723 Catherine St, Key West, FL

I showed the truly unique home at 723 Catherine Street last week, and I was amazed by the property. There is not another home like it in Key West. It is truly one of a kind.

From a bottling plant to a contemporary gem, this former cola bottling plant was converted in 1995 into a spacious, open, modern home and is a recipient of the prestigious Ceramic Star for Architectural Preservation Excellence. Lush gardens surround a beautiful pool with a waterfall, an outdoor shower and a large poolside loggia that is great for dining and entertaining. High privacy walls insure peace and quiet. There are three large bedrooms and two and a half baths equipped with elegant modern fixtures. Inside the ceilings soar in the first floor living areas. The gourmet kitchen opens over a breakfast bar to the great room. This property is in the low-flood-hazard x zone.

This home has 2356 sq ft of living space and sits on a 3939 sq ft lot. It was originally offered at $1,500,000, but is now listed at $1,249,000 or $530 per sq ft.
The property definitely has a New York loft type of feel to me. The building is concrete and the floors are decorative concrete. Even though the walls and floors and glass are hard surfaces, the house does not give off what I'll call hard vibes. The simple lines, warm colors, high ceilings, and spacious rooms make this home inviting, not harsh. The open courtyards and pool off the living areas remind you right away that you are not on the Isle of Manhattan but the Island of Key West instead.

This house had been on the market for quite a while and the price reflects both the difficult real estate market in general and the locational issues peculiar to this house. It is located across the street from the Suburban Propane tank farm and offices. There is a trailer court nearby and most of the neighboring homes are not priced as high. Plus the house is not your traditional Conch house. So those factors have had an impact on the pricing and they limit the universe of potential buyers. But for the buyer who wants value and size and a great place to display art, this is the place you need to see.

CLICK HERE to read more about 723 Catherine Street and view more pics. Then if you are really interested, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw11101v@aol.com to schedule a showing.

Season's Beatings!

Season's Beatings! may be a little extreme for a title, but it may help entice you to read about how the Key West real estate market fared so far this Season. Season is 2/3 over. Two months down and one to go. Then the buyers go back up north to live in the smoke and smog until next year. Sure we will continue to have lots of people who come to Key West after Easter (March 23 this year). But those visitors are usually cheap Floridians and or economical European tourists who come to enjoy the great Key West weather at discounted prices. The people who come after Season are usually not looking to buy but instead are looking for vacation deals. That means there are just 23 days left to determine how big a beating our real estate market endured.

Below you will find the Key West single family and condo sales results for the month of February for the years 2005, 2006, 2007, and 2008.

In 2005 (the year the bubble burst) there were 26 single family homes sales in Key West totaling $31,613,934. The least expensive was $545,000 that sold in 5 days. The median was $970,000, and the largest was a 6 bedroom home that sold for $4,300,000.

Condo sales for 2005 were thus: 27 sales totaling $18,176,750. The least expensive unit sold for $400,000, the median was $575,000, and the big boy condo went for $2,225,000.

There were 17 single family home sales in 2006 totaling $17,630,200. The cheapest was $450,00 and the most expensive was $$3,775,000 that originally listed at $4.2 million.

There were 12 condo sales during this period with the least expensive going for $295,000. The median sale was $602,500 and the most expensive was $2,000,000.


In 2007 there were 20 single family sales totaling $22,514,349. The least expensive was a single family that sold for $420,000, the median was priced at $1,125,717 and the most expensive sold for $5,800,000. There were only 7 condo sales during this period. The lest expensive was $245,000, median was $365,000 and the most expensive was a disappointing $830,000.

I can say that there were 8 single family homes totaling $7,817,000 since February 1, 2008. The least expensive house sold for $ There were two good upper end sales as well: one for $2 million and the other for $3 million. The median priced home sale was $541,500.

And February 2008 brought 8 condos sold. The least expensive unit sold for $235,000, the median sold for $402,000, and the most expensive sold at $1,649,000. (That was a resale at the Hyatt Beach Club.)

