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.

Two-Fers on Peacon Lane - Old Town - Key West

There are two great houses on one of the best little lanes in Old Town Key West, Peacon Lane. Peacon Lane is only one block long and is situated between Elizabeth Street to the west and William to the east. It is a one way lane entered from Eaton Street and exits onto Caroline Street. The exit point delivers you right at the doorstep of the Historic Key West Seaport. Peacon Lane is a mix of a few large houses like the ones mentioned here today and several smaller cottages. Most of the houses have been gentrified but there are a couple of Conch and left-over hippie places as well. CLICK HERE to see one of my favorite Old Town houses that is located next to 315 Peacon Lane. And CLICK HERE to see the cottage on the otherside of 315 Peacon Lane. That's what makes lanes like this one so appealing. Diversity.

315 Peacon Lane is described by the listing Realtor this way:

"This Is A Must See To Believe! Beautifully Renovated Conch Home On Prestigious Peacon Lane. Open Floor Plan With Dade County Pine Walls And Floors Make Entertaining A Breeze. Large Designer Kitchen Featuring Granite Countertops, Stainless Sub-Zero Appliances, Wet Bar And Doors That Open To a Tropically Enclosed Garden Is To Die For! Three Bedrooms And Three Baths Including Master Suite With Large Walk-Out Balcony. Located On A Quiet, Quaint, One-Way Lane Yet Steps Away For The Waterfront, Shops, Restaurants, Duval Street. This is a potential short sale situation."

CLICK HERE to see some great photos of the house and more detailed information. This property is offered at the current asking price of $2,150,000 or $792 per sq ft. This property has been on the market for 579 days (366 plus 213).

Right across the street you will find 316 Peacon Lane that was listed just last week. It is offered at $1,600,000 or $789 per sq ft. The listing Realtor describes 316 Peacone Lane thus:

"Beautiful historic 2 story home completely renovated including a new 2 story addition. Detailed craftsmanship is evident throughout this home with hand sanded Dade Co. pine walls, pine floors, crown molding and intricate tile work. The entrance foyer leads to a showplace kitchen and great room with two sets of French doors to the backyard with pool. Also on the first floor is a large guest bedroom with ensuite bath and a powder room. The second floor has a generous sized guest bedroom with ensuite bath and a large master suite with beamed cathedral ceiling, French doors to a small balcony, and master bath with double sinks, tub and separate shower. Best location - walk to the historic seaport, Duval St, restaurants and shops."

CLICK HERE for more detailed information and photos of this great property. 316 Peacon Lane is not a short sale!

One of the things I really like about Old Town lanes is that most require that a person actually intends to go there. If you are zipping down Eaton Street in your car or scooter you will surely miss the only entrance unless you are looking for it. It comes and goes that quickly. The entrance is opposite the former Calvin Klein House on Eaton Street. Most people are so busy looking at that place that they miss Peacon Lane. I found THIS PHOTO of a friend, David Kaufelt, leading an expedition participants during the Key West Literary Seminar to explore Key West landmarks like the Calvin Klein House.

If you are looking for a large home in the Old Town area with character and location, please call me, Gary Thomas, at 305-766-2642 or e-mail me at kw1101v@aol.com to schedule a showing.

Her Dog Ate Her Homework & She Didn't Get the Memo!

One of the agents in my office has been working like a dog to sell a so-so property in a so-so location in Key West. The property is a short sale. The buyer and seller agreed to the price and my fellow agent has been shepherding the short sale through the Bank of America short sale service center.

A couple of days ago he received this e-missile from BofA:

"Hello,
I got the notes from customer service that you will not reduce the commission to 4%. I'm sorry but per our revised matrix this loan falls under the 4% commission. I am unable to give you anything more then that. We do not offer 6% commissions, the most we give out is 5% but this loan does not fall into that category. I'm very sorry, but please revise the HUD and send it in. If I don't receive it within 72 hours the correct way the file will be closed out for non compliance."

The average mls offer of compensation is 3% of the sales price to a buyer's agent. Sometimes the split is higher and sometimes it is lower. For the past few years many lenders have refused to pay the real estate commission offered in the mls offer of compensation and instead refused to approve short sales unless the commission was reduced to an amount lender was willing to pay.

The National Association of Realtors complained and in March 2009 Fannie Mae issued this directive to loan servicers (the companies that process loan payments and make decisions on the approval or disapproval of short sales):

Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.

