prices.  

707 Southard Street - $948 per sq ft

If you are still hoping to buy a little cottage, a big house, or something in between, rest assured that there will be new listings. People are always dying, getting divorced, or moving away for a job or for some other reason. We do have a limited supply of houses and condos, however. We have an imposed limit on new construction and a height and density limit imposed by local government. The fact that we are located on an island means we cannot expand to other undeveloped areas because there are none. The other islands are not "Key West". I see these two factors as positives for buyers. There will be more houses for sale in the future and they will probably cost more in the future. That's a positive if you want your present investment to be worth more in the future.

The uncertainty in Washington continues to put a chill on the overall economy in my opinion. We have had a lot of cheap long term money available that has helped make purchasing a second home in Key West an affordable proposition. Let's hope the FED does not change things for a while. We are doing great as it sits right now.

If you are looking to purchase a place in Key West, please contact me, Gary Thomas, 305-766-2642. I am a buyers agent and a full time Realtor at Preferred Properties Coastal Realty, Inc. Let me help you find your place in Paradise.

 

Bank Owned Homes - Flagler Avenue - Key West

Flagler Avenue is a major street in Key West that brings traffic onto the island and past homes, multi-family properties, and a few strip malls. It abruptly ends at the posh Casa Marina Resort. It is like big feeder streets located across the country. Every town has own. Most people don't want to live on feeder streets like Flagler Avenue. As a result prices are usually lower because of the address itself and not because of any necessary deficiency with the property. Listed below are two bank owned single family homes that might make a good buying opportunity.

2918 Flagler Avenue is a 3 bedroom 1 bath house with 1309 sq ft of living space plus a separate building out back by the pool. The lot is very large - 6360 sq ft. Someone bought this house in June 2006 and paid $800,000. It is now Bank Owned and is offered at $335,000 or $256 per sq ft. CLICK HERE to read what the listing Realtor says about this house and view PHOTOS. I showed this a couple of months ago. It went under contract soon thereafter and just went back on the market. 2918 Flagler is the poster child for bank owned homes. It smelled and it looks terrible. It needs cleaned and painted. It needs some landscaping.

A mile to the east you will find 3814 Flagler Avenue which is also Bank Owned. This 5 bedroom 3 bath home with a beautiful poo, two car garage and 3109 sq. ft of living space on a gigantic 14,175 sq ft lot on the water is offered at $950,000 or $306 per sq ft. CLICK HERE to read more detailed information and view PHOTOS of this house. This is how the listing Realtor describes this property:

"Great opportunity to own a significant waterfront property on a canal in Key West. This 5 bedroom, 3 bathroom home has 3,109 square feet of living space and sits on a oversized 14175 square foot lot with a large pool. A few of the amenities include a two car garage, gorgeous tile floors, new roof, seawall, fireplace and plenty of storage. Bank owned."

CLICK HERE to see an aerial photo of 3814 Flagler Avenue. It is the pink colored property numbered 78160 at the far right side of Vista Del Mar highlighted in yellow. The property provides immediate deep water access. There is a giant pool and off street parking. So what if the roof is shaped a little funny. We all had funny hair in the 1970s when this house was built.

Please call me, Gary Thomas, 305-766-2642 to see either of these Bank Owned properties. I am a full time Realtor at Preferred Properties Coastal Realty Inc. in beautiful Key West, Florida. Let me help you find your place in Paradise.

Million Dollar Babies - Key West

I hosted an open house yesterday 1502 Petronia Street in The Meadows CLICK HERE. The property is currently priced at $975,000. It was originally priced at $1,795,000. It is now bank owned and priced to sell. There was a good turnout of "lookers" and there were some actual buyers out and about finding what they could get for their money.

One particular man looked around the property 1502 Petronia Street and said something to the affect "So this is what you get for a million dollars!) as if "not much" or "too highly priced". I had a sheet of similarly priced homes that I gave him so that compare 1502 Petronia Street to the competition.

Later in the afternoon I was driving some customers back from a showing. As we drove through Old Town the gentleman said he did not want to go through another renovation. He said he and his wife had gone through two and that was enough for a lifetime. He said he would rather spend more money and get exactly what he wanted.

I think there are a few properties located in Old Town that if purchased at the right price could become million dollar properties not too far into the future. Old Town followed by Casa Marina and then the Meadows are the most desirable areas for second home buyers in all price ranges.

