2008 - The Year in Real Estate in Key West, Florida

A couple of nights ago at the end of the CBS Evening News they ran a segment on people who passed away during 2008 like Paul Newman, Heath Ledger, Michael Crichton, Tim Russert, Jim McKay, George Carlin, Isaac Hayes, and so on. They were actors, authors, politicians, newsmen, and chess players extra-ordinaire. They were people who left a legacy of accomplishment through dedication to their art or profession. As I get older I have learned to really appreciate what others have done and what we all will miss because of their passing. For example, there are thousands of comedians, but only one George Carlin. So when we lose someone unique, we lose the promise of more from the one who passed.

I get emails and phone calls from people who are thinking of buying in Key West. Some people try to compare Key West with other areas of the country or narrow the focus to just other areas in Florida. I tell them Key West is unique. It is a part of Florida in name only. Key West is a place unto itself out in the middle of the ocean.

Our island is one mile wide and four miles long and there are about 25,000 full time residents. The size of the island and the population have remained pretty much the same for decades. Part of the island was "developed" by adding landfill to areas previously uninhabitable. That increased the land mass somewhat. That is not going to occur in the future. And the State of Florida has imposed a limitation on the population growth of the island (all of the Florida Keys actually). So it is not likely that the real population will ever increase to any significant amount.

Key West tends to get rebuilt from replacement or renovation of existing properties rather than following the models of growth in Miami and Ft. Lauderdale where developers purchase agricultural ground and build new subdivisions with houses that look like each other. Or where developers buy oceanfront ground and tear down existing structures and put up new ones. As a result, areas like Miami and Ft. Lauderdale have thousands of properties sitting vacant. If you want a real deal, go there. And you can live with hundreds of thousands of other people who drive on busy roads and go to shopping malls for fun.

During the past year I have commented on a lot of properties that I thought were good values. Many I called "bargains". Here are a few of the bargains that got sold in 2008, opportunities lost and sold at prices that we probably will not see again.

1101 Fleming Street is a sweet little house with a pool in a great location. Originally listed by another realtor at $850,000. It was re-listed by a new realtor at $599,000 and sold at $550,000. The buyer got an incredible deal in my opinion.

916 Washington Street is a major new home in the Casa Marina area. It was listed at $3,750,000. After over a year of marketing,the property last listed with another company at a new lower price and sold for $2,400,000.

1119 Olivia Street was a legal duplex in Old Town that had been newly renovated. It was originally listed at $1,149,000 and sold as a short sale for $550,000.

I wrote about 831 Johnson Lane after I showed it in the early part of the year. What an incredible Key West treasure it is. The property is made up of four separate cottages on a long and narrow parcel of land with a beautiful pool and enchanting gardens. It was offered at $1,295,000 and sold for $1,100,000.

Over at 1021 Johnson Street in the Casa Marina area there was a big bank owned house previously listed before the lender took possession at the asking price of $2,599,000. The bank sold the house for $1,500,000. There were multiple bids on this house and for good reason. The new owner has spent a few bucks and the place looks fantastic from the outside. I wrote about the house next door (our listing at 1020 Johnson Street) a couple of weeks ago. It is another house worthy of consideration in my opinion.

716 Southard Street is a very recent sale right in the heart of Old Town. It is a smaller two bedroom home with a pool and no off-street parking located a couple of blocks from Duval. It was listed at $599,000 and sold at $550,000 within a few weeks. Some buyers know a really good deal when they see it.

730 Passover Lane is one of my favorite properties. It is a one bedroom one bath house across the street from the cemetery. So lots of people would never seriously consider the house because of the location. I loved the location because it is so quiet and the view from the front door is one-of-a-kind. Originally listed at $795,000 this little gem sold for $430,000.

408 Grinnell Street is another bank foreclosure. It was a new house built to replicate a grand Key West style house. I showed this house several times when it was originally offered at $2,750,000. It sold for $1,325,000. Another steal.

There was a short sale on another great house located at 405 William Street. I wrote about this property a couple of times. It was originally listed at $2,250,000. It recently sold for $815,000.

Most houses in Key West are unique because very few were constructed by the same builder as is typical up north in America. Most were stick built by the property owner for his or her needs during different years, even decades, but all in a tight geographic area. Even the traditional "shotgun house" or "Conch Cottage" as we call them, vary greatly not because of the initial construction (which is typically similar) but because of additions added or remodels done over the years.

Our incredible climate and our laid back lifestyle attract the population that create the real diversity in our little island city. That is what makes living in Key West so much different than living anyplace else. You either "Get" the concept of Key West, or you don't. If you "Get" it, you understand why living here is living your life in Paradise. If you don't get it, there is a big beautiful world out there waiting for you. I hope you find it.