Maybe the lady at BofA didn't get the memo that it is not okay to screw Realtors and threaten not to approve a short sale unless the Realtor take a cut of his commission so that BofA can repay the bank bailout money (and pay bonuses and retention payments to worthy employees). Or maybe BofA is so big that it doesn't have to obey any little policy.

I worked my rear end off last summer on a very difficult deal. Countrywide (now part of BofA) was the lender and it approved the short sale but only permitted a commission of $50,000 even though the earned commission was much higher. I've had similar situations with other lenders that demand Realtors share in the misery of a short sale by reducing their commission. The Fannie policy was supposed to address those wrongful practices and stop them.

I don't have a dog in the fight over my fellow agent's battle with BofA over the commission he earned but will not receive. But I know there are plenty of other agents that are experiencing the same treatment from BofA and other lenders every day. Some real smart trial lawyer is going to come along and create a class action lawsuit against the lenders and servicers that are violating the rules. I welcome that. In fact I have a lawyer I showed property to a few weeks ago that filed a very famous class action lawsuit. Are you reading this, Tom?

The Key West Bank Dick - Part Two

I've complained before that the Key West Association of Realtors mls database does not automatically show bank owned properties. Some Realtors believe that lender-owners do not want to disclose to the public that a bank owns a piece of property. I guess that is possible, but having worked in the Special Assets division of two banks, I know that we advertised we were selling bank foreclosures. There is a segment of the market that wants to buy bank foreclosures: they think they are going to get a deal. They have watched those late night infomercials on how to buy real estate in a down market.

I decided to do my best imitation of W.C. Fields as The Bank Dick and went through the mls database and found the properties CLICK HERE that are bank owned. These properties are primarily single family homes in Key West. A couple of the properties are very nice. So there may be a real bargain if you play your cards right. I suggest that you look at 3 Casa Roma Lane and 1710 Bahama Drive, both are water properties and are located in Key West.
If you are interested in MidTown CLICK HERE to see 1300 Ashby. It is a large house with 3 beds, 2 baths, on a large lot at only $309,000.

If you are looking for commercial property, CLICK HERE. There is a Duval Street Transient Licensed property ($4,300,000), a Stock Island multi-unit property (2,300,000), and a Key Largo commercial property ($3,300,000) that are each Bank Owned. Bank financing of these properties may be available.

Most of the bank owners periodically reduce the asking price on properties that do not sell. Some of these properties are getting stale. They have been on the market a long time and nobody wants them. A couple actually look pretty interesting. Checkout the list and if you see a property that you like, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Let me be your Bank Dick and let's find a deal.

Half-Price in Key West

I've noticed several "For Sale By Owner" signs in the area near the gym I go to. One caught my eye the other day and I decided to share two photos with you. See above.

My purpose is not to try to find a buyer for this property or to dissuade anyone from looking at it. I will tell you this much: the asking price on this 1254 sq ft house that sits on a large 7830 sq ft lot (90' x 87') is now $750,000 or one half the original price of $1,500,000.

I just did a quick search of other houses listed for sale in the Old Town, the Meadows, and the Casa Marina areas that are priced up to $750,000. CLICK HERE to view the list. (I did some "heavy" editing. There were 82 houses in this price range.)

You will note that there are two houses on the list (529 Olivia and 726 Fleming) that have valuable transient rental licenses. I wrote earlier at 715 Ashe Street. I think it could be a great house for somebody who wants a small project house. 407 Catherine is adorable and the owner is looking to sell it. 706 Chapman Lane is as cute as a button and has room for a pool. 1016 James Street is an eyebrow house that needs total renovation, but it has an existing out building and a large backyard which means this could be a great project house if you get it for a good price. 618 Petronia Street has a huge rear yard which opens the property to potential development possibilities. 723 Southard Street is a real sleeping beauty. 825 Southard Street is a great big old place that needs total redo, but it has strong bones and great curb appeal.

1009 Watson Rear sits behind other houses located on Watson Street. You cannot see the property. So it is really hidden. Livable as is, but it is not a protected house so it can be demolished and a new house built on this incredible lot. Easy to show and worth looking at. The house next door at 1007 Watson is a short sale. I think we should look at both houses at the same time. Bring your imagination.

719 Windsor Lane is the former home of writer John Hersey and is located in the Writer's Compound. I wrote about this house last year. CLICK HERE. I've shown the property several times, mostly to writers want to soak in the atmosphere that populates this compound. The owner sold the small cottage I mentioned in my earlier blog. So it is now time to sell the main house.