I can't tell you how much any renovation will cost because each property is different. Depending on the property, HARC (Historic Architectural Review Commission) could be restrictive as to what it would permit. The lot size or configuration might also limit what a new owner could permissibly do on a renovation without getting a variance. I suggest that buyers talk to a local architect and to go to the building department to discuss in general terms what might be possible on any given property. The point of both conversations is to provide a quick education as the process one goes through and to get an idea on potential costs. Then the buyer can decide between a project property or one ready to move into.

I created a quick shopping list CLICK HERE of homes in Old Town, The Meadows and Casa Marina priced around a million dollar. Interspersed in that list are a few houses in good locations that have the potential to become million dollar houses.

I wrote about 911 Watson Street before. It could be incredible! The house itself is pure "Old Key West". And the lot is lush with all kinds of trees and plants. But it's gonna take money to renovate. (529 Olivia was added by accident and I am too lazy on Labor Day to remove it.) I wrote about 1000 South Street (it is another house where Ernest Hemingway once lived) and,if purchased at the right price, this house could be another great property.

A few months ago I wrote about 825 Southard Street. This house is next door to Michael's Restaurant to the east rear of the house. That is a serious locational minus to some buyers. And there is a cottage at the rear that is price around $300,000 that is a burden to this property. 825 Southard Street would have sold in a heartbeat, maybe more than the current asking price, if it were not for that cottage. This could be a great renovation if a buyer has the money to purchase both. Then you get to add in the costs of renovation and the property is well over the million range.

1415 Pine Street is a big house with potential. The house next door at 1411 Pine Street CLICK HERE is spectacular. It is priced at $2,495,000. Other houses on the blocks are much less expensive, but the location is really good.

A couple of weeks ago I wrote about 919-921 Southard Street. It is currently a multi-unit property that needs total renovation. I would try to get permission to tear the whole thing down and build all new. Since that is highly improbable, the next best approach might be to leave the facade and build all new beyond it. The lot is very large. My thought is that one could build a $400,000 new house on the lot, put in a $35,000 pool and add $15,000 worth of landscaping. The location would justify the cost. If HARC permitted it.

800 Elizabeth Street is burdened by those small cottages at the rear. If only they could be demolished that lot and that house have great potential. But getting permission to demolish those cottages would not be easy.

In the end I suspect a buyer would end up paying around a million dollars for any of the houses on THIS LIST. Renovations are not cheap nor are they quick. But the homeowner will get what they want (or are willing to pay for) in the end. I know that buyers can probably get bigger houses on bigger lots elsewhere. But then you wouldn't be in Key West, would you?

If you are looking for a place in Key West please consider contacting me, Gary Thomas, 305-766-2642, or by e-mail 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.

Casa Palmera - Grand Casa Marina Estate - Key West

Preferred Properties Christies Great Estates is the listing office of this one of a kind Key West estate. This is how the listing Realtor describes this property:
"Casa Palmera is truly one of Key West's Grand Estates, located in the heart of the Casa Marina just 2 blocks from the Ocean. The owner is a noted designer who has spent many years fine tuning this home into a residential masterpiece, with rich wood flooring and European details throughout. The exterior gardens and pool area, are what Key West Living is about. To the Southeast of the property is the Casita which is a home onto itself. Off to the Southwest end of the home is a Writer's cottage or office with it's own bath. The main home includes 3 guest rooms, a complete mother-in-law suite, formal dining area, two living areas, wonderful large galley kitchen, breakfast room, and Laundry room, well designed with abundant storage."

Here's the rest: I've always described the house as being a Beverly Hills type house. The south wall in both the living room on the first floor and the master bedroom on the second dramatically bow outward. Unlike so many modern houses that are built for present day trendy living, this property has many areas for entertaining or living very privately. And each space whether public or private is exquisitely detailed. You just don't see that kind of detail in new construction--not in Key West, anyway.

There is an outdoor kitchen by the pool. A really sweet balcony overlooks the pool from the second floor front bedroom with en-suite bath. You can see the Atlantic Ocean from both the master bedroom and master bath. And what a view it is. But it is when you are at ground level and walking through the beautiful gardens that you really appreciate this property. Every direction you look, you see something enchanting. You feel like you have arrived in Paradise and don't want to leave.

The guest cottage is absolutely a delight. It is stunning. Each room is simple but rich in design. Your guests will never leave. And of course there is the writer's cottage on the far west end of the property. I have a writer friend that's been written up in the New York Times and featured on National Public Radio. If you are reading this: buy this house!

If you are in the market for a grand Key West property such as Casa Palmera, please call me, Gary Thomas, 305-766-2642 to schedule a showing. Casa Palmera is offered at $3,495,000. CLICK HERE for more detailed information and many photos. If you are looking for a home in this price range, you must see this house. You will not be disappointed.