So here is a brief recap of recent single family home sales in Key West. There were 277 single family home sales in Key West in 2005 with a total sales volume of $324,571,954. In 2006 the sales volume shrank to $218,951,400 with 214 single family homes sales. The year 2007 saw the number of single family homes sales shrink to 189 sales and only $173,321,760 in sales volume. And in 2008 there were 197 single family home sales with a sales volume of $154,219,813. So sales are up over 2007 but down in price volume.

There were 11 single family home sales in the Old Town area during December 2008 with a sales volume of $6,988,000 and an average price per square foot of $434.62 per square foot. All houses in Old Town are not equal, so I know that reporting the average price per square foot may suggest that some currently listed houses are priced too high. Well, some are. But not all are priced high just because they are priced higher than the recent price per square foot. If you are a potential buyer and you base your decision to buy solely upon the price per square foot, you may miss an opportunity to buy a great property in Key West at a good price. There are some houses for sale that are so incredible that they can be considered treasures. If you limit your prospective purchase to houses that fall within a numerical range, you will definitely miss the chance to own one of the truly unique treasures. If you are a "market timer" and believe you can predict the exact moment the real estate market in Key West will swing upward, well, good luck.

There are 1124 houses, condos, townhomes, and multiple unit properties for sale in Key West. I sorted the single family homes in Old Town, Bahama Village, Truman Annex, and the Meadows and the number of available houses shrank to only 140. The least expensive is listed at $199,000 and the highest at $14,400,000. There are a lot of high priced unsold homes in this area so the average priced home skews upward to $1,468,925. There have not been a lot of buyers for the higher priced homes. And there is low supply of nice homes under one million dollars.

The recent government cash infusion into the money market is making loan prices more affordable, but most of the second home buyers in the Old Town area are cash buyers. I think the current "down" market and the huge supply of properties has created a tremendous buying opportunity for people who dream of moving here.

If you are thinking of buying in Key West, please consider using me as your Realtor. I am a full time Realtor. I don't wait tables or have a real job someplace else. I'm either at my desk looking for deals or showing property to prospective buyers. Maybe 2009 will be your time to buy a home in Paradise. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Thanks, and Happy New Year!

64 Front Street - Key West, Florida

This is how the listing agent describes the grand house located at 64 Front Street in Truman Annex: "Elegant 5BR/5BA home located on beautiful Front St. in Truman Annex. Open and airy design is perfect for Key West-style entertaining. Every room boasts one or more French doors opening onto covered porches. An abundance of walk-in closets and storage are among the many bonuses found throughout this home. The very private pool-side space makes this home just the best for tropical outdoor living. The 5th bedroom is located in the guest cottage (poolside). The large very unique pool with artisan mosaic tile is 6.5 feet at its deepest (pool newly resurfaced). All windows are protected with high impact-resistant Lexan 10, meeting existing hurricane standards. Pristine, well maintained, move-in condition".

I've been in a lot of the big homes in Truman Annex and 64 Front Street is one of the most memorable. When you enter the home you know you have arrived at someplace important. The ceilings are 12' tall on the main level and feature crown molding. The living room is extra large (there's a baby grand that is barely noticeable) and extends into an octagon shaped dining alcove that overlooks the pool. But it's the use of space planning, paint treatments, and design that makes you feel "at home" in each of the rooms. And that's the difference between a big house that tries to be "important" and a thoughtfully designed house that makes you feel comfortable.

The hand painted tiles in the kitchen make you feel at home and not in a designer kitchen showroom.

The master bedroom and bath are located on the second floor and overlook the pool below. There is a spiral stairway that leads down to the pool for a quick midnight dip before bed.

64 Front Street has 3213 sq ft of living space and sits on a 5005 sq ft lot. There is also covered off street parking. The home is offered at $2,295,000 or $714 per sq ft. CLICK HERE for more photos and detailed information on this elegant but livable Truman Annex home.

64 Front Street is a listing for Preferred Properties Christies Great Estates. Please call Gary Thomas, 305-766-2642 to schedule a showing.

By the way, today is the Second Anniversary of my little blog. Thank you to all of you readers and the buyers who found me over this great information highway that Al Gore created. And a special thanks to Jim from Nutley, New Jersey for suggesting that I write a blog about Key West real estate.

Don't Wait Too Long!

A week ago today I could drive either direction on Truman between Simonton and White Street in less than two minutes--even if I had to stop for a red light at Windsor Lane. On Friday it took me ten minutes. They're back! The "Wish I lived in Key West!" bunch. The people who return year after year and who ruminate "I wish I would have bought when prices were lower. I got priced out of the market".

