If I lived here, I could be home now...

If I lived in Key West, I could be home now...
Ain't that the truth. The other day I wrote about the island running from the Gulf of Mexico to the Atlantic Ocean. So I decided to post a photo to prove it. The Gulf is at the top and the Atlantic is at the bottom of the pic. My office is located just to the top of the large white building in the middle next to the right side of the pic. That building is the old Gato Cigar Factory and is now part of Monroe County government offices.

The third photo is of the beach at the Casa Marina Resort. Locals go to the hotel for a variety of reasons including the annual 4th of July picnic and the Fantasy Fest Pet Parade. Both events are must dos if you live in Key West.

Key West is packed to the rim with lots of vacationers and attendees to the boat races. Our office (Dunaway McKenzie Realtors) is holding Open Houses tomorrow, from Noon -- 2:30 at the following locations: 612 and 616 Olivia, 1318 Duncan Street, and the Sea Isle Town Homes at 901 Windsor Lane. See photo at top right. The developer just reduced the price to $1,900,000 on these newly constructed and elegantly appointed 3 bedroom, 3 1/2 bath two-story town homes, each with its own private pool. Come see for yourself. If you lived here, you could be home now!

Things to do in Key West

Things to do in Key West

1. Go to the beach. We have a few. We just don't have a lot of sand or waves. But we have so much sun you don't mind laying on the rocks cause you can get a great suntan. Better yet, hangout at your guesthouse (or hotel) pool.

2. Go to Duval Street and walk up and down the longest street in America--it stretches from the Gulf of Mexico to the Atlantic Ocean. (That's about one mile in Key West.)

3. Go out to eat. We have some great restaurant like the Cafe Marquesa, Antonia's, and 915.
You can get a lot of reasonably priced and very good food at places like Caroline's (it's in the 300 block of Duval--try the cheeseburger) or TGI Fridays (in the Winn Dixie Shopping Center).

4. Go to Tropic Cinema (400 block of Eaton, just west of Duval) or the Regal Cinema (the Searstown shopping center).

5. Ride a bike and take a self-tour of the island. Obey the stop signs and don't aggravate locals by doing dumb things.

6. Visit the Key West Cemetery. Pics included to the right. One of the best streets in all of Key West is Carey Lane. There are 3 sweet little cottages that have been renovated. There are no Conch Trains or tour buses, no motorcycles or bicycle tours, heck, even a lot of locals don't know where the lane is located. But it is just steps away from the Key West cemetery. Take a left, walk a half a block and you are at the corner of Margaret and Southard. Three block to the north is the Key West Seaport and three blocks west is Duval. So close and so far.

7. Call Gary Thomas and buy a house. 1-877-778-7092.

Is the Island Surrounded by Water?

"Is the Island Surrounded by Water?"


I mentioned that I used to own Eaton Lodge Guesthouse and the question cited above is an actual question I got when a potential guest called to reserve a room.


Recently a friend from Atlanta asked me to pick-up a couple of his friends who were in Key West on a cruise ship and show them around Old Town. They asked how all the cars got here.

The answer to both questions is simple. Key West is a real island in the middle of the Atlantic Ocean (or sea or bay or whatever body of water you think). It is accessed by driving down U.S. 1 from Miami over a series of Keys ("cays" or islands) that are connected by bridges, the longest of which is the famous seven mile bridge. The other two means of getting here are via airplane or water.

Since we are surrounded by water, many potential home buyers think that they can purchase a waterfront home or condo. That's next to impossible on the Island of Key West. There are only a handful of properties actually on the water here and because of that, they are normally among the most expensive properties in Key West.

If a water view can be substituted for "waterfront", there are many more potential properties available. And if proximity to water is the criteria instead of "water view", the list becomes even wider.

During the past 5 years several new developments have been built with "water views" in Key West and on Stock Island, Key West's nearest neighbor. Most of these properties are condominiums and some even come with boat slips or having boat slips available. And because of the recent downturn in the real estate market these properties are priced more affordable than ever. The Impossible just became more affordable.

Checkout the above link to search for your new home in Key West-- water view or not and please give me a call (toll free) 1-877-295-7099.

616 Olivia Open House on Sunday

616 Olivia Street
Open House
Sunday
Noon - 2:30

Come join me on Sunday for an Open House at 616 Olivia Street in Old Town Key West. This elegant newly constructed (not renovated) home is located within walking distance to all that Key West has to offer, but far from the madding crowd.

The 2000 square foot home features 2 large bedrooms on the 2nd floor and a 3rd den/study/guest room on the 1st and 3 full baths. The master bedroom has a second floor covered balcony that runs the length of the house and overlooks the rear gardens and inviting pool. The interior floors are travertine marble and so are the covered front porch and rear lanai. There is crown molding and recessed lighting everywhere. The home is a GE Smart House.