If any of these properties appeals to you, please call me, Gary Thomas, 305-766-2642 to schedule a showing. I don't think a property has be offered at half price to be considered a good deal.

The One that Got Away!

While searching for pics to help convey the sense of loss we feel when we realize we missed a great opportunity, I cam across a sad blog posting from a would-be buyer in The Hudson Valley. She said in part "THIS is the one that got away. This is the heartbreaker, the one I can’t stop thinking about, measuring all others against. “Another house will come along,” said the same person who told me there wasn’t anything on the North Fork of Long Island for under 300K. Well, there was, and it was a beaut, but I didn’t get there fast enough." CLICK HERE to read her lament in full.

I had a reader call me on Saturday. She wanted to see a house I mentioned here a while back. I called to set up a showing. It had gone under contract the prior afternoon and was not yet in the mls. Noteworthy? No. But more and more houses in the most desirable Key West locations are going under contract.

When I thought of the title "The One that Got Away!" I was thinking about houses, of course. I've had my share of properties I missed and regret some of them to this day. But don't fishermen lament the "big one" that got away? Don't lovers rue the one that got away? Don't athletes and fans alike cringe at the win that was lost by a fleet second? The ones that got away can haunt us all forever because we know that if we had only acted differently, the outcome (and maybe the rest of our lives) would be different and possibly better.

I did a quick search of the real Key West Association of Realtors mls database and found these properties CLICK HERE that went under contract since April 1, 2009. I know there are a lot of very savvy buyers that keep real good track of the status of our real estate inventory. They know how old and stale some listings have become. They know when a new property hits the mls sometimes more often than some Realtors. And they should appreciate the fact that the inventory of available properties is dwindling.

Here's my take on a couple of the houses in the list CLICK HERE: 711 Elizabeth was on the market forever and priced to high. New Realtor, new photos,new price, and it went under contract immediately. 1229 Florida offered forever until bank foreclosed; then new Realtor, new price and under contract over-night. 531 Olivia has been for sale "forever" and as luck would have it I had a buyer who wanted it the day after it went under contract. 1 Pinder Lane on the other hand was barely on the market for a day before it went under contract. The same is true for 1020 Southard, the Gingerbread man House (offered at $1,975,000). Under contract in one day. 929 United Street is one heck of an asking price at only $1,295,000. Somebody is getting one of the biggest deals of this market downturn. 1020 Von Phister is another sweet deal for an excellent house in an excellent location. I wrote earlier about 1209 White Street, a bank owned house for only $329,000. That house had already been partially redone and it had a huge side and rear yard awaiting a pool and garden. Another missed opportunity. And then there is the cute property at 811 Fleming where you could operate a little business and live up above like in the olden days. The house had room for a pool to boot. 1021 Johnson Street is another house that was listed and went under contract within a couple of days, asking price $1,995,000. That house was a bank foreclosure last year. Search my blog for it. Bought, fixed up, and put back on the market. And under contract right away. I told you folks it was a good deal last year. The big house on Noah Lane ($2,750,000) went under contract as well. So did the cute little cottage at 1018 Thompson Lane, also in my blog.

If you don't want to miss the opportunity to buy your place in Paradise before the number of available properties shrinks even more and prices start to rise (and they will), CLICK HERE to search the real Key West Association of Realtors mls database. No one will track your internet activity and no one will send you unsolicited emails. But if you see something you like, please consider contacting me, Gary Thomas, to assist you in buying a place in Paradise. You can find me at 305.766.2642 or email at kw1101v@aol.com.

Casa Marina - Short Sale - Do It Your Own Way

We are getting to a difficult point in real estate pricing in Key West. Many of the bargain properties are gone (not all). Many of the properties that remain are either located in bad locations (you decide what that means) or the properties seem over-price (we all know what that means).

I am fortunate enough to have some active buyers that want nice houses priced just under one million. They want a good neighborhood, good neighbors, and a very nice house. You would think for a million bucks that would be easy. It isn't. Not in Key West. That's not to say we can't make it happen, but there are not a lot of properties priced to sell at that magic number.

In the 1980's and 1990's industrious buyers sometimes bought neglected properties and renovated them to get exactly the kind of Key West treasure they wanted. As Key West became more popular and the price of real property increased, the cost of doing renovations became almost cost prohibitive.

