First Quarter Real Estate Sales in Key West

Let's take a quick look at how well the Key West real estate market fared during the period of March 1st rough March 31, 2008 as compared to the same periods in 2005, 2006, and 2007. The year 2005 was a record year for Key West. There were 45 single family home sales in March totaling $55,369,000 and 36 condo sales totaling $24,880,513. Then the market began its slide. And Hurricane Wilma occurred in October and that created an even greater sense of uncertainty about Key West and Key West real estate as an for primary home ownership and as an "investment" vs. second home ownership as fulfillment of a dream.

The years 2006 through 2006 had the biggest dip in home sales to only 17 for $16,389,000, but there were 20 condo sales totaling $14,045,000. In 2007 there were 21 home sales for $17,320,550 and condo sales increased to 23 for $19,056,725. This year the single family home sales increased again to 25 that totaled $19,565,300. But condo sales slumped to only 14 with a paltry $5,115,450.

The First Quarter in 2005 saw 102 single family home sales totaling $123,299,090 against 46 this year with a volume of $39,589,300. The average home price declined 29% from the 2005 level. But condo sales during the same time fared worse. There were 82 condo sales in 2005 totaling $55,871,563 vs. 29 this year with only $13,240,950. The average condo sale declined from $681,361 in 2005 to $456,584 this year or about 33%.

Back when I started this blog I wrote about real estate market cycles. They start with euphoria transition into denial and end in capitulation. I think and hope we're in the final phase. Everyday for the past three months I watch the mls as real estate owners price or re-price their real estate offerings based on the new real estate reality in Key West. The mark downs and even new offerings at significantly lower asking prices is noteworthy. I'll probably get yelled at for saying it but the condos out on the east side of the island are free falling as are the units at Key West Golf Club. A lot of owners are just "walking away" from Golf Course condos that they purchased in 2005 when the average unit sold at $681,361 vs 2008 when the average unit sold at only $348,700--that's just about a 50% drop in price. The "value" of the units is still there. But the price is gone. And so are the owners. They are leaving their homes or investments. They are trying to sell short and walk away. There are currently 29 units on the market at the Key West Golf Development with an average asking price of $455,372. For example, Mr. A bought his unit in 2004 for $549,000 and it is now priced at $299,000. He had an 80% loan but got a boost from his lender of an auotmatic second of $54,900 to help with his down payment. Still, he had $54,900 of his own money in the condo. That will be his loss. The lender will probably end up losing $294,000 on this deal when real estate commissions and other sales costs are included. And remember,there are 28 other properties for sale there alone. And the sales are not over.

I've seen a change in the market in Old Town as well. The grand homes are still retaining their allure but they don't sell that often. The large expensive renovations have started to take their hits. Many have been reduced in asking price because they did not sell. I've written about several of them. The homes that would have sold three years ago around $3 million are now worth about $2 million or so.

Just about every Realtor in town is busy showing property and many properties are going under contract every day. A lot of the folks I've been talking to are looking for bargains and they say that they think we are at or almost at the end of the down market and that is why they are starting to look. Key West has not lost its allure. It just got way over-priced, and the national economy and the mess in Washington just compound buyer uncertainty.

BIG Short Sale - 709 Bakers Lane

One of my favorite properties just became a real bargain. No hyperbole. Like Joe Friday (Jack Webb) used to say "Just the facts!"

709 Bakers Lane sits on Solares Hill at just about the highest point on the Island of Key West. It was renovated to sell at $2.8 million. The owners missed the 2005 selling season and then the downturn occurred in the real estate market. The sellers then made periodic price reductions. We put a deal together a few months back but the buyer was unable to complete the transaction.

So today the property is offered at $1.4 million on a short sale basis which means that the lender will have to approve the sale price since the asking price is less than the amount owed to the lender. The loss for the seller is substantial. The opportunity for you as a potential buyer is very substantial. This is a deal at this price. This place is really sweet. The gardens and pool area are enchanting. There is enough space for you and your family and friends (you'll have lots of friends when they see these new digs!!!) to have separate living areas and very accommodating common areas. CLICK HERE for more info and more pictures.