There has been a flurry of contracting activity during the past 29 days. There are currently 59 properties that are contingent (awaiting inspection, appraisal, survey, loan approval, etc.) and 27 that are shown as pending (contingencies have been cleared and property is prepared to close). All of the Realtors I have talked to are busy and are now writing contracts. And some are being accepted. The less expensive properties are outselling the more expensive, but some expensive properties are selling as well.

There are a couple of Old School Realtors that finally got the message that the market of 2005 is history. They have finally started to reduce the asking prices on properties that were very overpriced. Most of the sales that have occurred are a result price reduction. There is still a hesitance by many buyers who think the market will fall further, especially after Season ends. I agree. But bargain hunters may miss getting the plum properties just to save money. Homes in Key West are not like fungible goods. They are unique. So the smart buyers are buy location and value at a good price. Some people may make good money buying what is leftover at the end of the day. But leftovers are just that. You get what you get.

Look for more price reductions during the next couple of weeks as some sellers try to entice reluctant buyers to act now. Sellers who do not need to sell may not respond to low-ball offers. I wouldn't. Why tell some would-be moron buyer your bottom line if he is not willing to tell you what he really is willing to pay? But sellers who need to sell or who must sell must expect the worst. When the buyers leave, the party is over till next year. Want to buy? Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

831 Johnson Lane Old Town Key West, Fl

Are you tired of everything being just perfect? Everything "Up to the minute"? Want to go back to a quieter, gentler time when time did not matter? When perfect was not de rigeur?

When you open the white picket fence and cross the threshold at 831 Johnson Lane in Old Town, Key West you pass gently into such a place and time. It is magical.

The house at 831 Johnson Lane is actually a combination of three separate buildings plus a couple of out buildings. All of the living areas open onto the rear pool and gardens. And by "gardens" I mean gardens plural. There is a 33' lap pool framed by palms and orchids and myriad of other plants and trees. The buildings provide shelter from the elements, but it is the elements that make this house so inviting because the outside is a part of the inside. The living areas have vaulted ceilings and the walls are works of art in themselves. The Dade County Pine walls and ceilings have been artistically enhanced and the result is inspiring.

The tones and colors and textures compliment each other and blend so well with the environment. The rooms are built to human scale, so you won't feel like you are rambling around some big bawdy warehouse. But you also will not feel cramped. The rooms are proportional. The two bed two bath main house with an 11' x 11' studio was renovated within the past 5 years. The house and cottage provide 1977 sq ft of living space. And there are two off street parking spaces. There is a separate 780 sq ft artist studio with its own vaulted ceiling and bath. There are two wells to provide additional water for the gardens. You get all of this for $1,195,000 or $604 per sq ft. You can look around this island and find a lot less for a lot more. CLICK HERE for more info and photos.

I really don't think the cute will ever wear out on this place. It reminds me so much of what so many Key West properties used to be before so many got all gentrified. This little place is fine just as is. Want to see it? Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

5 Hunts Lane Old Town Key West, Florida

Are you one of those adventurous sorts that feels the need to leave your mark for posterity? Do you want to be the next Norm Abrams and redo a historic Key West home?
Well this little home at 5 Hunts Lane may be your dream project.

Here's the skinny. The house is located on Hunts Lane which is on the north side of Southard Street midway between Grinnell and Margaret Streets. Five Brothers is located at the corner of Grinnell and Mangia Mangia is located at the corner of Margaret. So you can walk to get your morning jolt of Cuban Con Leche and your evening fill of pasta and never walk more than 200 feet. But you are only a couple blocks from Duval to the west or the Historic Key West Seaport to the north.

The house has been in the same family since it was built around 100 years ago. The last owner occupant is in his early 90s and recently moved to mid Florida to live with relatives. The house is one of the more primitive homes in Key West. And I say that nicely.

The house was remodeled in the 1950s when a second floor and indoor plumbing was added. Those additions could make for some interesting expansions to the house. Since the house is in HARC a buyer will need to get HARC approval for changes, but I think a new owner with good "vision" and a local architect could find a way to convert the 1950's downstairs bath into a new stairway to the second floor. That would permit better usage of the 3 downstairs rooms and the elimination of the current interior stairway.