So many homes in Old Town do not have parking, but this one trumps them all: it has covered parking and a door that allows you to enter into the kitchen. (That is a true novelty for Key West.) And the kitchen has everything as well: custom made cabinets, high end stainless steel appliances, professional range, wine cooler, marble, granite, you get the picture.

French doors across the entire rear of the house allow the descerning homeowner to enjoy the beautiful pool and garden views any time, day or night.

The 600 block of Olivia Street is particulary charming. To me it looks like Whisteria Lane--without the drama. Key West provides enough of that.

The home is offered at $2,300,000. Come take a peek.

Sweet William Transformation

Why Does Real Estate Cost So Much in Key West?

I was doing my morning internet surfing today and ran across this picture (bottom right) on flickr.com . The caption read: "This house is for sale by the famed Christie's Group. This 'Preferred Property' is about to fall down, which I found marvelous." That got me to thinking about discussing why housing in Key West costs so much and why the current downward turn benefits would-be buyers.
The house pictured was listed in July 2006 at $799,000. It is 1638 square feet on a 1959 square foot lot. There is off-street parking. And it was priced at appraised value at the time. The price has been dropped to $599,000. The good thing about this house is that it is in a good relatively good location in Old Town, but not the best. It obviously needs lots of work, but it does have the street appeal that makes it desirable.

The top four photos show a house in the 500 block of William Street as it looked a year ago and as it looks today. The restoration is almost complete. The tax records show that the existing house was 2827 square feet under roof. It looks like the square footage has been increased as the property was restored as well.

The property was sold a year ago for $1,225,000 and sold in January 2007 for $3,495,000 CASH.

The process of restoring a home in Old Town Key West is similar to any other town with an architectural review committee. The Historic Architectural Review Committee (HARC) controls that process in Key West. The City has a designated official that ensures that the city code is enforced with respect to all homes in the Historic District that are subject to the code.

HARC reviews all planned renovations, restorations, and even new construction in the Historic District to ensure that the historic character of the Old Town area is not diminished by new construction. It has strict guidelines that it jealously protects.

Old buildings such as the one pictured and chided as a "Preferred Property" cannot be torn down and rebuilt. Instead, buildings like this must be conserved and restored. Costs of such conservation and restoration often exceed the costs of normal new construction. The end result is that the cost of acquisition, planning, reconstruction, landscaping, etc. all add to the cost of the final home. But then the final home is often a work of art.

There are some great buys in Key West because of the market downturn. Prices will not stay at there current low rates and those people who buy now ought to reap great rewards in the future.

The Artist House Key West -- For Sale

The Artist House

Located at 534 Eaton Street, The Artist House has what other innkeepers
wish they had: a magnificently appointed and truly historic property.

This seven unit property is located one-half block off famous Duval Street on Eaton Street--old Key West's millionaires row. Eaton Street is one of two main corridors that bring traffic in to the Old Town area. So this is a very high visibility location and because of its innate beauty, attracts many would-be lodgers who failed to make reservations in advance or who mistakenly booked a room at a huge motel on Roosevelt Boulevard.

(I used to own Eaton Lodge at 511 Eaton Street. I know the guest house business and I know the value of owning a beautiful and historic property on that particular block.)

The property was the home of Dr. Thomas Otto and was named for his artist son, hence the name "The Artist House".

The rooms are large and most feature original fireplaces, crown molding, high baseboards, and period finishes that transport the lodger back to a grander era.

The Artist House is priced at $2,599,000. It has six licensed guest rooms. This beautiful property could be yours and you could fulfill your dreams of being the next Bob Newhart--but you would just be living in Paradise instead of New England.

More info: Please call Gary Thomas 1-305-766-2642

Why is now a great time to Buy in Key West?

Key West Cemetery










How many of you readers were buying tech stocks and every dot.com offering in the year 2000? What happened to your investment?

So many people took a bath when the market took a dive. But then that seems to always happen.

And how many of you readers rue the fact that you failed to buy the Conch Cottage when it was available for less than $100,000 and then $200,000 and later $500,000?

Prices on Conch Cottages and every other type home in Key West on an annual basis from 1993 onward until 2005. The market started to stagnate. Then Hurricane Wilma knocked the entire island for a loop. Prices then started to go down.

What makes a downward price market a "a great time to buy in Key West?" you ask.

Those that missed the opportunity the first time around can profit from their reluctance to part with their money.

I say that current sellers in Key West have 3 1/2 months left of prime selling time. The traditional selling season is Christmas until Easter and it coincides with the tourist season. Most hotels reduce their rates immediately after Easter because the high end tourists stop coming to Key West and we get a more economical crop of vacationers. And those vacationers are usually not looking to buy an expensive second home.