There are individual properties in Old Town and Casa Marina that I think a serious buyer should consider as an option to buying a house already completely "done". I have said before on numerous occasions that people with nice houses who do not need to sell do not have their properties on the market. Those houses have not lost any value despite what is going on with their neighbors. They may have even benefited from real property tax adjustments downward. But the intrinsic value of their homes(short term and long term) has not diminished.

1316 Whalton Street is located between Seminary Street and South Street just one block west of White Street. I mention the location because many locals don't even know where Whalton is located. Think of it as Frances Street on the other side of Truman because that is what it is. CLICK HERE to read more info provided by the listing Realtor who describes the property this was: "Development opportunity in the Casa Marina district of Key West! Priced for only $520,000, this sale offers the rare opportunity to purchase 2 legal addresses that can be combined or redeveloped into separate properties. Complete working drawings are available for 2 luxurious 4 BR & 3 BA, 2200 sq. ft. custom homes. As an added bonus, according to public records, the lots are situated high atop an X500 zone presenting a preferred elevation. The existing property consists of a 2 BR & 1 BA cottage, a pool, garage & 1 BR & 1 BA apartment. This sale requires 3rd party approval by seller's lender, & all offers must be accompanied by a buyer's lender prequalification letter for financing or statement of assets for a cash purchase." This property is offered as a short sale at $520,000.

Here are some photos I took of the property. CLICK each photo: Livingroom, rear bedroom,two story rear house viewed from sideyard, pool, pool and two story rear house, neighbor to the south, neighbor to the rear on Grinnell Street. These houses can be demolished and one or two new houses built at this location. The property has been divided into two parcels, but the offering is for both properties as a single short sale purchase.

Just one block to the west is another short sale that is raring to be purchased. It is a development lot at 904 South Street in the Casa Marina area. The listing Realtor describes the property this way: "This is a fantastic build able lot with a Rogo in the heart of the Casa Marnia.HARC Approved plans for 2550 sq ft home including a pool and off street parking are available and will need recertification. This is a potential short sale." This lot is 5187 sq ft according to the information provided by listing Realtor. This short sale is listed at $350,000. It will not last long at this price. Better act quickly. CLICK HERE for more detailed listing information. Here are some additional photos, CLICK lot, lot, adjacent house to the east, and the house across the street.

If you are interested in a project property, please contact me, Gary Thomas, 305-766-2642 or email me at kw1101v@aol.com. I am a full time Realtor at Preferred Properties in Key West Florida. Our office is an affiliate of Christies Great Estates.

1119 Von Phister Sreet - Key West - Bank Owned

This foreclosure stuff is starting to get personal. Eight months ago a fellow Realtor got to help select my new neighbor by placing the house at 1119 Von Phister Street in the Casa Marina Area of Key West on the market. It is owned by a local Key West bank. You see I live right next door. The neighborhood is very nice and very quiet. There are no apartments or businesses nearby. Here are some photos of neighboring homes: CLICK, CLICK, CLICK, CLICK.

Let me tell you about 1119 Von Phister Street and why I think it is a great buy. And let me tell you about the neighborhood and why you might just want to live there.

The original house is constructed of Indian Blocks, a building material used in maybe 30 of the older homes in Key West. The man who owned the house before the last owner added room after room during a time when there either was no building code or there was no enforcement of building codes. The lot is huge and the house and the structures on the lot were many and very strange. That man passed away and when the most recent owners bought the house the additions and contraptions were removed. What was left was the core of the original house and a huge lot. Other than the exterior walls in the front, everything is new.

The renovation of the former house and the construction of the new additions was done with an unique style and a devotion to detail. Room after room feature unique woods, tiles, and decorative treatments. You will not find this home constructed with materials available at Home Depot or Lowes.

This is how the listing Realtor describes this house: "Exquisite residence in the Casa Marina neighborhood. This custom home is owned by a LOCAL bank. The original structure with Indian Block facade dates to 1943 and was recently remodeled/expanded. Many custom features make this 3 bedroom home unique. Custom kitchen flows into great room, covered porch, back deck and pool. First floor has great room, kitchen, living room, study (or bedroom), one bedroom, one full bath room, pantry, laundry room, computer nook, two half baths, covered front porch, covered back porch & covered car port. Second level has master bedroom, master bath, dressing room, 2nd bedroom, 2nd bath, office, covered porches front & back plus back balcony."