And your private little island within the Island of Key West is only two blocks from Duval Street and short walk to the Historic Seaport.

CLICK HERE to see 6 other houses in Old Town with 3 or more bedrooms that are comparably priced (actually, all are priced higher by more than $75,000). You will quickly see and truly appreciate why I call this house at this new price a Bargain.

Call Gary Thomas immediately to write an offer on this property. 305-766-2642 or e-mail me at kw1101v@aol.com.

Bank Foreclosure 1103 Virginia Street Key West

Bank Foreclosure at 1103 Virginia Street. Four bedroom, two bath house with no kitchen--looks like somebody took it away. Central A/C, beautiful pool and deck area, covered off street parking, some nice decorator touches and some work left undone. The tax records show this house as 1626 sq ft and sits on a very large 3515 sq ft lot. The house has new siding, new windows and doors, new floors, new drywall, new electric, and new plumbing. The asking price is $499,900 or $307 per sq ft. That sounds too good to be true for Key West.

CLICK HERE to read what the listing Realtor has to say about this property. The listing Realtor is not local and did not have any pics posted. So I took some pics and you can see them HERE, HERE, HERE, HERE, HERE, HERE, HERE and HERE.

1103 Virginia is located one block west of White Street and one block north of Truman Avenue in the south portion of Old Town. Fausto's Market is one block to the east. The Truman & White Chevron is a block north and a block east for reference points. The Wesley House Child Care facility is one half block to the east and the Montesori School is one block south of that. The area is a mix of long time Conch family homes and recent renovations. There are several compounds in the immediate area as well.

For a buyer looking to get a big piece of property with a pool and who doesn't mind installing a new kitchen, doing some painting, and completing the landscaping this may be the house for you. The Prior owner paid $1,000,000 for this property on September 2005.

If you are a serious buyer I think you should act quickly. I would suggest making a cash offer with a quick close contingent only on a home owner's inspection within ten days of the agreement. This is a lot of house for the money. Call me, Gary Thomas, 305-766-2642 to see this house. This property will not last long at this price.

Scream -- Not the Movie

I received an email on Friday. I'll let you read it.

Hi Garry,
I just wanted to let you know that also because of your blog, our short
emailconversation and your analysis of the current properties that are on
the market, I fall in love with XXX XXXXXXX, came over, made a (good) offer
and bought it.
Hope to meet you someday in person in KW...
Greetings from a rainy and cold Netherlands,

XXX XXXXXX

XXX had contacted earlier in the month regarding properties he knew by address and asked my opinion on those houses and specially asked "please give your opinion and options of good properties around 500-600k with a possible reduction during negociations."

It happens that one of the properties he was interested in is a former listing of our office. (It was then listed with another Realtor at a significantly lower price.) I had probably at least ten Open Houses at that location over a year's time. I had intimate knowledge of the house and had listened to the comments from several hundred people who had walked through the property. I felt I could give very knowledgeable information on the house's good points and bad point.

I made an appointment and looked at a similarly located property that was equally charming in the same area. I wrote my would-be client an e-mail message discussing the merits of the two properties. I concluded by saying "Both houses will probably still be available when you come to Key West. But properties are selling. My feeling is that people may be thinking we are near the end of the down market and they don't want to wait until it swings back up and miss the bargains. Again, thanks for reading the blog and call me when you get here. Bring lots of cash!!!"
(I had sent him a list of other properties in his price range earlier with comments.) After reading my e-mail he responded and thanked me for my advice: "Thanks for your quick reply. I am planning to coming to KW in a month to make decisions. Maybe we can make an appointement to discuss serveral options."

I did not have a Buyer-Broker contract with the would-be buyer. And it may be that he thought he had to deal with the listing Realtor or that if he dealt with the listing Realtor instead of through me (or another Realtor) that he would get a better price. It doesn't work that way folks. Every Realtor hopes to sell his/her own listings because they make more money. But in reality the great majority of sales are co-operating sales between two offices (or sometimes between two agents in the same office).

