Key West Bottom Feeders - Part Two

A year ago today I wrote about the month ending May 31, 2008. CLICK HERE to see what I wrote then in full. Everybody in town continues to be an expert on the state of Key West real estate sales and our local economy. I still use this blog to lure new buyers. And I still don't associate with Realtors during my time away from work.

There were 7 single family homes sales in all of Key West during the month of May 2009. Two were short sales and one was a bank owned property at 910 United Street. I showed that house at least a dozen times. That place had huge locational and structural issues in my opinion. The house was sagging terribly on one side and had the misfortune of having one hell of a tree in the yard which may prevent any owner from ever putting in a pool to take advantage of the otherwise enormous lot. Oh, it's on a busy street to boot. It sold for $488,000 or $221 per sq ft. Another house located at 1300 Seminary Street (originally priced $1,869,000 in 2005 and sporadically reduced) sold for $1,035,000 (or $524 per sq ft)after just 27 days on the market when it was offered at $1,188,000.

The least expensive house to sell went for $270,000. The most expensive maxed out at only $1,100,000. (I had a buyer that submitted a higher all cash offer on that place last fall. The Seller should have taken the bird in the hand offer rather than wait for more money. I remember an email I sent to the listing Realtor warning about the cost of holding that property [monthly mortgage payments, utilities, pool maintenance, etc. which I estimated to be around $7000 per month]. My buyer bought something else in a better location at a better price.) The average price per sq ft on single family homes in all of Key West in May was $370. But readers need to be aware of the marked disparity of properties and locations. That price per sq ft is not proof of anything.

There were 14 condo and townhome sales during May. Two of those were shown as short sales. But 7 were bank owned properties. None of the remaining 5 sales was anything to write home about. So at least 64% of the sales that closed were problem properties. The least expensive unit sold for $110,250 and the most expensive only sold for $405,000. The average price per sq ft for units sold was a mere $261.

Here is some food for thoughtfor you bottom feeders: there are 110 properties single family properties shown as contingent or contract pending. Ten of the properties are already bank owned. Sixty-five of the houses are officially designated as short sales. Ten that I counted are bank owned. That means at least 68% of the single family homes in Key West currently under contact are distress sales. The positive spin on that number is that 110 properties are under contract. Not all will close. But I have to think a great number will. Consider the alternative. Is Countrywide or any other big lender prepared to own that many houses in Key West to get a better deal? The short sale contract between the short sale owner and the short sale buyer may not get accepted by the short sale lender, but I cannot accept the big national lenders wanting to absorb more bank owned properties.

There are 104 condos and townhomes shown as contingent or contract pending. Fifteen of those are already bank owned and 70 are designated as short sales. That means 82% of the condos and townhomes are officially distress properties. But there is some good news about a couple of the contingent properties. Two luxury units at Harbour Place went under contract in May, and neither is a distress sale. There is also a unit with a full transient rental license at Beach Club under contract, and it is not a distress sale either.

We are working our way through the inventory of available homes, condos and townhomes. The inventory is shrinking. I can't definitively state we are at the bottom of the downturn, but we must be pretty close.

If you want to buy your place in Paradise before the big one eludes you forever, CLICK HERE to search the Key West Association of Realtors mls database. Nobody will track your movement on the Internet and your personal information will not be collected by me. If you see a property that interests you, please call 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. Our office is an affiliate of Christies Great Estates.

Verry Interesting!

If you are old enough to remember Rowan & Martin's "Laugh In", you'll surely remember Arte Johnson's German Soldier character as he peered through bushes and chortled "Verry interesting!". I don't know that I am chortling, but I do think I just found some very interesting sales statistics for Key West real estate. Earlier this month I recapped the April 2009 sales figures. We have had a fairly remarkable sales week just in my office. And that got me to wondering what else is going on. This is what I found:

There are seven single family homes sales "pending" in Key West. A pending sale means that all conditions of the contract of sale have been met and that the parties are just waiting to close. Two of the seven pending contracts are for "bank owned" homes. Three of the seven pending contracts are for properties priced above $1,180,000. There are nine condo, town home, duplex, and multi-family homes under contract. Two of those are short sales and three are "bank owned" properties. We should see most of the pending contracts result in actual closings sometime in the next 30 to 45 days.

This next part is "verry interesting": there are 88 single family homes listed as contingent in our local mls database. Contingent means that some condition in the contract (such as financing, home inspection, or other condition precedent) has yet to occur. When all conditions have been cleared, the contract is then re-classified as pending. If the condition cannot be satisfied (buyer cannot obtain financing, for example), the contract may fail. Fifty-six (or 63%)of the 88 single family home contracts are designated as "short sales" and 8 (or 9%) of the contacts are for "bank owned" properties. And those numbers only reflect what the listing Realtors have committed to writing regarding the contracts. I have spoken with other Realtors that have told me properties shown as contingent are also short sales but are not designated that way in the mls database. The importance of this is that something in excess of 75% of the single family homes sales in Key West that are effectively designated as distress sales.

The news on condos, town homes, duplexes and multi-family is about the same. There are 100 such properties designated as contingent. Fifty-six of those (56%) are short sales and 8 (8%) are bank owned properties. Not all short sales actually close, but the lenders are speeding up the approval process. More importantly, the number of short sale and bank owned contracts is whittling away at the perceived "over supply" of property. When all the excess (most of which are low-end)properties are sold, the Key West real estate market may be headed back to a sense of equilibrium. I mentioned the three pending single family home sales above $1,180,000. That's because we haven't had many such sales. The market has been depressed and buyers have not been buying. They have been sitting on the sidelines. Waiting. Waiting for the prices to fall more and more. And they have. Fallen.

There are 425 active single family homes listed for sale in Key West (from Mile Marker One at Mallory Square to Shark Key). None of these houses are officially designated as "short sales". Two Hundred-two or 47.5% of the active listings are located in Old Town, The Meadows, Casa Marina, and Sunset Key. There are an additional 12 single family homes in the same areas that are designated as "short sales" in the mls database. They range in price between $299,000 to $1,998,000 with a price per square foot variance between $304 to $572.