Click each word or phrase to see parts of this home: Greatroom -- Great room and dining alcove -- Kitchen -- Pool and rear deck -- Pool and spa -- View from second floor front balcony
-- Bath second floor front -- Master bedroom and sitting room -- View from master bedroom -- Master bedroom balcony -- Master bathroom -- First floor front bedroom -- First floor bath.

There is a huge old Mahogany tree at the front of 1119 Von Phister. I have one in front of my house and there are several others on our block. Many of the houses are quite old but renovated. The block looks stable, as in real people who take care of their homes live here. The house is a five minute walk or take a bike ride to the Atlantic Ocean and the beach. This is the real deal my friend. And the good thing is you won't have any sand in your feet by the time you walk back home. Of course you can ride your bike or drive your car or scooter.

You can also walk or bike over to Duval Street(5 minutes); or go down to the shops on White Street like Faustos or go to the Island Gym and watch me lift weights in the early morning (2 minutes): or you can grab a cafe con leche at any of the several neighborhood joints. You can be at the Historic Key West Seaport as fast on your bike as in your car (if you consider parking in your travel time) (5 minutes). And you can be in the Key West suburbs at the shopping centers or leave on a jet plane (we got 'em) at the Key West International Airport, all within a 5 minute drive from 1119 Von Phister. We don't have Conch Trains and motorcycles going through the area. We don't have noisy bars and noisy tourists walking home at four o'clock in the morning singing songs or arguing about how much they love or hate each other. We are so close to everything we all love about Key West, and yet so far away from the things we don't like.

There was a contract that unfortunately did not close. This property recently went back on the market as an "active" listing. The property is still offered at $1,895,000 or $616 per sq ft for this 3078 sq ft house under roof on a huge 5761 sq ft lot.

If you want to test me out as a potential neighbor and take a look at 1119 Von Phister, please call me, Gary Thomas, at 305-766-2642. CLICK HERE for more detailed information and photos of 1119 Von Phister Street.

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.

1015 Eaton Street - Old Town - Key West - Eyebrow House - Short Sale

So you have been coming to Key West for years and dream of "someday" moving here. You imagine what it would be like to get up in the morning and have coffee out by the pool under the palm trees listening to the birds cheep while you watch the butterflies flitter and the geckos dither. Maybe you love going over to the Green Parrot or down to Sloppy's and getting a little crazy and think to yourself, I could do that all the time. Or perhaps you dream of being able to do something adventurous like parasailing, snorkeling, biking, or canoing through the mangroves whenever you want.

You regret not having bought years earlier when prices were cheaper. You remember that special house you saw at a Sunday afternoon Open House and say to yourself "I should have bought that place." But you didn't.

CLICK HERE to do your own personal search of houses for sale in Key West. You set the price range and see what is available today. Tomorrow, surely one of two of the properties you see will be gone. I expect more new properties will be listed, especially condos and townhomes in on the eastern side of the island. But there is a limited amount of single family houses under a million bucks in the Old Town area.

1015 Eaton Street is listed as a short sale at the asking price of $995,000. This house is a classic eyebrow house that has been tastefully restored. It has four bedrooms, three bathrooms, a new addition at the back with a large great room and kitchen that open onto the long and inviting pool and spa. The living area has a fireplace for those two or three days a year there is a bit of a nip in the Key West air. The great room doors open accordion style so that the entire outside becomes part of the inside. The master bed and bath are on the ground floor. The bath opens onto the spa making a late night dip just too inviting. And if you have looked at eyebrows before and been disappointed by "dinky" bedrooms, look at this house. The bedrooms are large and the ceilings tall. That means those rooms are actually livable. A claim not all eyebrows can make.

1015 Eaton Street is a listing of Preferred Properties Coastal Realty Inc. While this is not my listing, I hosted an Open House there and have spent enough time there to get a real feel for the house. I loved it. The kitchen and baths are new so you won't feel like you are roughing it like you might in many old Key West houses. The bedrooms are good sized so you have more room than to crawl into a bed. If you have looked at other eyebrow houses you know what I mean. But the really neat feature is the way that the back end of the house totally opens onto the pool area. You move to Key West to enjoy the outside. And the outside here is just wonderful. The one thing this house does not have is off street parking. If this were to be your second home, you can easily store your Key West car in the public garage which is one block away. (I believe the monthly storage fee there is $100.)