It's ironic that perhaps it was my recommendation that led to the pending sale of this property. When our office had the property it was priced $216,000 more. The owner encouraged me to hold Open Houses to show his property. But he disliked my bringing information sheets on comparably priced homes in the Old Town area for buyers to see. He told me it was my job to sell his house, not to solicit clients. One time he even hid my information sheets. (I quit doing open houses for him by the way.)

Such is life in Key West. Sometimes I feel like the guy in the pic above.
Please, no more well intentioned would-be buyers who want to pick my brain (such as it is). But if you want to buy a place in Paradise, I'm still open for business and willing to help. Call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

CLICK HERE to search the Key West Association of Realtors mls database. This database is maintained in real time. The listings you see and the prices shown are the real deal--not stale info like you may see on other search engines. Don't waste your time searching elsewhere. If you see something you like, please call me.

Time Waits for No One.

I have been getting phone calls and e-mails from people who have been reading my little blog. A lot of people have decided that now is the time to start looking at buying something in Key West. Like a lot of Realtors I have been showing properties to potential buyers. And I have tried to impress on prospective purchasers that now is the time to make your best offer. For the most part the prospective purchasers pack their bags and head back home thinking time is on their side and that they can come back to Key West a few months from now and get a better deal. Maybe they can.
But maybe the deal they could have got will be sold by then.

This week several of the properties I have mentioned in my blog and in personal phone calls or emails to potential buyers went under contract. Real estate in Key West isn't like real estate elsewhere. There are some properties that are so unique that, well, they are just that: unique. The unique character could derive from history, construction, location, view, or price. Time waits for no one. Sometimes you get just one shot at buying something unique. Sometimes the misfortune of others makes the opportunity to buy something at a bargain price seem like there must be something wrong with it. So potential buyers hold back and try to over-analyze the deal. And then somebody snaps up the property.

When I worked for the Resolution Trust Corporation in the early 1990's I could not buy any of the real estate that the RTC was selling. A lot of folks back then waited for prices to drop further. The country was in a recession, and people were afraid to commit to long term investment. Those with vision and money that bought from the RTC got to participate in one of the greatest redistributions of wealth in our country's history. And that is what it was: a redistribution of wealth. One group of owners transferred their holdings to another group who bought at a huge discount. The real estate had not lost its intrinsic value. But it had lost its allure.

That same scenario is playing out again, right now, here in Key West. The property being offered is different, however. The bargains are not unfinished subdivisions, or office parks, or hotels, or golf courses. Today's bargains in Key West are homes, condos, and some commercial properties. But there are so many properties on the market that many potential buyers are afraid to commit. And many of the properties that are being aggressively marketed are short sales and foreclosures. The absentee banks and asset managers are getting a little better at responding to offers in a timely fashion. And I think some have a sense of doom and gloom and are making some aggressive business decisions on sales prices. They aren't giving away the farm--yet. But I sense they are responding to good faith offers in a positive manner.

If you snooze, you lose. CLICK HERE to search the Key West mls database. If you see something that looks good, please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

508 William Street Old Town Key West

This one-of-a-kind Old Town house at 508 William Street is waiting for someone to make it a home. The property was completely renovated over a three year time period by JJ Fairbank Construction. This beautiful home features Brazilian cherry floors, high ceilings, crown molding and custom built French doors throughout. The gourmet kitchen is equipped with soapstone counter tops and professional stainless steel Viking appliances. The bathrooms are spectacular with large walk-in showers and Waterworks fixtures. There is off street parking, a covered loggia, and a heated pool. CLICK HERE for more photos and information on 508 William Street.

This smart and slick home is located three blocks from Duval and two blocks from the Historic Seaport. It has 3 bedrooms and two large baths. The rear of the house is brand new construction. There you will find the master suite with vaulted ceilings in both the bedroom and bath. And there are decks on either side of this area. The entire second floor is another master suite with sensational views of Old Town.