The second floor is quite tall and could be vaulted to provide a very dramatic ceiling. There are 3 good sized rooms that could be made much more user friendly. The views (and quiet) are quite pleasing. The rear of the property could be improved immensely. No room for a pool without a variance which I think is unlikely. But perhaps not impossible. But there is room for a nice rear living area, deck, and landscaping.

Renovation costs have dropped a bit so this is a project that might fit into your budget now more than it may have at an earlier time. The house is 1210 sf ft and is priced at $409,000 or only $338 per sq ft. That price is down from the original $499,000. If you spent $100,000 on renovations (which I think would be overdoing it, but what do I know?), you could be into this house for around $500,000. Just think about it: a six room house in the heart of Old Town for about $500,000. CLICK HERE for additional info and listing realtor's photos of the house and yard.

Here are some more pics that I recently took. The house was not "staged". This is the way the owner left the property. It just shouts Quaint!. The Dracula's Closets in two of the upstairs bedrooms. The lamp table in the front bedroom. The high ceilings and Dade County Pine walls in the middle bedroom (and throughout the house as well).

If that sounds interesting, please call me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com to schedule a showing. The house is vacant and relatively easy to show, but advance notice is required.

1411 Pine Street Key West, Fl

1411 Pine Street is a 2532 sq ft home recently built (2000) in the highly desirable The Meadows Area of Key West. The home 4 bedrooms and 4 baths, gracious interiors, high ceilings, beautiful warm interior finishes that include Brazilian cherry floors, a traditional staircase with walnut newel and rail, cherry cabinets, and granite counters throughout. At the rear there is a covered veranda that overlooks the secluded garden with heated pool. There is off-street parking for 2 cars.

The home was designed by noted Key West architect Tom Pope who also did the Marquesa Hotel and other notable commercial and residential properties. One word describes this home: sophisticated.

CLICK HERE for more photos and detailed information on this property. It is offered at the price of $2,950,000 or $1165 per sq ft. I would love to show this house to a buyer looking for a genuine quality home in Key West. This is one instance where the high price per sq ft is actually reasonable. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

The Value of Location

Way back in 2003 or 2004 I worked with one of the Key West real estate stars. She had a listing on White Street one half block south of Truman. The house had been totally redone. Three bedrooms, 3 1/2 baths, stainless steel appliances, granite, higher end kitchen cabinets, new3/4 inch solid maple wood floors, pool, and off-street parking. It was listed at $595,000. I hosted Open Houses there for weeks and weeks. I got business off the open houses, but no one would buy it. The feed back I got was that the house was great, but prospective buyers did not want to own a house in Bahama Village. I explained that the same house three bocks to the east would cost $300,000 more. And that is where people were buying homes, not in Bahama Village. Finally, the owner furnished the house and reduced the asking price to $500,000 during a rising market. It sold that same week.


My current office had a listing on 908-1 Terry Lane in 2005. That house and the one next door at 908-2 Terry Lane were basically identical. Our listing was priced at $1,850,000. The Historic Key West Lighthouse is located on just the other side of the lane. The lane runs north and south from Truman down to Petronia--two blocks only. Neither house sold and the owners went through a series of real estate agents in attempts to sell the spec houses.

The house at 908-2 Terry Lane just got listed again. Here are the details according to the listing Realtor: Newly constructed home that was built to the most current codes and finished with the finest materials inside and out! The minute that you look around this fantastic Old Town property you will be sure to notice the beautiful oak and slate flooring, top of line kitchen with granite counters, wood cabinets and professional series appliances. Luxury and function prevail throughout this incredible home with many thoughtful details, such as built in Yamo sound system, custom closets, Anderson doors and storm protection with hurricane windows and shutters. Custom built home situated on a quiet Old Town lane in a growing neighborhood that has been undergoing many recent changes and improvements. Walking distance to all that Key West has to offer!

The view from the second floor front balcony of the lighthouse is quite magnificent. The great room and kitchen open onto the pool and the rear garden area. The house has everything a prospectiv homeowner wants in a Key West home. The house is now listed at $995,000 or $711 per sq ft.