There are 147 condos, townhomes, duplexes, and multi-family properties in the Key West area actively listed for sale plus and additional 28 officially designated "short sale". (Some Realtors do not designate their listings correctly, so I am reporting what they input into the database even though their listings may be in error.)

I sense that we may be nearing the end of the down market. We still have to sell off all the excess inventory of unsold houses and condos. But for buyers looking to purchase a dream home in Key West, there just are not a lot of dreamy houses available. People that do not need to sell are pretty much not listing their properties. Buyers are resisting the prices of nice houses and are waiting for prices to fall. By the end of August or early September we will see who wins the waiting game. Hurricane season is approaching. It will be interesting to see how many buyers will be heading this way to snap up a house this summer. Verry interesting.

If you have been waiting for the bottom of the market, maybe you will agree with me that we may be near the bottom. CLICK HERE to search the Key West Association of Realtors mls database. If you see a property that you like, please consider working with me to help you find your place in Paradise. Please contact me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com.

April Sales Recap for Key West

It's that time of the month again: time to report on what happened in Key West real estate sales for the prior month. I think I am a pretty optimistic person. I'm old enough and seen enough not to get too rattled by the Swine Flu Scare and the Chrysler Bankruptcy. I know thousands won't die of the flu and that Chrysler will emerge from bankruptcy and continue to manufacture Jeeps and convertibles. That is why I am not frightened by the seemingly sad numbers for the month of April 2009 as compared to prior years.

There were 11 single family homes sales in all of Key West for the month of April with an average price per foot of $455. Two of the sales were "short sales" and one was a bank owned property. Notable sales included three I wrote about here earlier including 608 William Street that sold at $670,000 or $890 per sq ft; 708 Eaton Street that sold for $2,400,000 or $724 per sq ft; and 912 Fleming Street that sold for $372 per sq ft. 608 William Street is a tiny little gem in a great Old Town location. Remember when I wrote yesterday about people that buy a look, a lot, and a location? 608 William Street had all three nailed!

708 Eaton Street is a big property on a busy street during the daytime, yet it commanded a huge price per sq ft. Proof again that quality does matter to discerning buyers.

And don't forget 912 Fleming Street. It has one of the best locations in Old Town and is surrounded by multi-million dollar homes on all sides. The house is in good condition and has a gorgeous pool and rear courtyard. Congratulation to the new owners, Sean & Kellee.

In 2008 there were 11 single family homes sales in all of Key West and the price per sq ft then was $419.

Condo and Townhome sales in Key West in April were not quite as fortunate. There were 10 such sales in April. Three were "short sales" and three were bank owned properties. The average price per sq ft was only $271. In 2008 there were 11 sales with an average price per sq ft of $537. In 2007 there were 20 sales where the price per sq ft was $751. (Four of those sales were of units at Santa Maria Condominiums. Several units there are now offered as short sales with prices discounted in the hundreds of thousands of dollars!) And in 2006 there were 12 condo and townhome sales with an average price per sq ft of $791.

The number of sales in 2006, 2008, and 2009 is fairly consistent. If you take out the four Santa Maria sales for 2007, all four years have about the same number of units changing hands each year. But the price degradation is disturbing. Short sales and bank owned units at the golf course, Shipyard, Seaside, and similar properties have just decimated that market. I watch the filing of Lis Pendens in the Monroe County Clerk's office. The filing of new Lis Pendens on condos and townhomes is not stopping. I haven't tracked how many were filed previously and I can't state the numbers currently. But there are enough to make me think we have not seen the bottom of foreclosures in the condo and townhome sector of our market.

I think there are some real bargains in the condo and townhome market. A buyer has to look not only at the price of a particular unit but also the developments, the strength of the the home owners associations, the reserves held by the associations, and the condition of each unit. Some units are better than others. And some developments are better maintained than others. So if you are looking to purchase a condo or town home, take your time, do your homework, and buy wisely.

When I started today's blog I said I'm optimistic. Everything I just wrote sounds bad however. Sales are down in dollars and percentages over years past. On the other hand, there are lots of buyers. Everybody I know is writing offers. Many of those offers are screwball and low-ball offers that do not have a chance of getting accepted either by the seller or a lender in a short sale scenario. The other day I got an e-mail from a local lender offering 4.5% 30 year mortgage money. That makes buying a place in Paradise much more affordable. There are not a lot of houses in the Old Town and Casa Marina area under the million dollar benchmark. My advice is to think big and think bold. Houses that have not sold during season are languishing for a reason: they are probably over-priced. I think there is a group of houses in the $1.2 million range that are nearly ripe for purchase. Wait until hurricane season and see how ripe they are then.

If you are looking to buy a place in Paradise, please consider working with me,Gary Thomas, 305-766-2642. I am a full time Realtor at Preferred Properties Coastal Realty Inc. E-mail me at kw1101v@aol.com. Let me help you find your place in Paradise.

Key West Condo & Townhouse Short Sales - 2

A few days ago I wrote about Condo and Townhouse Short Sales in the Old Town Key West area. Those units are normally priced higher than other areas of Key West because that area is more sought after by second home owners. Today I am featuring properties in Mid Town & New Town CLICK HERE and Stock Island CLICK HERE.

There are a couple of pretty good steals in the 61 properties featured on the above links. Do your homework and checkout the properties. There are two units at Seaside South and one at the Key West Beachside Resort that should be seen by a buyer looking for new quality construction at an affordable price. Unit #121 is offered at $550,000 fully furnished and it has two Transient Licenses.

There are several short sales at Coral Hammock on Stock Island. Unit at 35 is the least expensive and it is offered at only $249,000 for a two bedroom two bath two story unit. It is located off US 1. You can hear the highway traffic when you are outside, but it's pretty quite inside. Unit at 44 is offered at $399,000 and it has 3 bedrooms and 3 baths and a better location.

There are some buying opportunities among the 61 properties on the two links. Some of the properties might work well for permanent residents of Key West. Many of those properties have become very affordable by Key West standards. And a few of the units may appeal to second home owners as well. Take your time and compare the properties.

