Prices are Falling! Prices are Falling!

Realization is sinking in for some would-be sellers: Selling Season is Quickly Expiring. As a result the asking price on many homes and condos are falling (being reduced). I thought it would be interesting to post a few examples of some good properties with new prices that now seem like bargains. At least bargains by Key West standards. Click on any address for a more detailed sheet and photos.

1119 Olivia This is a legal duplex located in Old Town that was totally renovated within the last two years. Originally priced at $1,275,000 and now $610,000. This is a potential short sale.

716 Olivia Street This is a new renovation that has not been lived in. Unique design, quality craftsmanship, and top of the line fixtures mark this extraordinary property. Originally listed at $2,495,000 and now offered at $1,995,000. This is a potential short sale.

814 Ashe Street New construction in Old Town. Three bedroom historic reproduction single family home with luxury finishes and features built by award-winning Key West builder. Originally listed at $2,149,999 and now priced at $1,395,000.


804 Elizabeth Street was the subject of a TV renovation project a couple of years back. The home is sharp and has a beautiful pool and garden area. Originally priced at $1,695,000 and now offered at $1,575,000.

916 Washington Street in the Casa Marina Area is a new home boasting a modern & innovative 4000 sq ft. Totaling 4 generous en-suite bedrooms and an outstanding display of luxury amenities including state of the art kitchen with pantry. Originally offered at $3,750,000 and now priced at $2,999,000.

727 Waddell Street is another newly constructed gracious home. This home boasts charming roof lines, wrap around porches & balconies located in the coveted Casa Marina Area. The home is 2800 sq ft and five en-suite bed/baths and a killer pool and garden. Originally priced at $3,300,000 and now offered at only $1,999,000 or $714 per sq ft. This home is a block from the beach friends and it is all new. Top of the line. Methinks there is a deal to be made on this one.

1800 Atlantic Unit C229 is a bank foreclosure and priced to sell now. Offered at $404,000. These CLICK HERE are the other 1800 Atlantic units. Judge the price for yourself.

There are lots of properties in all price ranges that are priced to sell. CLICK HERE to do your own search of the Key West mls database. Most of the properties are listed because the seller really wants to sell. Sometimes it takes an aggressive buyer and a good Realtor to craft an offer that gets a deal accomplished. Do your homework and find the home you think might work for you. Then give me, Gary Thomas, a call at 305-766-2642. Or e-mail me at kw1101v@aol.com.

Awesome Describes 1236 Washington St., Key West

One word describes 1236 Washington Street, Key West, Florida: Awesome.

A remarkable renovation in the renowned Casa Marina area featuring all of the requisite assets like: copious off-street parking, large pool, expansive master suite, 2 additional bedrooms with adjacent full bathrooms (and additional outdoor showers), larger than average lot size, immaculate attention to detail in every category. Upon walking through the front door, you are drawn toward a lush outdoor enjoyment area with Brazilian IPE Decking and the heated pool. The kitchen is open to the living area and features granite counter tops, wine cooler, and stainless steel appliances. Everything in this home has been updated and improved. It now has vaulted ceilings in the living room and 10 foot ceilings throughout. This house just feels comfortable, and yet, it is a showplace. I have to add that the photos of this house do not do it justice. Pic link is below.

I really like how all of the rooms open onto the outside--even the bathrooms. CLICK HERE for a pic of the indoor-outdoor shower that is part of the master bath. What an incredible bath. And the master bedroom opens onto a private area of the pool. Imagine going for a moonlight dip just before retiring. The house has a very contemporary Key West feel, but it is not "dated". There are many, many Key West houses that are renovated using the same materials that are "in" or "chic" at a particular moment, and this house avoids the cliche`. The color palette is subdued and will appeal to a wide audience of buyers. This plaza is hot!