This property is now available for almost half of the original asking price back in 2005. If the property is purchased this go around, the buyer will get a very well built home with a terrific view at a good price. The negative aspects of owning a house in Bahama Village are changing. The City of Key West is redeveloping the huge tract of ground west of Truman Annex that was given to the City by the US Navy. That project will take several years to complete, but when it is finished the impact on the immediate area and the entire city ought to be as dramatic as the transformation of the Truman Annex property was 20 years ago.

I think properties in Bahama Village are undervalued. And I think the house at 908-2 Terry Lane is specifically undervalued.

CLICK HERE for more info and photos of the house. Want to see it, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

1119 Olivia Street Old Town Key West -- Steal This House

The little house at 1119 Olivia Street in Old Town Key West has just been reduced to $585,000 from its original price of $1,275,000 in March 2007. Half Price! Too bad it wasn't worth the original asking price, however. The property is owned and listed by a Realtor--not me. Thank God. But he must disclose that to the public. Please don't take these comments on my part as being negative. But you need to know the facts when you invest your money in property. Especially now!

This is an excellent opportunity to own your own Conch home located in Old Town. The home at 1119 Olivia Street was completely renovated in 2005. The property is Located in the X flood zone and sustained no damage in any of the hurricanes. A true high and dry property. Some of the features include: 2 licensed residential units, 2 off-street bricked parking spots, 2 separate electric meters, 2 water meters and sewer accounts, granite counters in kitchens, and central A/C, and room for a pool. The property consists of a 1 bed/1 bath apt above rented at $1,200, and a 2 bed/1 bath below rented at $1,700 Per month. Owners will have flexibility of occupying entire home as a 3bed/2bath or renting out a portion as a lock out unit. Building was termite tented in July, 2006. As I mentioned the house is now priced at $585,000 or $496 per sq ft. That price makes it very competitive in the market since it is well located in Old Town, has off street parking, and is legally licensed as two living units. The present owner purchased the house in April 2005 and paid $785,000. He then did the renovation which had to cost a minimum of $100 per sq ft rounded to $150,000. So I would increase the capital investment in the property to be in excess of $$935,000. Some smart shopper is going to buy this house on its Half Price Sale quite soon. Mark my words.

I have shown 1119 Olivia Street several times. The downstairs bedrooms are on the small side. But they work--especially for a rental. If a buyer wanted to reconfigure the downstairs or upgrade the flooring from ceramic tile to wood, or even do a chi-chi redo, I think it would be money well spent, but it certainly is not necessary. The seller renovated or rebuilt everything except the roof, and it looks like it is in good shape. (A home owner's inspection will tell for sure.) Finally, I am not a friend of the seller/agent. I just think this property at this location and at this price makes good sense.

A couple of months back I wrote an item about the house directly across the street at 1118 Olivia which is priced at $485,000 or $700 per sq ft for a 2 bed 1 bath home that is in a compound. I think both properties have their individual attributes. The two units at 1119 Olivia is a potential Short Sale. Any sale of 1119 property will necessarily require the approval of the current lender. The listing agent/owner told me he has discussed the short sale scenario with his lender and that the lender is prepared to act accordingly.

CLICK HERE for more info, additional photos, and a map to help you locate 1119 Olivia Street.

And CLICK HERE to checkout a partial list of the 39 duplexes for sale in Key West. I eliminated properties that are not located in the Old Town area or that are not comparable in asking price.

CLICK HERE to perform your own personal search of all Key West mls listings. Then give me (Gary Thomas) a call to schedule a personal showing. My number is 1-305-766-2642 or you can send me an e-mail at kw1101v@aol.com.

Flying Down to Buy REO in Key West

Flights to Miami and Ft. Lauderdale are cheap this time of year. Even some flights to Key West are relatively inexpensive. So hop on a plane and fly on down to Key West to buy yourself an REO.

REOs are real estate owned by banks and mortgage companies acquired through foreclosure. In case you missed the news the past year or so, we got problems in the banking and mortgage fields due to variety of causes. As a result lenders across the country (and internationally as well) own a lot of residential properties in all price ranges and in all localities across the country. Key West is no exception.

I created a list of REO ASSETS (properties for sale) that are available from just one
company in Key West. CLICK HERE to checkout the list of homes and condos from Key West up to Big Pine Key. Most are in Key West, however. But you need to read the details so that you do not assume all properties are here.