Sink or Swim -- Key West Real Estate

Two sales went through the mls yesterday that give us some insight into how the Key West real estate market is fairing these days.

Sale No. 1 was a bank foreclosure of a single family home at 1116 Eaton Street in Old Town. I showed the house about 5 weeks ago and it was pretty much the same as it was several years ago when it sold for a much higher price. The house has 2 bedrooms, one bath, a newer kitchen and a small pool. It is located on Eaton Street near the corner of White--one of the busiest intersections in town. It sits across the street from the entrance to Manley de Boer Lumber, Ace Hardware, and The Restaurant Store. CLICK HERE for more details on the house. It was listed originally for $379,900 and sold for $330,000 or $491 per sq ft.

Sale No. 2 is a Key West Landmark located at 1101 Casa Marina Court. It is the former estate of noted author Philip Caputo. It is one of the few Key West homes with a true ocean view. The home underwent some costly renovation and the gardens were extensively updated. It was originally listed for $5,750,000 and sold this week for $4,650,000 or $1,055 per sq ft. CLICK HERE for more info on this home.

For those that think the market price is Key West has totally tanked (or hope that it will), maybe your perception of the current market is a little skewed. I'm not trying to pick a fight with anyone. I think there are individual properties that are way over-priced based on condition, location, or the fuzzy logic of owners or their Realtors.

I am a pragmatist and I think the only sellers in Key West today are sellers who need to sell for some reason. Not all sales are distress sales. Some properties are "estate sales" where property is offered to help settle the estate of a recently departed. There are some divorce sales to be sure. This economic environment has cause a lot of marital stress. There are some developers or investors who have several properties that they purchased during the good times that they need to sell to reduce their mortgage payments. Those sellers may not be facing foreclosure, but they need to reduce the monthly outflow. The majority of listed properties are short sales and the offerings priced like short sales. And finally, there are the bank owned properties. They are typically, but not always, the houses that could not be sold because of legal issues, locational issues, or structural issues that made a regular sale nearly impossible.

Small houses usually sell at a higher price per square foot than a large home. Poorly located properties typically sell at a discounted price per square foot over those with a good location.
Houses on the market for a long period of time usually reflect some problem with the properties and that usually means a lower price per square foot. I don't pretend to understand how the appraisal process works, but these general rules seem to work quite consistently.

I see the sale of 1116 Eaton as being a reaffirmation of the value of Old Town as the place to buy. I remember showing similar properties to a New Yorker a few years ago. He said he didn't mind the street noise. He was used to it. He was looking for value and an Old Town location.

For those who think no house in Key West is worth a $1,000 per square foot, maybe you are mistaken. Maybe the Casa Marina sale will cause you to rethink the value of that location. I was showing a home last week to a couple who already own several homes in different locations including an apartment they purchased in the Belgravia section of London several years ago during a downturn there. They told me that the price per square foot is approaching $80,000 and that there is a line of buyers (Middle East, Russia, India and China)waiting to buy. Wish they were here!

If you are interested in buying a home or investment property in Key West CLICK HERE to checkout the Key West mls database. It is maintained in real time and you don't need any passwords to see what is available. If you would like to see a property please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. There are some deals to be had out there. Many properties are priced far below the Eaton Street house.

Key West Hole in the Water For Sale: Not Cheap

I don't own a boat so I have no idea what I am writing about except that I have heard this phrase used many times: "the happiest day of a boat owner's life is the day they buy the boat and the day they sell it." I guess anything you love can end up being expensive if you do it right or do it up "big".

Two days ago I wrote about the new Steamplant Condos that overlook the Conch Harbor Marina on the Historic Key West Seaport. That area as a whole is referred to as the Key West Bight. Click the black and white photo to the right and it enlarge to provide a better view of all the marinas in that immediate area.

The dazzling moonlight photo is taken from the Galleon Marina looking toward the Steamplant. That photo is a couple of years old and shows the Steamplant's steel skeleton.

If you own a boat and want to buy a hole in the water in Key West I have prepared a short list of boatslips that are for sale. CLICK HERE to preview the list. There are numerous new boatslips available on Stock Island at Sunset Marina, the Pennisular Marina, and Kings Point Marina. There are only a few available at the Galleon or Conch Harbor Marinas. Location plays just as big a roll in the pricing of boatslips as it does in homes. The slips located at the Bight are the ones most in demand because of their prime location. And it seems that boatslips have held there value relatively well during the past two years.

Let me help you buy a hole in the water. Call Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com for more info on other boatslips or other property