This is true: twelve years ago I met a nice couple from New York who have been coming to Key West since in the late 1970's. They come to Key West at least twice a year and always stay at the Marquesa Hotel. They typically rent bikes and scout out potential homes to purchase as part of each trip to Key West. They eventually wrote a couple of offers back in 2002 and 2003 but their tenacity to getting the best of every deal prevented them from getting a good deal. The market continued to go up, and then we all know what happened to property prices across the country and right here in Key West. I saw that couple riding around last week on their bikes and making notes about a house on an Old Town street.

A couple of months ago I wrote about the slowness of the Key West market and how very little was selling. In a few days I will do a little report on what transpired in December and how the year 2008 did as compared to recent years. But I can give you a sneak peak. Sales are up. There is a lot of activity. A lot of the cheap stuff is getting bought up (bank owned properties and some good short sale properties). A couple of really big grand houses are under contract as well.

Preferred Properties hosted ten Open Houses yesterday and each host reported a big turnout of lookers. Well, we always get lookers. Looking is cheap entertainment. But several of the lookers are actually in town with the intention of buying a place in Key West. I know they all won't buy. Just like the couple from New York will probably never buy. But some will buy, and they may be buying at or near the bottom of the market.

I know there are going to be more foreclosures because I read the Monroe County Clerk's records a couple of times each week to see what properties are being foreclosed upon. So I accept the fact that we are not at the absolute bottom of wherever we are headed. At the same time I can appreciate the fact that the people who have property for sale right now really want to sell--for whatever reason. And there are some very attractive properties on the market.

The property I hosted at yesterday's Open House was a grand house located at 416 Elizabeth Street. It is offered at $3,900,000 so it is out of the price range of most buyers, but would-be buyers came to look nonetheless. The "oohed" and "aahed" at the place and told me how absolutely enchanting it is. The thing is there are smaller and much less expensive properties on the market right now that could evoke the same feeling of enchantment. People who dream of moving to Key West don't think in terms of how much their home will cost. They think about the type of lifestyle they can live.

CLICK HERE to search the Key West Association of Realtors mls database to find your new home in Paradise. If you see something you like, I'd appreciate it if you would consider using me to help you. Please call me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com. Don't wait too long!

Open Houses - Key West - Sunday

Preferred Properties Coastal Realty, Inc. is hosting an Open House at ten of our wonderful listings on Sunday between 1:00 PM to 3:00 PM. This is your chance to preview some of the finest homes in the Old Town area on your own. Stop by after church or on your way to brunch. It'll give you something to talk about and maybe dream about.

The houses that will be Open include: 64 Front Street in Truman Annex ($2,295,000), 1307 Truman Avenue across from Bayview Park ($2,800,000), 927 United Street ($1,450,000), 929 United Street ($1,495,000), 1110 Curry Lane ($999,500), 712 Southard Street, 628 William Street -love that pool ($1,295,000), 1109 Olivia Street ($749,000), 52 Canyon Royal Drive on Shark Key ($2,985,000), and you can find me at the best address in Key West 416 Elizabeth Street pictured above ($3,900,000). You can find me at 416 Elizabeth right after church around 11:30 AM.

Preferred Properties is the exclusive Key West affiliate of Christie's Great Estates. CLICK HERE to enter the Christies website. If you have some spare time and a fast computer click the digital magazine icon and look at Christie's Digital Magazine. You will be impressed!

But if you really want to be impressed, stop by one or all of our Open Houses on Sunday between 1 to 3. Tell the host that Gary Thomas sent you. You won't win a prize but it will show somebody read this. lol

48th Annual Key West House and Garden Tours

The Day After Christmas is always a special day in Key West because of the annual evening tour of some of the finest Key West homes that have been decorated for the holidays. This year it is the 48th Annual Key West House and Garden. The homes on this year's tour include 823 Johnson Lane, 909 White Street, 806 Ashe Street, 622 Louisa Street, and The Oldest House located at 322 Duval Street (pictured above in black and white photo). CLICK HERE for more information on prices, tickets, and transportation.

Of course you could do like a lot of vacationers: contact a Realtor and pretend you are going to buy a big old house in Old Town and ask him or her to drive you around for a couple of days.

But if you really want to buy take the tour and then please consider calling me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com.

Merry Christmas & Happy Holidays!

Did Gary Have Too Much Eggnog?

I took a nasty fall a couple of weeks ago while I showing a bank owned house. I slipped on some un-kept steps and hit my head and got bruised pretty bad. And then there's the eggnog that is so abundant at Christmastime. So if you think my suggestion that you consider 725 Whitehead Street in Old Town Key West is a little "odd", you can blame on the knot on my noggin or the eggnog. Or both.