If you see a property or two that interest you and you want to schedule a showing, please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

January Real Estate Sales in Key West

I've been telling you that sales are picking up in Key West and advising you not to wait too long before you buy. Snoozers are Losers!

In January there were ten single family home sales in Key West (including a couple of properties that could be used as legal duplexes). Going either way is common in Key West, I guess. I have written about several of the homes that sold and I gotta tell you, I told you they were bargains to be had. Included were 701 Elizabeth, originally $1,579,000 and sold for $695,000 (Not a Short Sale nor a distress sale); 3 Pinder Lane, originally listed for $1,390,000 and sold for $900,000; 716 Olivia Street (originally listed for $2,895,000 and sold for $1,025,126 in one day). The buyers on the above referenced properties made excellent buys in my opinion. A major Key West house sold that was listed for $6,495,000 and sold for $5,700,000.

There were eight condo and townhome sales during January. Four of those were identified as either bank owned properties or short sales. Among the winners of that group are a unit at 1075 Duval with a real transient license. It sold for an incredible $439,774. A third floor bank owned unit at Sunset Marina with a terrific water view sold for $399,000. And a two story townhome at Windward Park sold for just $400,000.

Even, perhaps, more interesting is the number of contingent and pending single family and duplex properties in Key West. Fifty-three properties are now under contract. Of that number, 26 are shown as short sales and 11 were identified as bank owned properties. In case you think that all short sales are crappy little houses that could not be sold CLICK HERE. The incredible house at 811 Southard is a short sale and somebody snagged this big one. I wrote about 1212 Olivia CLICK HERE. It is a bank owned house on a really nice block. I showed that house twice within a couple of hours of when it was listed. (Just as in the case of the sold bank owned home at 716 Olivia CLICK HERE (scroll down to October 27th) mentioned above under single family sales, this unit reportedly went for a little more than the asking price just so that the buyer could seal the deal.)

Finally, thirty one condos and town homes are shown as contingent or pending sales. Of that number, 15 are short sales and 6 are bank owned properties. The most notable in my opinion is the gift at 1118 Olivia Street that was listed at only $359,000. CLICK HERE to see what I wrote about that property that went under contract just 4 days after being listed.

You need to be aware that there is some confusion about how to classify houses and condos that have signed short sale contracts. Not all properties that have signed short sale contracts are listed as such. I believe the number of actual contingent and pending sales is much, much higher. But that is just my opinion.

Buyers who are not in Key West have a bit of a disadvantage to those people who happen to be here when new properties get listed or when prices are reduced. But that should not stop you from using your computer to do some research and using your noggin to figure out if a particular property could work for you. You probably know what you want and what you can afford. I encourage potential buyers to search the real Key West Association of Realtors mls database CLICK HERE to see what kind of property they can buy for the money they want to spend. Always look at properties priced higher than you can afford and search properties with less space or amenities than you require. CASH is KING and you may be able to negotiate a real sweet deal, just like some of the lucky buyers mentioned above.

Let me, Gary Thomas, help you buy your place in Paradise. Please either call me at 305-766-2642 or 3-mail me at kw1101v@aol.com. Tell me what you want and how much you want to pay. You might own a place in Key West where you can snooze on the beach.

Key West Short Sales to Dream About

There are 85 condos and townhomes in Key West currently listed as "Short Sales" but there probably more because the listing agent may not have clicked the right button when adding the listing to the mls database or the owner does not want everyone to know his financial plight. Both of those happen. I went through the 85 and selected 13 (don't know if that's a good number or not!) for you to consider. Each unit is in a good location. Some units have transient licenses are are available for legal transient rentals on a daily basis all year long (except units in Truman Annex which have some limitations). All are units that one might actually dream about owning.

CLICK HERE to see the list.

Sunset Marina is on Stock Island across the street from the Key West Golf Club. It is about the same size as units at 1800 Atlantic and priced competitively. All of the units have direct marina views. There is a pool, covered parking, a small gym, and the place was built very well.

120 Angela Street is a small complex of only four units, two up and two down. Each is outfitted with beautiful kitchens and baths, attractive floorings, and comfortable living spaces. Each unit has one off street parking space and there is a beautiful pool and comfortable island landscaping. It's located next door to The Shipyard condos, priced lower, has more space, and much more private.

Two units at 1401 Simonton are included (Santa Maria Condominiums). Theses units are re-sales at a much lower price than the owners paid. The Santa Maria stays booked constantly. So these units might make more economic sense if they are purchased at a lower price (on a short sale) that actually has the potential to make money (or not lose money) for the owner.

1108 Duval is the Cuban Club. Great Old Town location and use of the pool at the Douglas House make this unit attractive to vacationers. The management fees are higher, but the units here seem to stay busy most of the year.

Two units at Seaside at the east edge of Key West are included. Both are three story with private garages, private elevators, ocean views, lots of quality living space on three levels, and the buildings were new in 2005.

There is a cute little place on Windsor Lane located between the Key West Cemetery and the top of Solares Hill. It has its own little pool and 2 bedrooms and a bath.

I included one unit at 1800 Atlantic in the A building. Terrific ocean and nature preserve views.

The townhome at 809 Washington Street in Casa Marina was built in 2007. It has its own private pool and garden, custom floors, cathedral ceilings, and a beautiful kitchen. Off street parking, of course. And multi-million dollar homes all around.

514 Porter Lane in the Truman Annex President's Walk area is a comfortable entry level two story town house with two bedrooms and three baths.

3841 N. Roosevelt is the new (2007) Beachside Resort. Westin Hotels is now managing the facility and owners with transient licenses (such as this one) can use the Westin as the property manager or rent the unit themselves or with any other company. Other re-sales are priced considerably!!! higher.

I wrote about 1075 Duval in Duval Square a couple of days ago. This is a good price for someone looking for a transient unit in a good location.

If any of these units look attractive to you, please call me, Gary Thomas, 305-766-2642,or e-mail me at kw1101v@aol.com. You could be a Key Wester sooner than you think for a price you might never have imagined. Lay back, relax, and imagine your life in Paradise..........

