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

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

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

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

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

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

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

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

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

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

708 Passover Lane - Old Town Key West - Short Sale

The neighbors across the street are very quiet. And you can rest assured the view from the front door of 708 Passover Lane will never change. Never Ever!

708 Passover Lane is located just across from the Key West Cemetery at one of the highest points in Old Town Key West. The house sits to the rear of an odd shaped lot of 3364 sq ft. There is off street parking and a landscaped front yard with obscured views of the cemetery. The house itself is an arts and crafts style structure that was built (county records) in 1938. It had a new roof in 2000. County building permits suggest most of the interior renovations and the pool and rear deck were done in 1992.

If you are one of those buyers who feels compelled to have a designer kitchen complete with granite, marble and stainless steel, this old house could be a candidate for a new re-do that will not break the bank. It simply isn't all that big a place. And it is perfectly livable as is. The present owner paid $840,000 for this house in 2005. But now the property is a short sale and is offered at the asking price of $525,000 or $746 per sq ft.

On the other hand, some strategic fairy dust and paint could go a long way to make this charmer "pop". CLICK HERE and look at the photo of the off street parking. Imagine how cute the same space could be if the fence surrounded the area and was painted bright white. Get rid of the pea rock and brick the driveway.Ditch the trash cans while you are at it. Yuck! Imagine your little Key West car sitting in the driveway. There is a nasty old stub of a long gone tree that needs to be removed. Reinstall the picket fence around the permiter of the entire property and paint it white. Voila. You also may want to remove the screen that encases the front porch. It is not necessary and hides the beauty of this charming cottage. A house a couple doors to the north (CLICK HERE)looks somewhat similar. So it may give you an idea of what I think 708 Passover might look like sans screened porch.

There are only eight houses on the block. CLICK HERE, and CLICK HERE. CLICK HERE to see the scary cemetery. You don't need to worry about the neighbors across the street making a ruckus and keeping you awake all night. You don't need to worry about their friends taking up all the parking spots on the street. Same for the other houses on Passover Lane. The properties are single family and there isn't a guesthouse, bar, restaurant or gallery within a couple of blocks.

This is how the listing realtor describes 708 Passover Lane: "Sequestered cottage in the heart of Old Town with brick patio, fencing, offstreet parking, high ceilings, wood floors and walls. Tented by Hammerhead 2/11/09." CLICK HERE to read more info from the listing Realtor and to see more photos.

Everything in Key West seems to be negotiable these days. Half of my readers won't consider this house because of the location. So that means less competition from potential buyers that do not mind tombs with a view as neighbors. I think a smart buyer will act on this.

Please contact me, Gary Thomas, 305.766.2642 or e-mail me at kw1101v@aol.com to arrange to see 708 Passover Lane. By the way, I recently sold the house next door at 8 Passover Lane. My buyers absolutely love it and the neighborhood.

Fore! - Thought - Key West Golf Club

Forethought: "n. A thinking or planning beforehand; prescience; premeditation; forecast; provident care."

If you keep track of sales activity in Key West you may have noticed a flurry of activity in the past few weeks at the Key West Golf Club community. During the past couple of years there have been numerous foreclosures and related short sales that have driven down the asking and selling prices at the Key West Golf Club. I'm not reporting anything new. But the flurry of recent buying may be a signal we are at or near the bottom of the market, at least at the Golf Course.

CLICK HERE to view townhome sales at the Key West Golf Course over the past year. There was only one single family home sale (CLICK HERE) during the same time period. It sold for $735,500 in June 2008.

I also generated a report CLICK HERE of active listings for townhomes at the Golf Course. CLICK HERE to see a separate list for single family homes at the Golf Course. Try a Google Map search of the street address to get a better feel what the surrounding area looks like. Just like everywhere else on this planet, location means a lot. And in this instance, some "lots" are more valuable because of their location than others. Also, checkout the individual listings for photos of the interior and exterior. Asking price is not always a predictor of a good location or quality finishes of a townhome or single family home. Some townhomes and some single family homes have private pools. So you really need to view each listing separately.

My suggestion: use some forethought and consider buying a townhome or single family home at the Key West Golf Course community. Prices are low but demand may be rising. Get a good deal before the good deals are all gone.

If you see a property you like, 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. If you haven't been to the Golf Course in awhile, the view at the end of Golf Club Drive just as you enter The Sanctuary is absolutely beautiful. (I took the above photo last Friday.)