Let me show you this house. You will be very pleasantly surprised. The home has 1939 sq ft and sits on a 3346 sq ft lot. The house was just reduced from $1,999,000 to $1,549,000 or $799 per sq. ft. That is value. This house would have sold around $1000 per sq ft 3 years ago. But that was then and this is now. This is a good price on a beautiful home in a very desirable neighborhood. This is what you have been looking for.

CLICK HERE to preview all current Key West mls listings and then call Gary Thomas 305.766.2642 to schedule a showing of your new home in Paradise.

Bank Foreclosure -- 1021 Johnson Key West

Everybody likes it when the bank makes an error, right? That is unless you have to pay for the error.

One of the sad things about all of the foreclosures is that big banks hire asset managers to mange their foreclosed real estate. The managers then hire Realtors to list and sell the properties. But banks are notorious for not wanting to spend any money on fixing or maintaining their depreciating assets, so they neglect them. And this is the case of 1021 Johnson Street in the Casa Marina Area of Key West.

I live two blocks away and know the area very well. This house is located on one of the best blocks in Key West. Remember I have said many, many times the location matters and this is a prime example. The house next door to the west sold in 2007 for $3.1 CLICK CLICK.
The house next door to the east is on the market for$2,450,000 CLICK.
There is a brand new house just being finished on the corner. I think it looks huge and out of place and way overbuilt, but the other estate-type houses near it to the south may justify this huge addition to the area CLICK. One block to the west a local Realtor couple are nearing completion of their new home which will likely price in around $4 million CLICK. And next door is another estate I wrote about earlier that is available at $3,395,000 CLICK.

Back to 1021 Johnson Street. It was built in 1958 and has those Jetson roof lines and stark mid-century architecture. So if you want quaint Key West architecture, stop reading. The front entry features an indoor koi pond with waterfall CLICK. And that area opens into the really beautiful new kitchen with high end appliances and cabinets that compliment the original architecture of the house. The kitchen window opens to the incredible pool area for serving food and cocktails.

The living room was updated and has a media wall CLICK. (The house is wired for media from a central control point.) That area flows into the dining room which opens onto the rear pool area. The master bed and bath are located at the right rear of the house and they also open onto the pool area. Wait till you see that pool! Photos of the bedroom and master bath can be seen here. CLICK CLICK CLICK CLICK. There is a second bedroom and bath at the front with a beautiful tree framing the view from inside CLICK.

There are two additional bedrooms on the second floor wing that is located on the opposite side of the house and behind the double garage. Can you believe it, a double garage with reinforced doors, in Key West! Downstairs by the pool there is yet another room which would be great as an office or artist studio. There are more rooms. I just can't remember all of them.

The floors are a mix of terrazzo, tile and wood. All of the exterior doors have been replaced with very expensive hurricane resistant doors. The windows at the front of the house are original however.

The yard was once lush but now looks like a set of a scary movie. This house is clean and shows well, but the grey gardens got get some water and attention. This house is priced at $1,624,900 or $611 per sq ft for this 2661 sq ft home on a 10,000 sq ft lot. The listing agent told me yesterday that they have been getting a lot of showings on this house. I think it is priced very competitive, but I suspect someone will get this house for less. How much less will probably depend on who makes an all cash, close like tomorrow kind of offer. A homeowners inspection is a must. I saw a couple of things a buyer should be aware of, but for the price of repair they are no big deal. CLICK HERE to read the listing Realtors description and see more pics of the house.

If you have about $1.5 million (I'm speculating folks!) in cash and can close next week and like mid-century modern, call me, Gary Thomas, 305-766-2642 to schedule a showing. Let the bank's error be your gain.

1113 Watson Street Key West -- Legal Duplex

Just Listed: 1113 Watson Street, Old Town, Key West, Florida $705,000or $380 per sq ft. That is a real deal! This is a Legal Duplex that is offered at Appraised Value (3/18/08 by Bone Island Appraisal Company). "An appraiser's report is much more detailed [than a Realtor prepared Competitive Market Analysis]--and is the only valuation report a bank will consider when deciding whether or not to lend the money."