Some Neat Key West Condo Short Sales

I just did a quick search of the Key West mls to find condos and townhomes on the Island of Key West that are offered as short sales. There are 76 such sales available as of this morning. A short sale occurs where the seller offers to sell the home for less than what he or she owes to the lender, and the lender agrees to accept this amount and "forgive" the remaining balance.

There have been a bunch of short sales in Key West over the past year and the lenders and local Realtors are getting better at managing these sales on all sides. (Thanks to the other professionals like the title companies and local real estate attorneys that are shepherding these sales through to completion.)

I selected several properties to consider. I like these units because of location, value, potential future value, and income potential.

Unit 421 Beachside Condos is oceanfront living DeLuxe. You could not ask for a better price, better construction, or amenities. This unit is the least expensive unit available and it is offered at $599,000. CLICK HERE for more info and photos.
It has two (2) transient rental licenses. You can rent the unit on your own, hire a local property management company, or use the services of the Marriott Hotel group that is taking over property management of the other units that participate in the rental program. Or just live in the lap of luxury at a Class A resort.

Unit A 213 at 1800 Atlantic Condos sits at the rear courtyard corner and has a transient rental license. The listing agent reports that this unit is one of the most often rented units in the complex. CLICK HERE for more info on this unit that is offered at $489,000. Future bookings are included.

Unit 32 at the Santa Maria Condominiums at 1401 Simonton Street is a short sale offered at $925,000 for the two bedroom 2 1/2 bath unit with transient license 1/2 block from the Atlantic Ocean. CLICK HERE for details. Guests have beach and other privileges at the Reach Resort next door. There are 13 units available at Santa Maria. Get aggressive and strike a bargain.

31 Seaside South is located on the far east end of the Island and has views of the Atlantic Ocean from the living room and master bedroom. The unit has an enclosed garage, a private elevator between all three floors, and the place is built like a fortress. There is a small outdoor space where you might be able to add a dip pool or create a nice garden. CLICK HERE for photos and more info on this unit offered at only $619,000. The furniture is not included but may be purchased separately.

How about a two bedroom unit on Solares Hill on 709 Windsor Lane priced offered at only $449,000? CLICK HERE for photos and more details. This place is located right in the heart of Old Town so you are near everything but far from the noise makers. And it has a cocktail pool to boot.

809 Washington Street Unit 101 is offered at $1,150,000. CLICK HERE for photos and detailed info on this newly constructed town home in the heart of the Casa Marina Area. The town home is a spacious 1876 square feet on three floors and has its own private pool and garden area. Great details throughout the home and the location make this worth the look.

Remember that the asking price on short sales is the same as any other property. And in today's volatile market, the sales price is often much less. Most of the units I selected can be rented as vacation rentals or as transient rentals. This could provide some cash flow to help make the purchase more affordable--in case that matters.

CLICK HERE to perform your own independent search of the Key West mls to find the potential deal in your future. Simply identify the type of property you want to find, the geographic area, the price range, and any more specific features you want. Remember that people create the input and sometimes people omit some features. So it may be advisable to be more lenient on features or size and more generous on price just to expand your potential search.

If you would like more information on any of the condos shown above please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me help you find your place in Paradise. And hopefully save a whole lot of money in the process!

Key West - Bank Owned - Sunset Marina Condo

Two Bank Owned units at the Key West Sunset Marina were listed for sale on the exact same day last week. Both are on the same floor but each is located in a different building in the same complex and one is slightly larger than the other. I'll leave to the reader to decide if you find either of the two Bank Owned properties to be a "deal". I know some reader is already to proclaim nothing is a deal in Key West. But for those willing to look and consider, your opinion may be different.

Sunset Marina is located on the western edge of Stock Island, the island just before Key West if you are traveling by car. Stock Island has trailer parks, tattoo parlors, a Burger King, a great Mexican restaurant, a community golf course, a bunch of cheap condos, the County Jail, a trash transfer station, the impressive Sunset Marina itself with slips both small and large, and four relatively new and structurally solid condominiums developed in conjunction with the marina.

The four buildings were built in 2001. The private entry is gated and beautifully landscaped. All units are accessed for an exterior open air balcony that looks towards what locals call "Mount Trashmor". That is a now defunct landfill that has been landscaped. It is there forever and if that bothers you, don't read further.

The units are all pretty much the same as far as layout and size. Units located higher in the building or further toward the west tend to be priced higher. But pricing of real estate is pretty much a locational consideration in most sales isn't it.

5603 College Road, Unit 303 C is bank owned and is offered at $479,900 or $449 per sq ft. CLICK HERE to see more photos and info on this unit. Don't let the photos dissuade you from looking. The views are incredible.

5601 College Road, Unit C 303 is also bank owned. It has 1024 sq ft and is offered at $399,000 or $390 per sq ft. CLICK HERE for more info on this unit. Sorry, the listing Realtor forgot to include photos.

CLICK HERE to take a quick look at all of the units currently available at Sunset Marina Condominiums. If you are looking for a deal, perhaps one of the two bank owned units may work for you. Another unit is offered as a short sale, so you might get lucky and get a sweet deal on that unit. But there are a couple of penthouse units that may lure you to the top floor. The views at Sunset Marina are what would-be buyers dream about. The complex has a beautiful pool, a clubhouse, covered parking for your car and golf cart. That comes in handy because the Key West golf course is located right across the street. But your house doesn't get hit by errant golf balls. If you have a boat, the marina is the perfect Key West spot to make your second home.

If you would like to see one of the bank owned units (or any other property), please call me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com.

Key West Beachside Ocean Front Condo

Attention Maties! There is treasure to be found in this sweet listing of Unit 421 in the new Beachside Resort. People that read my blog know I don't just hype things. I try to get people to consider options when they are looking at purchasing a permanent home or a second home or income property in Key West. Not all jewels are located in Old Town. If you are looking for a condo with two transient licenses, this gem may pique your interest.