The house at 1236 Washington is 1803 sq ft and sits on a 5656 sq ft lot and is priced at $1,649,000 or $915 per sq ft. It is located two blocks east of White Street and two blocks north of Flagler. During normal traffic you can be just about anywhere in Key West within 5 minutes. And the Atlantic Ocean is just a short 6 blocks to the south.

CLICK HERE for more pics and info on this awesome renovation, and then call me,
Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information or to schedule a showing.

Another One Bites the Dust

Remember the song "Another One Bites the Dust"? Well, the Key West Citizen has a story in today's edition CLICK HERE TO READ THE STORY about the demise of The Deli located at the corner of Truman & Simonton Streets. It was an easy going diner with good food served Key West style--slowly. I only ate there a few times. The food was good, but like everything else in Key West it got expensive.

Now you may not care about the demise of a diner, but if you live in Key West or want to buy a place here, the closing may have some meaning if you put it into context. There are several announced plans for major redevelopment projects of some favorite and maybe some not-so-favorite properties. The Holiday Inn located right when you drive over Cow Key Channel from Stock Island has been raised and the new swank BEACHSIDE KEY WEST RESORT is rising from the dust. It will be operated very much like a Ritz Carlton hotel. The same developer, the Spottswood Companies, recently announced that it had purchased several major hotels across the street and running east towards Old Town that will be raised to make way for a very large convention center and more swant hotels.

The Hotel La Concha at the corner of Fleming & Duval is supposedly being renovated into a major luxury hotel as well. Back in January I wrote about the renovation that is currently going on at the Casa Marina Hotel. It has always been a luxury property, but it got a little run down. But the project is rolling along with a total make-over of the property. It too will cater to the tony crowd.

A few blocks away The Atlantic Shores Resort has two more weeks left before it gets demolished to make way for more luxury oceanfront condos. Even the seedy Key West Youth Hostel is getting the e axe to make way for new condos.

I am sure the developers all think the gentrification and luxurization (is that a word?) of Key West is a good thing, but I wonder if the premise of the Kevin Costner flick "Field of Dreams" will come true: Build it and they will come. More importantly who are the operators going to get to staff all these new luxury hotels?

Not every tourist or regular traveler or potential second homeowner to Key West wants a luxury hotel, a luxury condo, or luxury second home. A lot of people come here just to unwind and enjoy the funk and feel of the place. Key West is normally very clean, a little noisy, but almost always a lot of fun. I think the windbags that stay at the Ritz Carlton will turn this quaint little drinking town with a fishing problem into something we may not like.

About 30 years ago a small group of people in Denver (my hometown) organized themselves into an International Olympic Committee and successfully secured the 1976 Winter Olympics for Denver. The problem was that the public didn't want the games. Another group got organized and put an issue on a statewide referendum to walk away from the games. The measure passed and the Olympics did not occur in Denver.

I really question the merit of redeveloping so much of the infrastructure that helped make Key West such an inviting place. If it gets turned into another Boca Raton, why will people even consier coming here.

I'm not all that pessimistic. I still think people will want to come to Key West. And if you want to buy a place here, checkout our mls website by CLICKING HERE and then call me for more info. 1-305-766-2642.

Dog Day Afternoon

No I didn't rob a bank. And that is not a picture of me.

It is a beautiful Saturday afternoon in Key West. I just came inside from the pool and decided I wanted to share a couple more thoughts about the joy of living in Key West.

First, we have the best dogs anywhere. They can belly up to the bar in almost any drinking establishment in town. And many of them can even ride a bike or scooter. When I first came to visit Key West back in 1984 dogs could even take a nap in the streets. Those days are gone, I'm afraid. But the afternoons still belong to the dogs.

Second, we have cats. We have more cats per capita than anywhere in the United States--I'm sure of that. People that don't own cats have cats. There are everywhere. The Hemingway House is famous for its cats. My street is famous for its number of cats. And I don't live anywhere near the Hemingway House.