725 Whitehead Street is a tiny little house (956 sq ft) sits on a 2075 sq ft lot (21'x98.87') Zoning is HRO which permits single family and office uses. It is located just a few blocks from the Monroe County Courthouse and one block from uber-busy Duval. There is a small guest house located next door to the south. The Bahama Village Shops are across the street at the corner of Petronia. And there is some public housing directly across the street on Whitehead. And there is a big old church on the corner.

CLICK HERE for more photos and information on 725 Whitehead Street. Do not let the asking price of $280,000 dissuade you from considering this little property. It needs work and the owner has asked for all offers with a very quick closing. You may be surprised how inexpensive a redevelopment property can be. Make an offer NOW! It may get accepted.

It's easy to get in to see this house. Please call me, Gary Thomas, 305-766-2642, to schedule a showing.

811 Southard - Historic Old Town Mansion - Short Sale

This is how the listing agent describes the property at 811 Southard Street in Old Town Key West: "The Mansion on Southard is an elegant historic estate beautifully renovated and restored. This 2008 Winner of the Prestigious Ceramic Star for Historic Preservation is the among the most elegant and luxurious homes in the historic district. High quality designer finishes including high ceilings, crown moldings, chef's kitchen, large open floor plan with amazing covered decks overlooking a huge and lush tropical lot. Off Street Parking, separate guest house, incredible pool and outdoor kitchen/bar area make this an Elegant Oasis For Island Living. This is a potential short sale subject to lender approval."

This stately property is quite large by Key West standards. The house is 3812 sq ft and sits on a large 8882 sq ft lot in the heart of Old Town. CLICK HERE to view some photos of the interior and exterior of this beautiful home.

If you did click the link you saw that the house has the following: 5 bedrooms, 4 baths in the main house and a detached one bedroom one bath guest house. The main house has a fireplace in the living room, a formal dining room, a casual dining area, a new pool, and cabana.The custom kitchen is finished in granite, Viking professional appliances, wine cooler, pass-through, breakfast nook, computer station & walk-in pantry. The spacious master suite includes a luxurious bath & custom closet. Beautiful outdoor living space with large new pool, waterfall, spa, shower & a fully equipped kitchen.

This property was listed for $5,300,000. Now the property is offered as a short sale at the incredible price of $2,995,000 or $786 per sq ft. For the buyer with the bucks and an eye for value, I would point out that adjacent development parcels are also available. That means to me that one could enlarge the already spacious grounds to create an even larger living space.

If you are among the select group of potential buyers for a home like this, please contact me, Gary Thomas, 305-766-2642 or e-mail me at kw1101v@aol.com to obtain more information. I have no personal knowledge as to what a lender may or may not accept on a property like this. But I do know that most lenders are considering reasonable offers from individuals with a shown financial ability to perform.

Little Big Short Sale -- Old Town Key West

I try to let readers know about properties that I think are potentially good buys in these difficult times. Such is the case of 412 Louisa Street. For those who are not familiar with Louisa Street, it is located one block north of United Street and runs from Bahama Village east to Grinnell Street.

The cute little two bedroom Conch Cottage at 412 Louisa Street is offered as a short sale for the already low price of only $425,000 or $567 per sq. This is what you can get: a topical getaway with a pool. The Conch style home has two bedrooms each with en-suite baths. It is 750 square feet on a 2457 sq ft lot that is located less than a block from upper Duval Street in Old Town. The living area is an expansive great room (kitchen and dining area included) with vaulted ceiling with French doors that open onto a covered deck, outdoor dining area and a nice sized pool. And there is brick paved and gated off-street parking.

This property was under contract as a short sale. The "buyer" recently pulled out of the short sale. The appraisal was done this present week. That means the lender has this particular property in the zone to get a deal done within a relatively short period of time. I encourage buyers who are looking for properties of this type to seriously consider this house. Let me add a final comment. This house was previously listed by one of the Top Agents in Key West. The asking price was $985,000. Our office (preferred Properties) currently has the house next door at 412 Louisa Street on the market. It is priced at $799,000. CLICK HERE to see our listing.

CLICK HERE and CLICK HERE to see a couple of photos of this charming little street and see the types home that make up this little neighborhood.

CLICK HERE for photos and more detailed information on this big deal on a short sale in Old Town Key West, Florida.

I don't think this little gem will last very long at this price. Please give me, Gary Thomas, a phone call at 305-766-2642 to schedule a showing--preferably to see both 412 and 414 Louisa. Act now while the opportunity is available.

Some Neat Key West Condo Short Sales

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

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

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

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

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

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

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

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

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

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

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

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