I used to work for a couple of the largest banks in Denver and managed the foreclosure and liquidation of bank owned assets. So I am writing from real life experience over a period of years. Banks make money by charging for various services and by lending money. There are lots of regulations that control how much money a particular bank may lend based in part on the value of its performing assets. A performing asset is a loan that is being paid as agreed. Loans that are not paid as agreed are "graded" and sometimes marked down because the bank doubts the loan will be fully or timely repaid. So the portion of loan that is deemed doubtful is set aside in a loan loss reserve category that itself is of various gradations. Sometimes the prospect of collection is so doubtful that the bank must write off the loan, but it may still attempt to collect the loan. Any collection after write off is viewed as a big win for the bank because it goes right to the bottom line as a cash asset.

When a bank forecloses on a house it typically converts the loan asset to an "REO" asset of a predetermined value based on an appraisal and which is discounted for holding costs, sales costs, taxes, etc. The bank usually sets the asking price on REO at the appraised value of the REO. Any amount owed on the prior loan that cannot be recovered through the sale of the REO is usually written off unless there is other collateral or assets which can be quickly recovered upon by the bank.

The problem with REO right now is that banks across the country have too much of it. It is flooding the real estate market and competing with similar properties owned by regular folk who pay their mortgages but who feel the need to sell their homes at an inopportune time. The result can be that bank owned REO may drive down the property values of similar properties in the same area.

Here are a few comments on some of the properties. But I encourage you to review the entire list. What may look interesting to me may not appeal to you. 62 Merganser Lane at the Key West Golf Club. That unit sold for $587,000 in 2004 and is now listed at $319,000.

1030 Eaton St Unit 404 A is a 2 bed 1 bath condo conversion with 932 sq ft of living space inside, a small outside area, and off street parking in Old Town. I think it is still priced to high at $345,000 even though the former owner paid $555,000 for it in 2005.

The house at 2422 Staples Ave was purchased in 2005 for $736,000 but is now offered at $399,900. It has 2 bedrooms, 1 bath, stainless steel appliances and an in-ground pool and covered parking.

And the house at 2401 Linda Ave Key West, FL also has a pool and a white picket fence. It is priced at only $409,000.

Not all REOs are good , but not all are bad either. It takes some time and effort to figure out if an REO property will work for you as a home or as an investment. There are a lot of REO properties for sale at the Golf Course. Three years ago the prices were outrageous. Today they almost break even as an investment. You might be able to purchase a townhouse around $300,000 and rent it out for enough to cover your monthly mortgage payment and other expenses. Even if you have to come out of pocket a little each month, the present downturn in the market will not last forever and I think the value of these units will go back up. Again, that is an opinion and not a promise.

The banks have already discounted the properties and taken into consideration the problems associated with the individual properties. But that does not mean the bank will not negotiate further. I encourage serious buyers to have a loan commitment in hand so that you can make a strong offer to close on a transaction within a matter of a few weeks. That will get the bank's attention. Don't complicate matters by putting in all kinds of contingencies. You must understand the bank is a reluctant owner that just wants to dispose of the asset. It has no emotional ties to the house. All the bank wants is money--quickly. And with the least amount of problems. If there are problems with the property identify them. But then posture your offer so that you identify the issues and agree to assume them--for a price concession.

If any of the properties listed above look interesting please give me, Gary Thomas, a phone call at 305-766-2642 or e-mail me at kw1101v@aol.com. You may not become a millionaire buying REOs like those guru's on late night tv, but you might become a thousandaire. That could be good.

Don't Say Cheap--Say Inexpensive

I have talked with several would-be buyers who think that the economic downturn has not hit bottom. They think prices will continue to fall and that they will be able to buy a second home in Key West at some future date for a lower price than is currently available. They may be right. But they could just as easily be wrong.

In an area where you have lots of similarly located, sized, aged, and comparable constructed homes I can understand how market events could cause prices on individual properties to fluctuate. And in locations that are dependent on one business or one industry, I can see where a downturn in a business segment (such as a plant closing) could dramatically effect prices across the board--not just in housing but in all segments of the local economy. But Key West is different from most parts of the American economy because of its particular location, the housing base, the tourist industry, and the significant military presence.