CLICK HERE to see more photos and read the detailed information on 1015 Eaton Street. This house is a short sale that is offered at $995,000 or $573 per sq ft. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com if you would like to schedule a showing of this classic Key West Old Town property.

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.

The End is Near!

The End is Near! At least it is for the small eyebrow house at 405 Frances Street in Old Town Key West. No, the house is not going to be torn down, but after months of being on the market, a contract has been signed and the owners and buyers await the closing on the transaction. CLICK HERE to see the particulars on this old house.

The house on Frances Street is quite similar to many other Old Town homes that have been lived in by generations of Key West residents. A few houses in similar condition are still available for purchase. And you might be surprised to read that there are buyers looking to purchase old relics like Frances Street. All of the Old Town houses are in the Key West Historic District so the rules of the Key West Historical Architectural Review Commission ("HARC")will apply. CLICK HERE to read and download the HARC Rules. If you are thinking of buying any house in Old Town, you really need to know the general intent of the rules.

Some of the more valuable houses in Key West once looked something like 405 Frances Street to some extent. When I show old houses to prospective buyers I suggest that they forget about the often cramped interiors and take a different approach. I suggest that buyers look at buying the house as a box with no inside walls. Let the designer or architect rebuild the house utilizing the existing exterior walls and maybe add an addition to the rear or side, HARC permission required. Existing walls go away and new functional living spaces emerge. The look from the street hides the new functionality at the rear.

People who buy old houses in Key West are basically buying a look, a lot, and a location. If the buyer is lucky, the buyer gets a nice looking old house, a decent sized lot, and a suitable location. We all know certain locations suck. We know certain lots are tiny. And certain houses are just plain ugly. 405 Frances is cute and has a great location, but the lot is tiny. So the buyer gets two of three. That's not bad.

I created a list of active houses in Old Town that I think might make for good renovation projects. Some of these properties have been on the market for a long time. Some may not be in good condition--the kind where a buyer would feel comfortable moving right in and sleeping and eating. Some may still seem to be priced very high given their condition. I would simply suggest that buyers take a look at the house CLICK HERE for a late addition: 630 Elizabeth Street just went back on the market. It is bank owned and it would make a great remodel project.

CLICK HERE to see the houses that I think might make for good renovation projects. It is my subject opinion. The only caveat I would add is not to let the asking price dissuade you from considering the individual properties. I think deals can still be made in this tight market. Some of the houses listed have very inflated asking prices in my opinion. The sellers either are living in La-La Land or they are just waiting to get an offer and think they will negotiate.

If you are one of the many buyers who has postponed making an offer on a second home in Key West and continue to hold to the belief that prices will continue to drop, I would simply urge you not to wait too long. The end of the down market is near. The supply of houses is drying up. The supply of houses in Old Town is really drying up.

More on the current market tomorrow. If you see something you like, 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, an affiliate of Christies Great Estates.

726 Fleming Street - Old Town - Key West - Transient License

There is a new listing at 726 Fleming Street in the very heart of Old Town Key West that may interest you second home buyers that want a place you can rent to help pay part of the cost to buy the place. The listing agent, who is not located in Key West, and so far has not complied with our listing requirements and supplied any photos of the property, says this about the property: "LOCATED IN THE HEART OF KEY WEST!! THIS 2 BEDROOM, 2 BATHROOM BUNGALOW WITH HIGH CEILINGS HAS ONE OF THE FEW TRANSIENT RENTAL LICENSES!! DO NOT MISS THE OPPORTUNITY TO OWN THIS SPECIAL PROPERTY. NO NEED TO HAVE A CAR, WALK TO EVERYTHING! PRICED TO SELL." CLICK HERE to see all of the agent supplied information.

726 Fleming Street is located one house to the east of Love Lane. Love Lane is situated east of the Monroe County Library at the corner of Elizabeth and Fleming Streets. William Street is just about 125 feet east of the property. If you are familiar with those landmarks, you have a pretty good idea of the location. If you remember the house that was the subject of the This Old House renovation a few years back, 726 Fleming is right across the street to the south.

According to the listing agent, 726 Fleming Street is 792 sq. ft and sits on 1743 sq ft. lot. The asking price is $595,000 or $751 per sq ft. I have not been inside, but the house looks tidy from the street. You cannot beat the location. And the existence of a transient license which permits the owner to rent the property just like a hotel room for 365 days per year is a genuine bonus.