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

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

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

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

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

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

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

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

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

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

The Key West Bank Dick - Part Two

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

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

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

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

Half-Price in Key West

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

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

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

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

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

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

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

The One that Got Away!

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

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

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

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

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

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

Casa Marina - Short Sale - Do It Your Own Way

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

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

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

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

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

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

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

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

1119 Von Phister Sreet - Key West - Bank Owned

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

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

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

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

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

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

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

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

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

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

Verry Interesting!

If you are old enough to remember Rowan & Martin's "Laugh In", you'll surely remember Arte Johnson's German Soldier character as he peered through bushes and chortled "Verry interesting!". I don't know that I am chortling, but I do think I just found some very interesting sales statistics for Key West real estate. Earlier this month I recapped the April 2009 sales figures. We have had a fairly remarkable sales week just in my office. And that got me to wondering what else is going on. This is what I found:

There are seven single family homes sales "pending" in Key West. A pending sale means that all conditions of the contract of sale have been met and that the parties are just waiting to close. Two of the seven pending contracts are for "bank owned" homes. Three of the seven pending contracts are for properties priced above $1,180,000. There are nine condo, town home, duplex, and multi-family homes under contract. Two of those are short sales and three are "bank owned" properties. We should see most of the pending contracts result in actual closings sometime in the next 30 to 45 days.

This next part is "verry interesting": there are 88 single family homes listed as contingent in our local mls database. Contingent means that some condition in the contract (such as financing, home inspection, or other condition precedent) has yet to occur. When all conditions have been cleared, the contract is then re-classified as pending. If the condition cannot be satisfied (buyer cannot obtain financing, for example), the contract may fail. Fifty-six (or 63%)of the 88 single family home contracts are designated as "short sales" and 8 (or 9%) of the contacts are for "bank owned" properties. And those numbers only reflect what the listing Realtors have committed to writing regarding the contracts. I have spoken with other Realtors that have told me properties shown as contingent are also short sales but are not designated that way in the mls database. The importance of this is that something in excess of 75% of the single family homes sales in Key West that are effectively designated as distress sales.

The news on condos, town homes, duplexes and multi-family is about the same. There are 100 such properties designated as contingent. Fifty-six of those (56%) are short sales and 8 (8%) are bank owned properties. Not all short sales actually close, but the lenders are speeding up the approval process. More importantly, the number of short sale and bank owned contracts is whittling away at the perceived "over supply" of property. When all the excess (most of which are low-end)properties are sold, the Key West real estate market may be headed back to a sense of equilibrium. I mentioned the three pending single family home sales above $1,180,000. That's because we haven't had many such sales. The market has been depressed and buyers have not been buying. They have been sitting on the sidelines. Waiting. Waiting for the prices to fall more and more. And they have. Fallen.

There are 425 active single family homes listed for sale in Key West (from Mile Marker One at Mallory Square to Shark Key). None of these houses are officially designated as "short sales". Two Hundred-two or 47.5% of the active listings are located in Old Town, The Meadows, Casa Marina, and Sunset Key. There are an additional 12 single family homes in the same areas that are designated as "short sales" in the mls database. They range in price between $299,000 to $1,998,000 with a price per square foot variance between $304 to $572.

There are 147 condos, townhomes, duplexes, and multi-family properties in the Key West area actively listed for sale plus and additional 28 officially designated "short sale". (Some Realtors do not designate their listings correctly, so I am reporting what they input into the database even though their listings may be in error.)

I sense that we may be nearing the end of the down market. We still have to sell off all the excess inventory of unsold houses and condos. But for buyers looking to purchase a dream home in Key West, there just are not a lot of dreamy houses available. People that do not need to sell are pretty much not listing their properties. Buyers are resisting the prices of nice houses and are waiting for prices to fall. By the end of August or early September we will see who wins the waiting game. Hurricane season is approaching. It will be interesting to see how many buyers will be heading this way to snap up a house this summer. Verry interesting.

If you have been waiting for the bottom of the market, maybe you will agree with me that we may be near the bottom. CLICK HERE to search the Key West Association of Realtors mls database. If you see a property that you like, please consider working with me to help you find your place in Paradise. Please contact me, Gary Thomas, 305-766-2642, or e-mail me at kw1101v@aol.com.