The report was made by an objective third party, someone who has no financial or other connection to any person involved in the transaction. I have often stated that properties in Key West are much different to other parts of the U.S. and for the most part, no two properties are alike. 1113 Watson is a prime example and that is why the owner followed my advice and had it appraised prior to offering it for sale.

This two story duplex was built in 1953 and was updated over the years. The exterior was recently painted. The upstairs unit has 2 bedrooms and one bath and window a/c units. It has a newer kitchen and is bright and airy. There is storage on ground level and washer & dryer.

The downstairs unit is very attractive and has a large living-dining area that opens onto a beautiful kitchen. The living area also opens onto an enclosed 380 sq.ft. rear screened porch. There are 3 bedrooms and two baths downstairs. The gated entry features bick pavers and is neatly landscaped for privacy. There is off street paved parking for up to 3 cars.

The upstairs unit is rented month to month at $1250 and has a 30 day kick-out. The downstairs is vacant so a new owner can have immediate access upon closing.

CLICK HERE to see more photos and additional info on this Legal Duplex.


This is my listing so please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com to schedule a showing.

709 Bakers Lane Open House Easter Sunday

OPEN HOUSE

EASTER SUNDAY

11:30 - 2:00


709 Bakers Lane The perfect island getaway beautifully located atop Solares Hill on a quiet lane off Elizabeth St. is this completely renovated walled estate. The main house has Brazilian cherry floors, wood wainscoting and 16' cathedral ceilings. The new gourmet kitchen has SubZero refrigerator, Viking wine chiller, Jenn Aire range and microwave ovens, 2 Bosch dishwashers, granite counter tops and handsome cherry/cream glazed cabinets. The family/media room has 2 walls of glass overlooking the 26' black pool w/waterfall and 'cave' spa! There are 5 porches, rooftop sundeck and bricked courtyard with fountain. Joined by a covered walkway is a 2bd/2ba guest house with kitchen & living space and a 1bd/1ba pool house with laundry.

CLICK HERE for more photos and details about the house. Better yet, come see me today between 11:30 AM to 2:00 PM.

Some Good News for Good Friday

It's a beautiful day in Key West. Town is full of people and some of them are opening their pocketbooks and buying homes. The news is so good that I had to post a mid-March report so that you people sitting on the sidelines may get off your duffs before the properties you want are gone.

Since March 1st there have been 29 residential closings in Key West. The majority are on the low end to be sure. That is where most people perceive that the bargains are located. Most of the properties are selling in the $200's to mid $300's per square foot. Those prices are what we were getting in 2003 and 2004 for modest to mid range properties. There were several sales in the $1.5 million range and they sold between $550 to $850 per square foot. And there were two big house sales: 916 Washington that originally listed for $3,750,000 and sold for $2,500,000 or $600 per sq ft and 326 Whitehead that originally listed for $4,495,000 and sold for $3,500,000 or $608 per sq ft. I think the new owners of the last two homes got terrific deals because they purchased value at a great price.

CLICK HERE to see the features and prices of each home or condo that was purchased during the first three weeks of March.

And even more exciting is the news that 92 homes and condos went under contract or went pending since March 1st. Our mls will only allow me to export 25 files at one time so CLICK HERE to see the first 25 properties so that you get a sense of what is being purchased across the board. The prices are very cheap to quite high. Again the least expensive is being bought up right away but there are some mid range and high end properties going under contract as well.

If you are in Key West and want to come by and see me on Easter Sunday, I will be hosting an OPEN HOUSE at 709 Bakers Lane (one half block south of Southard on Elizabeth Street. I'll be there from 11:30 AM until 2:00 PM. It's quite the place. It was designed and built to sell for $2.8 million. It is priced today at $1,749,000. CLICK HERE for more pics and info.

CLICK HERE to checkout all current Key West mls listings. Times-a-flying. Don't get left behind again. Remember last time when you said "I wish I would have bought before the prices got so high." Here is one final example of another value listing that is being offered at a very attractive price: 514 Porter Lane in Truman Annex. CLICK HERE for more info. Originally listed at $1,199,000 and just reduced today to $799,000. It has a transient rental license and good rental history. Opportunity knocks.