Third, we have chickens. CBS News and other media have reported on our chickens. They are famous by now. We even have a chicken store on upper Duval Street. Yesterday around 10 AM I saw a tourist heading out of town. I'll put this mildly, he had chicken**** all over his rental car. He must have parked his car under a tree. (Chickens spend the nights in trees to avoid the cats.)

Fourth, I have never seen a dead chicken. But I have seen many fat cats.

Speaking of fat cats, if you are one and want to buy a vacation home in Key West, you can CLICK HERE to search all of the homes available in Key West. And then call me at 1-305-766-2642 to get more information or to set up a showing.

Casa Marina Residences

I have mentioned the Casa Marina area several times in my blog. It is the neighborhood near the historic Casa Marina Hotel. Many of the homes in the area were built post World War II, but there are several large old homes that are over a hundred years old as well. The streets are wider and less busy than Old Town. Some of the streets have paved sidewalks and others do not. The building lots are generally much larger than most of the lots in Old Town. There seems to be a greater variety and more trees than Old Town as well. And there certainly are not as many businesses or tourists.

Casa Marina Residences is a new and ultra-exclusive intimate enclave of only 12 new luxury villas nestled between the Atlantic Ocean and Casa Marina Resort & Beach Club. Each of the 3 bedroom 3 bath home will enjoy luxury amenities including individual elevators, private plunge pools, garden patio, spacious balconies, covered parking & wired for state of the art technology. Owners will enjoy a state of the art fitness club, tranquil destination spa, tennis, private beach access, tropical pools, onsite water sports & multiple dining opportunities. Water front units available ranging from $2.5 million - $3.5 million. (Pre-Construction Prices.) CLICK HERE for information and photos of the new ocean front development.

I think this development will be just right for a second home owner who wants all the comfort of living in an exclusive resort type atmosphere with amenities galore but also with the privacy of individual home ownership. Only four units have been released for pre-sales. Look for the prices to escalate as construction continues. This will be a winner. Mark my words. Call me at 1-305-766-2642 for more information.

All About the Benjamins

All About the Benjamins
One of the current media trends is comparing similarly priced homes in different parts of the country. The February 2007 issue of Key West magazine compares a home at 416 Elizabeth priced at $3,9 million to a home in Santa Fe and a home at 800 Amelia priced at $2,395,000 to a home in Malibu priced at $2,4 million. HGTV has a weekly program that does the same. In each instance price comparisons help potential buyers pick the best buy for the buck. So, by extrapolation, home buying is All About the Benjamins.

I started today on the treadmill at the gym, which lead me to consider the present value of big homes in Key West in the current market. There are 31 homes priced at $3 million or more in the Old Town area of Key West. With a couple of glaring exceptions, most are reasonably priced to sell in the current Key West real estate market or about 115% over the target sales price. There were seven sales of single family homes priced above $3 million in Old Town since January 2006. There is clearly a bigger supply of big houses than there are buyers. And come to think of it, there are a bunch of homes priced just under $3 million like the El Encanto I wrote about on January 26th.

I think some of these big homes are bargains. Some are under priced because the real estate market in Key West is currently undervalued as compared to other parts of the world. Some sellers must sell their homes and have priced them to sell. That is different from sellers who may sell if they can get "their price".

Our market does not compare to Miami or Ft Lauderdale. I think our market compares to other world class destinations, at least the upper end does. Many Europeans have second homes in Key West. The Euro and the British Pound are far more valuable than the American dollar which makes a second home in Key West or any other destination resort more affordable for wealthy Europeans.

The homes to the right tell us a story about what is coming in Key West. The house under construction at the corner of Whalton and Johnson Streets in the Casa Marina area is a prime example. I don't know the owner or builder, or the estimated construction costs. The owner bought the lot in 2005 for $1,850,000 and the new home will surely cost somewhere around $1.5 - $2 million to construct.