Here are the details: Unit 421 Beachside Resort is a 1357 sq ft a 2 Bedroom 2.5 Bath, type A floor plan with lockout feature & 2 transient licenses for optimal rental potential. All of the finest amenities including designer furniture package grace this 2nd floor luxury condominium situated in building 4 with a pool and courtyard view. Beautifully appointed floor plan with gourmet kitchen overlooking comfortable living room and spacious covered balcony. Endless on-site resort amenities include private beach (inviting hammock supplied), heated waterfront pool, spa, poolside bar and grill, valet parking, concierge, optional on-site management, gourmet restaurant; and the island's largest conference center.

CLICK HERE for more detailed info on Unit 421 and additional photos. This place is super high end. You walk in the front door and it is like walking into an ante room of a Ritz Carlton. High ceilings, crown molding, massive wood doors, polished brass fixtures, marble floors, high tech kitchen, elegant bathrooms, luxurious bedrooms, quiet: these are among the features of this and every unit with the designer furnishings that are included in the asking price.

There are two transient licenses. One bedroom is entered right off the formal entry. It can be legally rented as a "hotel room" on a nightly basis or as part of the entire unit as a two bedroom condo. Or both units could be rented separately.

Unit 421 is priced at $599,000. That is $441 per sq ft. Experienced lookers know the price of everything in Key West. You know that $599,000 is an incredible price. But for those who are not so familiar with prices, CLICK HERE to see the list prices on the remaining units at Beachside. Unit 421 beats every property offered. When this unit sells, and it will, there will be no more priced like it. This is a deal limited to one buyer only. When it is sold, there will be no more--at that price. That does not mean the other units are priced too high. Every unit is different in size, layout, and location.

I suggest that seasoned shoppers look at this unit and compare what you will get for your dollar versus a similarly sized unit at 1800 Atlantic or a much small unit at Truman Annex that is priced similarly. There is no comparison. This property wins. True units at Truman Annex are very close to the rock and roll of Duval. And 1800 Atlantic has a loyal group of vacationers that return year after year. But Beachside is new and far from the madding crowd.

Would you like to see the Beachside Resort and test my theory of value? Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. This is an exceptional property at an exceptional price. Maybe you are the exceptional buyer who will grab this little gem.

Key West Beach Club Condos

Not everybody wants to own a place directly on the ocean where you can wake up in the morning to the sound of gentle surf rolling ashore just below your bedroom window. But a whole lot of people would love the opportunity to own such a property. Especially if it were affordably priced and located in Key West, Florida. Well this is your opportunity.

I have written before about the desirability of the Shipyard Condos in Old Town and the much larger units at 1800 Atlantic Blvd. to second home owners. The location, size, and creature comforts of each has made both projects very popular second home choices.

Until the market decline over the past three years the units at the Key West Beach Club have been an even more popular choice to the few who had the opportunity to even buy a unit. Historically, very few units at Key West Beach Club went on the market and when a unit was offered for sale, it would sell very quickly. If you have ever been to the Key West Beach Club you know the reason why. Each unit is located directly on the Atlantic Ocean. Each unit has a spectacular right-in-your-face ocean view. Most of the units are two bedroom and two baths, but there are a few three bedroom units and a couple of spectacular penthouses. As with other projects of similar age, there is some price variation among units based on remodels and upgrades and floor level. But all units share the same view, the same tennis courts, the use of the gym, the pools, the covered parking. And most of all they share the distinction of being the only condos located directly on the ocean in Key West.

Unit 104 is a 2/2 built in 1985 and is priced at $775,000 or $553 per sq ft. And it has a valuable Transient License which means you can rent it on a daily basis to help defray the cost of purchase. You are not required to rent it, but it is a valuable option to possess. CLICK HERE for more info on Unit104.

Unit 105 is also a 2/2 and is offered at $875,000 or $625 per sq ft. This unit is located at the end of the building and has the most privacy going. CLICK HERE for more info on Unit 105.

Unit 107 is a two bed / 2 bath unit that was built in 1987. This unit is priced at #1,375,000 or $962 per sq ft. CLICK HERE for more photos and info on Unit 107.

Unit 115 is the largest unit offered. It has three bedrooms and two baths. It is located at the far east end of the east building. It is offered at the price of $1,200,000 or $766 per sq. ft. The home is being sold furnished and currently is the only one of this type floor plan on the market. CLICK HERE for more photos and info on Unit115.

Unit 210 is a two bed / two bath unit that was just recently listed. It is offered at the price of $999,000 or $699 per sq. ft for this 1430 Sq. ft. unit in the east building. CLICK HERE for photos and info on Unit 210.

Penthouse Unit 406Very rare offering of a top floor 2 level end unit home at the Key West Beach Club. This beautiful luxury condominium main level includes 2 bedrooms, 2 baths, large living/dining room and a separate den. Upstairs is an enormous 3rd bedroom/loft and bath. Recent upgrades include 24" x 24" marble tile floors, crown molding, designer lighting and hurricane wind impact resistant doors and windows. This unit is offered at $2,500,000 or $892 per sq.ft. CLICK HERE for additional photos and information on Unit 406.

Luxury amenities at the Key West Beach Club include two oceanfront pools, tennis court, gym, outdoor entertaining areas with cooking facilities, covered parking, additional storage, and gated entry. Condo fees of $2500 are paid quarterly and include Cable, Exterminating, Building Exterior Maintenance, Building Insurance, Common Area Maintenance, Pool Maintenance, and Security.

If you would like to see any unit at the Key West Beach Club or any other Key West real estate listing, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

1800 Atlantic Condominiums --Key West

"When you finally feel like you are really there. Warm sand." CLICK HERE to see why so many people travel so far to enjoy Key West.

Most people in the United States work 50 weeks a year just to make enough money to have a vacation. For many people it isn't even the cost of a vacation, it is their jobs that prevent them from taking more vacations. I used to live in the real 9-to-5 world, but I was smart enough to plan trips around three day weekends to stretch my vacation days. And I always looked forward to my trips to Key West.