Please call me to see if this property meets your needs in a second home in Key West. Please call me, Gary Thomas, 305.766.2642 to schedule a showing. I took some potential buyers past the house yesterday afternoon and there were people looking at that time even though there is no for sale sign on the property or photos in the mls.
This property probably will not last the week.So you better move quickly.

6 Havana Lane Old Town Key West - Short Sale

This week the Obama Administration opened the door to travel to Havana just a bit. I'm thinking it's going to open pretty wide fairly soon. I think such a move will be positive for both Americans and Cubans. The exchange of commerce and ideas doesn't hurt anybody. Key West already has a brisk tourist trade by ferry from Ft. Myers. I assume there will probably be a similar Key West-Havana connection not to far into the future. But I have a better idea: buy a vacation retreat at 6 Havana Lane in Old Town Key West. Forget the 90 miles to Cuba bit. It's less than a 9 minute walk to Duval Street where you are still (technically) in the United States, most people here speak English (except at the Winn Dixie checkout register), and the American dollar is still accepted.

This is how the listing Realtor describes 6 Havana Lane in Old Town Key West: "This Conch style home in the heart of Old Town Key West has been beautifully renovated from top to bottom. Step behind the front door into a private oasis complete with a heated swimming pool and three - yes that's correct - three off street parking spaces. Immaculate home with Central air conditioning, updated kitchen, and three bedrooms. The third bedroom is located on the second floor with its own private bath making this the ideal guest suite. French doors on the first floor in the kitchen and living room open to covered porches leading to the private courtyard. All just steps from world famous Duval Street, shopping and restaurants."

6 Havana Lane is located in the southeast part of Old Town near the corners of Truman Avenue and White Street--just about 1/1 block to the west. It's near Truman but not on Truman. If you blink when you are driving on Truman, you'll miss the turn. That means few tourists will be riding down the street and certainly you'll never see a Conch Train.

The county records show that this two building property only has 1021 sq ft of living space and that there are 3 bedrooms and 2 baths. The lot is 2915 sq ft per the tax roll.

6 Havana Lane was recently converted to a Short Sale. The asking price was reduced from $869,000 to $699,000 or $685 per sq ft.

If you are looking for a Key West retreat and are among those that feel now is the time to buy before prices start to go back up, you may want to take a look at this property. Please call me, Gary Thomas, 305.766.2642 to schedule a showing.

Oh, if you think the price is too high, consider this: another realtor listed 1020 Southard Street a couple of days ago. It was listed for sale at $1,975,000 or $670 per sq ft. It is now under contract. In less than 3 days.

Quit Your Job, Move to Key West, and Become an "I Used to Be"

I sometimes tell people that I used to an attorney. Sometimes I tell them I used to do commercial loan workouts for banks. And sometimes I tell them I used to work for the Resolution Trust Corporation - the former government agency that got us through the last financial crisis. Last week the owner of my gym, Sam, and I were talking about some locals and he referred to them as "I used to Be's." "What?" I asked. He said just about everybody that moves to Key West "used to be" something more important where they came from. They came to Key West to live their lives and took up jobs that were either more fun, more fulfilling, or maybe jobs that just kept them busy so they could live life in Key West. Like death and taxes, living life in Key West beats the alternative.

After I moved here I met all kinds of people that had exciting former lives up north in America. If you have been thinking of moving to Key West and can't figure out how to do it, the little deli at 811 Fleming Street may be your ticket to life in Key West. 811 Fleming Street is a commercial property downstairs that has a lovely second floor owner's apartment. The lot is 23.75' wide and 100' deep. I think there is room for a pool behind the property. That's another issue for another day.

This is how the listing Realtor describes this property: "Fantastic Opportunity to own a commercial property and a money making business with a fabulous second story apartment in a great location. Flexible zoning allows for many uses while the property is situated in one of the best neighborhoods the island has to offer. The property has undergone many recent upgrades, including a full renovation of the one bedroom and one bathroom apartment. Parcel offers a deep lot and generous backyard to be used in conjunction with a commercial or residential use. Takeover and expand the existing convenience store/deli, Flora and Flipp, or bring your own ideas to the table!"