The house across the street at the corner of Whalton and Casa Marina Court sold in July 2006 for $3.4 million. It was previously owned by author Philip Caputo and had seen better days. There is a construction crew there now doing what they do--rebuilding homes in paradise. This house has ocean views and immense grounds. I expect the new owner will be spending in excess of $1 million on updating this home.

Another big house is going up at the Grinnell and Johnson Streets. The house next door is priced at $3.5 million. The house across the street (also shown with magnificent palms) was put on the market a couple of months ago at $3.5 million and went under contract within two weeks.

These homes in the Casa Marina area are expensive by Key West standards, but may be under priced as compared to homes in other destination resorts. I think they are buying opportunities.

The Big Bounce

The Big Bounce


I have lived in Key West for 13 years and have shared two major life-changing events during that time. The first was 911 and the second was Hurricane Wilma.

I was at the gym that fateful morning. Ron who worked the front desk said a member just called him and said two planes (a big one and a small one) had hit the World Trade Center. I knew the chance of that being an accident was impossible. I suspected the worse, but did not know what the worse was. I sped home on my bike screaming expletives. When I got inside the kitchen I turned on the tv to watch the horror as it happened. We all remember the madness as is unfolded.

I had afternoon floor duty that day and I questioned why we were keeping the office open. But I went as requested (I was at a different company then). Town got dead real quick. There was little traffic and hardly any tourists. They closed the office about an hour after I showed up. I drove out to Walgreens to stock up on vodka, knowing the next few days would be awful. The clerk did not really understand what had happened. I told him, and he got the most awful pained look on his face. He said he had heard that the navy had posted armed guards at Sigsbee. I drove out to see them. Yep, they had their weapons out.

Town (that's what a lot of call Key West) died that day. Business went away. Fantasy Fest occurred, but it was subdued. The tourists just did not return for the normal fall schedule of events.

Then the day after Christmas town bounced back---big time! And the dead real estate market exploded. The demand for real estate could not be met. Prices rose by double digits for Key West and the other Keys as well each year through 2005. Buyers started questioning whether the market could continue to grow at the rate it had for the previous 4 years. Reason suggested that the market would continue to grow, but not at the rate previously experienced.

By Spring 2006 (prime selling time in Key West) the market slowed a bit. Then we had four hurricanes. Each one brought CNN and other national media to report on the fools walking on Duval Street hours before each hurricane. They could have shown re-runs of the previous storms because each hurricane was the same--until Wilma. Yes, we had some damage with each hurricane. Usually the wind uproots a few trees that fall on roofs or a car. Some minor flooding, but usually no structural damage related to flooding. But Wilma changed that as well.

Hurricane Wilma brought wind and water damage from one end of the island to the other. Most of the Old Town area was spared flood damage. But the damage elsewhere was physically and emotionally devastating for most of us. People with nothing and people with very expensive homes and toys shared equally in their losses.

I rode my bike around town every day for over a month just looking at the piles of trash and debris piled in the streets. The winds and ocean water from the tidal surge took its toll on our lush green gem of an isle. The palms and ferns looked like hell. The small foliage we all see and enjoy seemed to disappear. The island was no longer green, but grey.

But one of the great things about living in Key West is the resilience of the people who live here. When someone is injured or gets desperately ill, there is always some fund raiser to help raise funds. The people who live here do care about each other. We really do care.

I wrote last week about the smell you experience when you get off the plane at Key West International Airport. The very next day my neighbor across the street who moved to North Carolina in the spring of 2006 was down to check on her house. She mentioned the smell when she got off the plane and noted how beautiful everything was again. She said she forgot how beautiful Key West is.

The pics to the right show a huge tree in the Battleship Maine's cemetery on White Street, a tree near the Casa Marina hotel that toppled during Wilma, a house on upper Duval that was being remodeled as it looked on Nov 17, 2005 and a pic as it looks today, Jan 30, 2007.

Key West bounced back from 911. I'm waiting for The Big Bounce to occur in the real estate market. It will come.