On December 31, 1986 I was stuck at the American Airlines terminal in Miami waiting to catch a plane to Key West. There was a horrible rainstorm and all flights were delayed or cancelled. American finally let one plane leave somewhere around 9:00 PM and I got on it. I arrived at the funky Key West International Airport without any baggage. It was late and there were only a couple of cabs at the airport. I shared a cab with 3 or 4 locals and I told the driver to "Take me to the Copa." Where else would you go without food or clothes on New Years Eve in Key West?

There is an over-supply of condos for sale just about everywhere these days. As a buyer you can buy a place at any destination you please and get a pretty good deal. But the point of buying a place ought not to be just buying to get a good deal. It ought to be about dream fulfillment. It took me about 8 years to finally buy my first place in Key West even though I made up my mind the first week I came here I wanted to live here. I just had to make certain that I got the very best price. And that stubbornness cost me so much money because of all the opportunities I missed.

During the past two decades two different condominium developments have helped buyers fulfill their dreams of owning a place in Key West. One is Shipyard in Truman Annex and the other is 1800 Atlantic. The Shipyard units are all basically 680 sq ft, 2 bedrooms and one bath condos in a quaint setting within walking distance to everything in Old Town. The price per sq ft was cheap when first built, but the amenities and location made the units very popular and that caused the prices to rise.

A mile or so to the south and east you will find the 1800 Atlantic Condominiums. Unlike Shipyard, they ain't quaint. The three buildings have a very modern facade made of reinforced concrete and glass. But once you go inside you understand why so many people have chosen 1800 Atlantic as a second home. Many of the units have a valuable transient rental license that permits owners to rent the units on a daily basis much like a hotel room. In reality the condos are typically rented on a weekly basis but not always for just one week. But it is the ability to rent the unit multiple times during the month that makes transient rental units very appealing to the buyer who wants the condo to help pay for itself.

It is legal to rent a condo at 1800 Atlantic as a vacation rental without a transient license, but the rental rules are different. Owners can only rent the unit once per month for a period of 28 days or less. Only one rental per month. That's it.

There are sixteen units available for purchase at this time. All of the units at 1800 Atlantic are about twice as large as those at Shipyard. The 1800 Atlantic units are all 1357 sq ft and have two bedrooms and two baths. The bedrooms are large. The living rooms and kitchens are large. Many have transient licenses. CLICK HERE to checkout the properties available. Look carefully because some units are actually located next door to each other so you can see a marked variation in pricing on some units. "Why is this?" you ask. The property is 20 years old and many of the units have not been updated with new kitchens or baths. Others have been. Look at the photos of the units and determine which looks better to you.

And of course there is the location issue. The complex looks like a big "U" with all units facing the Atlantic Ocean. The east side of Building "C" has units with view of Bertha Street and the ocean beyond. Units across the hall have courtyard views and the ocean. All units in the "B" building have straight one ocean views but those units sit furthest away from the ocean. Half the units in the "A" building have courtyard views and the other half view the mangroves and nature preserve on the west side of the building. And then there is the other issue of floor level. The higher floor, the more expensive the unit. The lower floors offer the same amenities and square footage as the upper floors, but the upper floors generally offer better views or more privacy.

Several of the units currently for sale CLICK HERE are Short Sales meaning that a short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. Some of the properties may be priced at about half of what they were sold for a few years ago during the market bubble. I doubt if any of the condos anywhere actually totally pay for themselves. But units that are properly managed and correctly priced ought to generate enough income to help make the purchase of a second home in Key West a possibility. If you do a Google search of 1800 Atlantic rentals you will see many companies and individuals with websites offering units. Prices for rentals vary somewhat based on unit location and condition and time of the year. I think many people return to the same location(and often the same unit) year after year because they know exactly what they are going to get. The best surprise is no surprise.

The photos show 1800 Atlantic at night with the ocean and full moon. Imagine, that could be your view. You could walk your dog or take your kids down to Smathers' Beach just east of the condo or down to the private beach at the condo itself. You could play tennis, go for a Jacuzzi, take a dip in the pool, get a tan, and have a bar-b-que without ever leaving your property. Some people like the tranquility of the ocean and save Old Town for limited visits. To each his own.

Remember I just changed offices. I am now at Preferred Properties Coastal Realty, Inc. If you would like to see any of the units at 1800 Atlantic or get more information on them, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Ocean Front Condo - Key West

Attention Maties! There is treasure to be found in this sweet listing of Unit 421 in the new Beachside Resort. People that read my blog know I don't just hype things. I try to get people to consider options when they are looking at purchasing a permanent home or a second home or income property in Key West. Not all jewels are located in Old Town. If you are looking for a condo with two transient licenses, this gem may pique your interest.

Here are the details: Unit 421 Beachside Resort is a 1357 sq ft a 2 Bedroom 2.5 Bath, type A floor plan with lockout feature & 2 transient licenses for optimal rental potential. All of the finest amenities including designer furniture package grace this 2nd floor luxury condominium situated in building 4 with a pool & courtyard view. Beautifully appointed floor plan with gourmet kitchen overlooking comfortable living room & spacious covered balcony. Endless on-site resort amenities include private beach, heated waterfront pool, spa, poolside bar & grill, valet parking, concierge, optional on-site management, gourmet restaurant & the island's largest conference center. CLICK HERE for more detailed info on Unit 421 and additional photos. CLICK HERE for info on the Beachside Resort. This website will draw heads to your beds, so it is important to see how well this property is marketed.

Unit 421 is priced at $699,000. That is $511 per sq ft. Experienced lookers know the price of everything in Key West. You know that $699,000 is an incredible price. But for those who are not so familiar with prices, CLICK HERE to see the list prices on the remaining units at Beachside. Unit 421 beats every property offered. When this unit sells, and it will, there will be no more priced like it. This is a deal limited to one buyer only. When it is sold, there will be no more--at that price. That does not mean the other units are priced too high. Every unit is different in size, layout, and location.

I suggest that seasoned shoppers look at this unit and compare what you will get for your dollar versus a similarly sized unit at 1800 Atlantic or a much small unit at Truman Annex that is priced similarly. There is no comparison. This property wins. True units at Truman Annex are very close to the rock and roll of Duval. And 1800 Atlantic has a loyal group of vacationers that return year after year. But Beachside is new and far from the madding crowd.