Some of the reasons people who visit Key West think about buying a second home here is the wonderful weather, the laid back lifestyle, the colorful locals, and the charming homes. There were stories on this morning's Today Show about the miserable weather in Michigan, snow in New York City, an earthquake in Nevada, and rioting in Europe. Our weather seldom changes and the front page of our paper, The Key West Citizen, usually deals local political news and human interest stories. We don't have riots or any serious crime as a rule. Our economy has taken a downturn because of the national emerging recession, but not all segments of the local economy are effected.

There are unique homes like the one I wrote about yesterday (409 William Street) that are very well priced by today's market and that I think will be deemed to have been a bargain just a few years from now. Some individuals who own numerous properties in Key West are hemmorhaging because they own too many properties that they have not been able to sell and have been forced to liquidate at below the now reduced fair market value. There are numerous properties in the foreclosure pipeline or that have been foreclosed that are now offered for sale at dramatically reduced asking prices.

Yet there is still a resistance by some buyers to buy because they think the markets will continue to decline. There are currently 17 condominium units at 1800 Atlantic listed for sale or less than 10% of the 172 units. They range in price from $398,000 to $1,698,000 (or $253 to $849 per sq ft) depending on location within the complex, extent of renovation, and the existence of transient rental license. There are several units that are in the process of foreclosure or that have been foreclosed. Those units have the lowest price points. A few weeks ago I wrote about ocean front and beautifully decorated unit at 1800 Atlantic that was being offered by the estate of the former owner at a very affordable price. It got snapped up immediately. I can understand hesitance or resistance at buying at the top end of a price range, but the units that are being offered as short sales or units that are bank owned are "buying opportunities". But that is just my opinion. CLICK HERE to checkout all current properties available at 1800 Atlantic. See for yourself whether there is a buying opportunity waiting for you.

Several of the properties that I have written about in the past couple of months have gone under contract and closed or are still awaiting closure. Most of the realtors I know are very busy right now showing properties and many are submitting offers. Many of those are There are opprotunites across the island in all price ranges and all types of properties. If you are seriously thinking about buying a property in Key West, it is time to get serious. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com for more information.

Of course I understand that not everyone believes in the future the same way I do. Some will just hang around waiting for prices to fall. Others may dream of buying a luxury land yacht so they can travel the country in style. But maybe a few will act now and buy into the dream of owning a place in Key West--maybe a unit at 1800 Atlantic.

409 William Street Old Town Key West, Fl

I wrote about 409 William Street a few months back. I was hoping that some buyer with a few extra bucks would contact me and say "Let's buy that house!" But that did not happen.

For the last umpteen years it was the Gideon Lowe Guesthouse and later Whispers Guesthouse. The current owner bought the property in June 2005 for $2,000,000 and started an extensive renovation of the property. Everything is new and first rate. The owner/developer did not cut costs or corners. The house is 2850 sq ft and sits on a 4422 sq ft lot on one of the best blocks in Old Town. This 2 story historic landmark was originally built by the youngest son of one of the island's earliest Bahamian settlers (c.1845) and expanded c.1866. The latest renovaton was completed in 2007.

The newest incarnation has 4 bedrooms, 3 and 1/2 baths, state of the art amenities, razzle-dazzle kitchen, pool, off street parking, gardens, sunset views, and a killer location. After the home was completed it was initially offered at $2,999,000, but is now offered at $2,195,000--that is $770 per sq ft. Those that read this blog know I think price per sq ft is a useful tool in comparing properties to determine their present and future value. This house is currently under-priced in my opinion. The seller just has too many properties and wants to sell. This is an opportunity some bottom feeders dream about. I do not see the price going any lower, however.

When the economy turns and lots of people start buying expensive second homes again, this is the type of house that ought to be in very high demand because of its history, architectural features, location, and up-to-the-minute quality renovation. Those features are future value which means this house will increase in value much greater than houses without the same qualities. At least that's my opinion. CLICK HERE for more photos and information on this quality home.

If you have the glue to afford a home like this, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw11001v@aol.com to schedule a showing.