So now is the time for all serious sellers to get real in their pricing. And I think it is happening to some extent. More sellers are reducing their asking price because buyers are refusing to pay. Two years ago almost every home in Old Town was being offered at $1000 per square foot or more. Today, you can buy a nice home in Old Town with a small pool for $599,000 or less. 1110 Petronia Street was originally priced at $749,000 and now is $599,000.

There are numerous nice homes in Old Town priced in the $500-$600 per square foot. There won't be another Key West and they can't grow the existing one any bigger. So I recommend that buyers take advantage of the price slump and buy now. Even if you do not get the house you want for the very lowest price ever, getting the house you want in the location you want is easier now than it has been in years. Buy!

Oh, the reason for the photos of the Key West Cemetery. Some folks shy away from even considering buying a house with a view of the cemetery. I take the contrary opinion. The skies are bright, open and inviting. And the neighbors are quite quiet. No big structure is ever going to be built there to obstruct your view.

Cheeseburger in Paradise

Remember Jimmy Buffett's "Cheeseburger in Paradise"?

It was written about the cheeseburgers at the Dennis Pharmacy at 1229 Simonton Street--just two blocks from my office.

It's gone, at least for now. Dennis Pharmacy is being transformed into Marine Bank. Pics of Dennis Pharmacy in mid 2006 and this past week are attached for those who care.

There was a recent article in the Key West Citizen stating that the Dennis Pharmacy is looking for a new place of operation. Stay posted.

Real Estate Market Cycles--Key West

I am an attorney by profession and still maintain my license in my native Colorado. I worked for the largest bank in Colorado and did "commercial loan workouts"-- I managed the collection of problem loans, bankruptcies, litigation, and the sale of bank owned real estate.

Denver was a "boom town" in mid 1970s until 1982 or so. Then the oil market crashed and the boom went bust overnight. Property values plummeted and there was a glut of homes to sell. The economy was also paying the cost of the Viet Nam War. The Prime Rate went as high as 18% and that made the cost of permanent residential loans almost impossible for new homeowners.

I then went to work for the RTC-- Resolution Trust Corporation. The government agency set up clean up the savings and loan debacle. The real estate projects got larger and the associated legal problems more complex. The economy still had not healed and we had to work hard to sell huge volumes of real estate without giving it away. Although the RTC did give away a lot of its assets.

Since traveling to Key West for the first time in 1984 I watched as prices grew on an annual basis--usually beating the national rate of inflation. In the early 2000's the rate of increase approached 20 - 30% per year depending on the area of town. I wrongfully believed that Key West was immune from the economic woes of up north because of the scarcity of real estate, the limitation on constructing new real estate, the height restriction on buildings in Key West, and the fact that so many baby boomers are always looking to purchase a second home in Key West.

But Hurricane Wilma occurred and caused a lot of damage most of which has been repaired, but the fact that we got hit scarred some people. And others reacted to the slowdown up north and that translated in to a major correction in the real estate market in Key West. The amount of homes for sale went up, and number of sales went down. The sellers who were used to pushing buyers to the limit met their match. Buyers stopped buying unless they perceived the property to be a deal. The sellers that had to sell, dropped their price or the property did not sell. Many "sellers" took their property off the market hoping that prices would rise again.

I don't know where the market in Key West is going to go this year. The number of properties for sale is not as large as a year ago, and the prices have been lowered pretty much across the board. But some sellers still have unrealistic expectations about what their homes are worth.

Numerous writers have discussed the Real Estate Market Cycles. So I am not creating any new theory here. Depending on which writer you cite, there are between 6 to 13 events that make up a market cycle. Here are the basic six:

1. euphoria
2. denial
3. recognition
4. panic
5. hope
6. capitulation

As the number of foreclosures rise in Key West, I think it is safe to say that our market is at least in the "panic" phase and may have passed into the "hope" phase. Some sellers have reached the "capitulation" phase and dropped prices or taken other actions to try to minimize their losses.

I have advised sellers who had to sell to set a realistic price on their property. The internet has made it possible for people to see in real time unfiltered information as to what is available at what price and what similarly property recently sold for. Buyers have turned the tables on the sellers and buyers are now in control. So pricing correctly is necessary if a seller has to sell in the near term.

Likewise, I have advised buyers (and they are out there) that now is an excellent time to buy. Location is still the critical value when picking a property. But price is now almost as important. And the term "price" is more than the asking price. It includes other considerations that make a deal acceptable to a seller such as closing date or being able to pay cash and taking out the "financing contingency". More on that at a later date.

New Year's Eve Key West 2007

New Year's Eve at the 801.

Thousands lined Duval Street on New Years Eve. And yesterday, New Year's Day, the streets were bear. The weather was great,but I think many were in bed nursing their hangovers.