Would you like to see the Beachside Resort and test my theory of value? Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. This is an exceptional property at an exceptional price. Maybe you are the exceptional buyer who will grab this little gem.

July Sales in Key West

Some Realtors think we are at or near the bottom of the real estate market. I'm not so sure about that myself. I watch the new foreclosure filings every few days, and they are not stopping. Maybe there are not as many filings nor are they as fast as before. But there are still too many to think the foreclosure crisis is over in Key West.

Does that mean prices are going to go down more? I'm not so sure that will be the case across the broad market in Key West. Certain areas of town are just getting pummeled. Four examples include The Key West Golf Club, Solano Village, Las Salinas, and Salt Ponds.

New Town and Mid Town have 143 active single family listings. That is way too much inventory, and it probably means prices will come down even more.

The number of single family homes or condos in the Old Town area is scarce (only 89). The pickings are slim indeed. The prices on the few sales that have occurred have remained relatively stable. There are a few bank owned properties that have sold or that are under contract. I suspect that the sales of those properties may bring down the statistical averages for the Old Town segment of the market but not by much. I think the only properties for sale in Old Town right now are properties that need to be sold. One of the reasons that prices on Old Town homes got so high was their scarcity. That scarcity has not changed. The construction of new condos and town homes and the conversion of existing structures into condominiums in the Old Town area has pretty much dried up. (There are a couple of new properties, but you get the point.) My theory is that single family home owners are holding onto these scarce properties and are not panicking to sell. That could possibly happen in the future, but I doubt it.

The number of condos and town homes in Old Town is also limited. Truman Annex is a distinct market unto itself. I am seeing a deeper discount in the prices of condos and town homes in both areas. They are not maintaining their value as opposed to single family homes in the same areas. But their sales are not as depressed as condos on the east end of the island. The Old Town location wins over the burbs!

For the record there were 9 single family homes sales in Key West during July 2008 for a total sales volume of $12,341,000. The cheapest house sold for $330,000 (bank owned house on Eaton Street) and the most expensive was a historic landmark on William Street that went for $4,650,000. There were 11 condo and town home sales during this time period with the lowest going for $159,000 and the highest at only $1,150,000.

Sales of single family homes in July 2008 was better than July 2007. And July 2007 was better than July 2006. But if we go back to 2005 we see how much the market has declined since then. In July 2005 there were 19 single family home sales totaling $19,840,999. Single family home sales in 2008 are roughly 38% of what they were back then. Condo and town home sales totaled $10,990,100 in 2005 vs $4,730,500 this year for a 57% reduction. There were 8 condo and town home sales in July 2007 totaling $7,536,000 so sales on condos is worse this year over 2007.

There are buyers in Key West looking for bargains. They are looking for cheap. Those words are not synonymous. If you are serious about buying a house or condo you need to be ready to make a real offer that is "attractive" to the seller. The seller could be a distressed homeowner, an investor who needs to sell off some inventory to reduce mortgage payment obligations, or a bank asset manager looking to sell a foreclosed property. Give the seller a reason to look at the offer. Don't insult the seller with a price so low that it is not considered as serious. Make an all cash offer or get pre-qualified so that your offer does not have a huge financing contingency. In short, make your offer as clean and as simple as possible so that the only issue is boils down to how much money is paid and the date the deal is closed.

If you are a buyer and are looking for a deal in Old Town or nearby CLICK HERE and checkout the Key West Association of Realtors mls database. If you see a property you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. We may not be at the bottom of the market, but that doesn't mean you cannot get a good deal before prices go back up. Wouldn't you just hate yourself all over again if you waited too long for a second time and missed the opportunity to buy a piece of Paradise before they become unaffordable again.

Shipyard Units -- Key West

The Shipyard Condominiums in Truman Annex have become favorite entry level properties for second home purchasers in Key West.
Although the units were almost identical when constructed in the early 1990s, many have been remodeled or updated to accommodate usage as vacation rentals.

I created a list of the units available CLICK HERE. The list shows the size, amenities, price, and price per sq ft so that prospective buyers can make a quick comparison between the different properties.

Some of the units have a transient rental license that permits the rental of the unit on a daily basis as permitted by a newly adopted City Ordinance. But other units do not have that license. So if you are looking to purchase a unit that can be legally rented on a daily basis, pay careful attention to the details on each unit.

Several of the units are offered as possible short sales. A short sale occurs when a lender (bank or mortgage company) allows the property to be sold for less than the remaining balance on the mortgage loan. The asking price may be subject to negotiation and there is no assurance the lender will agree to accept any sum less than the total owed on the mortgage. But since there are so many properties in foreclosure across the nation, prospective buyers may want to consider purchasing such a property on the chance that they may buy the property at a somewhat discounted value. (Not all properties are shown to the public as short sales. So it may be necessary to consult with a Realtor to determine whether any particular unit is offered as a short sale.)

One particular condo you might want to consider is unit no. 194 which is located in the southeast corner of the development near the corner of Thomas and Petronia Streets. This unit was just reduced in price from $539,000 to $499,000 and it is offered fully furnished. The furnishings are especially nice. According to the listing agent, this ground floor unit has a good rental history. It does have the valuable transient rental license. CLICK HERE for additional info on unit no. 194.

I would caution any buyer of a condominium or town home in Key West or anywhere else to review the condo docs and the home owner association budget to make sure the association is well capitalized and able to carry out business functions in the future without the imposition of any special assessments. I am not suggesting that Shipyard or any other association is in financial danger. But I am saying buyers need to investigate the fiscal stability of any project in which they may become an owner.

If you want to see any of the units listed here, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Dream Fulfillment in Key West

Some people vacation in Key West year after year. They dream of buying a second home that they can rent as a transition to living in Key West as a full time resident.

The recent downturn in the real estate market has made achieving that dream more affordable and attainable. And many dreamers are actively looking to fulfill their dreams.