CLICK HERE to read more detailed information on this 1372 sq ft two story building located on a 2323 sq ft lot right smack dab in the middle of guest house row in Old Town Key West. Located on just this block are Equator Resort, Oasis Guest House, Curry House, Coconut Grove Guest House, and Coral Tree Inn. CLICK HERE to read about why one writer calls this block "the gayest street America". I've stayed in the guest houses there. And there are numerous other guest houses within a three block radius. Before moving to Key West I stayed at the Oasis several times and remember going to the deli to buy sandwiches so I could run back to the pool and get my take-home tan.

I am a firm believer in the theory of relativity when it comes to the denizens of guest house row: the place relatively close to the guest house is more likely to get their business than the place further away. Why walk a mile when you can walk a block and get exactly what you want. There is a captive audience in that location.

If you are thinking of running away to Paradise and want to look for a place to live and or work, please think of using me as your Realtor. I am a full time Realtor at Preferred Properties Coastal Realty Inc. I left reality 15 years ago, moved to Key West, and I have never regretted it. Please call me, Gary Thomas, 305.766.2642, or e-mail me at kw1101v@aol.com You, too, can tell your friends "I used to be...."

730 Fleming Street- Old Town - Key West

If you read my blog regularly you know I'm really fond of William Street and Fleming Street. Well, the house at 730 Fleming Street CLICK HERE sits at the axis of both streets. So it enjoys a really great Old Town location just right for being close to everything. The front porch is also a great site to sit and watch the world go by. CLICK HERE to see a photo of the house from the 1970's. Hasn't changed. That's the beauty of old houses in Key West.

The property at 730 Fleming Street is currently listed for sale at the asking price of $1,050,000 or $500 per sq ft. The listing Realtor describes the property this way: "On the corner of Fleming and William Streets in the Heart of Old Town. Two homes totaling five bedrooms and three baths. The main house has four bedrooms and two baths, wood floors and walls, central a/c and a great room overlooking the beautiful gardens with room for a pool. The guest cottage has one bedroom and one bath plus a loft and its own private patio area. Off-street parking. Plans for renovation are available from one of Key West's award winning architects." There is a total of 2100 sq ft of living space on a 5112 (76' x 67') lot. You can't beat that location or the simple charm of this classic property.

I did a quick sampling of houses on Fleming Street and this house is the least expensive on a price per sq ft basis.

If you are thinking of buying a second home and like the Old Town area, please give me, Gary Thomas, a call at 305-766-2642. Let's take a look at this old house and see if it works for you. Add a pool and you may have the home of your dreams.

Really Big - Short Sale - Key West

There is a really big short sale at 1418 Leon Street in the eastern section of the Casa Marina area of Key West. For the reader unfamiliar with the area, this house is located just north of Flagler Avenue and just east of White Street. It is a very short distance to the beaches to the south, Old Town to the north and west, and the shopping centers and airport to the east.

This is how the listing Realtor describes 1418 Leon Street: "Elegant & Luxurious Architect's Dream Home in the quiet and exclusive Casa Marina East neighborhood of Key West. Designed by award- winning, nationally acclaimed architect Michael Miller. Top quality finishes including American cherry wood floors, custom moldings, and dramatic marble floored entry. High ceilings, designer kitchen, bright and open floor plan flows to large Lanai with lush tropical gardens, large flagstone terrace and an inviting heated pool with waterfall. Private guest cottage and second floor bonus room add to privacy and comfort. Off-street parking for 2 vehicles. Widows walk with tree-top view and romantic sunsets. An Exquisite Property Showcasing the Best of Island Living. Short sale subject to lender approval."

This home is listed at the asking price of $1,995,000 or $663 per sq ft for the 3007 sq ft house. It sits on a large 6334 sq ft lot. (The property was originally listed for $3.6 million.) CLICK HERE to read more detailed information on this listing and view some great photos that show the features of this remarkable property.

I realize (sadly) that there are not a lot of buyers for a house in this price range. But for those of you that can swing a deal like this: listen up. The lender on this property is local. I expect that the local lender would be able to respond to a serious offer promptly and without all that fuss and delay we have heard so much about.

This property really is a big deal. If you are in the market for a great Key West property is a very comfortable location and you have the cash to make a significant purchase, please call me, Gary Thomas, 305-766-2642 to schedule a showing. This is not my listing, but I know how to get you in the door. If you are looking for a place in Key West, but maybe not as large a place as this, CLICK HERE to search the real Key West Association of Realtors mls database. No one will call you and no one will track your whereabouts on the Internet. If you see something you like, send me an email at kw1101v@aol.com and let me know if I can help you buy a place in Paradise.