CLICK HERE to see four similar yet very different properties all near the Old Town area. The four units are similarly priced. You can see the price per sq ft on the right hand side of each listing. In the same area you will note the total square footage of each property. The two story town home at 606 Truman in Windward Park is more than twice as large as the condo at 120 Angela Street. But the Angela Street condo is absolutely adorable and can be purchased fully furnished. There are only four units at the Angela property, but there are 19 town homes at Windward Park. The recently renovated home turned condo at 912 James Street is one block walk to the Historic Key West Seaport. Two units constitute that condominium. The two story town home at 554 Porter Lane is located in Truman Annex and has a carport. There are 55 units in that development.

Please checkout the listings and if you see something that interests you, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. You may find a property that will make your dreams come true.

Six Months Sales Report for Key West

I've said before that I am no statistician. I did failed miserably in algebra. But I got an "A" by being able to distinguish "Up" from "Down".

I always go back to 2005 to use as a comparison point to current market activity. In 2005 there were 197 single family home sales in Key West (Key West to Shark Key) during the time period of January 1st to June 30th. The least expensive house sold for $200,000 and the most expensive went for $6,950,000. In 2008 there were 105 home sales with the least expensive selling at $210,000 and the highest going for $4,667,055. But the overall sales volume is the clear indicator of what is going on today. In 2005 single family home sales totaled $236,620,239 for the first six months. During the same period in 2008 the sales amounted to $91,786,605. If I did my math correctly that means that the 2008 single family home sales are down 61% from what they were in 2005. Ouch!

In 2005 there were 173 condo and town home sales between January 1st through June 30th with sales totaling $120,736,398. The cheapest unit sold for $160,300 and the most expensive sold for $2,300,000. During the same time frame in 2008 there were 75 such sales totaling $36,357,096. The least expensive unit sold for $114,484 and the most expensive went for $1,700,000. This is the really scary part: condo and town home sales are down 70% from what they were in 2005.

Our mls database doesn't distinguish between short sales and foreclosures from other "market" sales. I did a very quick scan and found 18 of the condo and town home sales during the first six months of 2008 were such sales or 24% of sales for that period. The bad thing I see from this is that those sales seem to be driving the market sales activity downward. If I am wrong,I am sure somebody will point out my erroneous conclusion.

There are 102 current residential listings (single family, duplex, and condo / town home) shown as contingent, contingent/kickout, or pending. Of those, 61 are short sales and 7 are bank owned foreclosures. That means 60% of our contingent and pending listings are distressed sales. Oh, there is one very opulent mansion under contract on Sunset Key that is listed at $5.1 million. The seller: The United States Government. I guess that could be classified as distressful!

A year ago today I wrote in this blog about where the market was at at that time. CLICK HERE to read what I wrote then.

The next three months are traditionally the worst. Town is hot, locals go away, not much sells. The hurricanes of 2005 and the market downturn have put a chilling effect on a traditionally down market. We shall see what happens this year.

My suggestion: if you are a seller and you don’t need to sell now don’t list your property for sale. If you must sell now, price it correctly. Don't tell your Realtor the sales price. Have the property appraised by a qualified independent appraiser. Then price it at appraised price. Don't play games. If you are a buyer, now may be a good time to buy. The market may not have totally bottomed, but good properties will get purchased before the dregs. Get the right property at a price you feel comfortable with. Do not buy cheap properties because they are cheap. You will regret it.

CLICK HERE to checkout the Key West mls database in real time. If you see some property that interests you, please contact me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com.

Bank Owned Condos in Key West

The good news is that there are only 14 active Bank Owned condos and town homes for sale in Key West. The bad news is that there are undoubtedly many more on the way. As of June 27, 2008 the Key West mls shows a total of 345 active condo and town home listings for Key West and Stock Island. I just went through the active listings one at a time (our mls programmer can't figure out how to search for short sale or bank owned properties as being different from non-distress listings). Most of the active listings are short sales followed by properties that are Realtor owned.

Here is an example of what I see that is bringing down the price of many condos and town homes. Unit "A" is a 2 bed 1 bath town home constructed in 1995 in a Planned Unit Development with all the frills. It was resold in January 2001 for $199,900. The post housing bubble occurred and property prices and property values rose through out Key West until the end of 2005 when the decline started. The same Unit "A" sold for 101.20% of its asking price ($415,000) in the year 2004 at $420,000. It was listed for sale in August 2007 at $335,000 and it was offered as a short sale. Unit "A" sold and closed on March 28,2008 for $275,000. In three years the property declined in value from $420,000 to $275,000 or about 35%. Many of the Units in the same development sold in 2005 at over $500,000. What happened to Unit "A" is a typical example of what happened across Key West. It is not the exception.

People who bought properties in the period between 2001 through 2005 paid market prices. Many obtained close to 100% financing. And for those that didn't get 100% financing, many financed their property acquisitions for less than a 20% down payment. The market declined and values fell. This decline created a disincentive to continue making mortgage payments on a property whose loan amount is higher than its value. So homeowners started walking away. In droves.

That is how I explain why the majority of condo and town homes being offered are short sales. I am betting that many of the short sales that do not get sold will become bank foreclosures.

Look at it a different way. Let's say you bought a town home in 2005 for $550,000. Your next door neighbor just sold the same size unit in the same condition as yours for $290,000. You were fortunate enough to have had $55,000 down payment so you only had to borrow $495,000. But now your home is only worth $290,000. What would you do? Think real hard for all of 10 seconds. That is why so many condo and town home owners are selling. There is no upside. At least in the short term. When the market stabilizes the people who buy right now will be looked upon as having been shrewd. That is unless the market goes down even more.

Don't buy somebody's problem. Buy an opportunity. Don't buy cheap because it is cheap. Buy good because the price is good. There is a difference. If you are looking to take advantage of the buying opportunities available in Key West please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. I'd be pleased to work with you.

The photos to the right were taken in Key West during the height of the Great Depression. Key West survived it and thrived. We will get over what is going on. There will always be a Key West. These prices won't last forever.
CLICK HERE to checkout the 14 Bank Owned Condos available for purchase in Key West.