Pessimism Be Damned!

The Bush administration has got so many things fouled up (the war, the economy, the environment, Katrina-gate, truth-in-government) that I sometimes slip into a state of severe pessimism. And that is not my normal attitude about life.

I have reported about the closing of many businesses on Duval and on the huge inventory of unsold homes and condos in all price ranges. And I have reported the monthly and quarterly sales during this past year as compared to 2005 and 2006. I have tried to be optimistic, but like I said I sometimes slip into a pessimistic state.

So I pleased to report that there seems to be an up tic in the real estate market. Our office finally has several deals in the works. Commercial and residential and in all price ranges. And other offices are doing much better as well. Fourteen homes and condos have gone "contingent" (under contract subject to contingencies) so far this month. And we have had two significant high priced closings this month ($2.655 million and $3.3million).

Other Realtors are reporting that they are getting busy as well. Perhaps the tide is about to turn.

On that optimistic note I wanted to share a new listing of a great home in the Casa Marina Area. I refer to the house as a Beverly Hills home because it looks like so many of the homes I have seen there. Casa Palmera is located at 906 Johnson, a block of the classic Casa Marina Hotel and the ocean. The 3700 sq ft home has 5 bedrooms and 6 baths. The house was completely restored from top to bottom. The main house features Dade County pine floors, walls and even ceilings and has a smart open and airy design. Most of the expected improvements and finishes have have been included with more notable enhancements of rated hurricane shutters, exterior kitchen, sun porch, and downstairs office/den/bedroom suite. There are two guest cottages. One Casita has a full living room, bedroom, bath & kitchenette, and the second is a study/writer's house with a full bath and outside shower. The lush tropical grounds open to all sides of the home and adjoining entertaining spaces, pool, and Casita via old brick pathways. This property is incredible. And it is priced at only $3.7 million. CLICK HERE for more info on this home. There is a great virtual tour that you can access from this page.

If that price is a little beyond your budget, don't fret. There are many homes available in all sizes and price ranges. Take a look a the Key West mls CLICK HERE. Then give me a call 305-766-2642.

Kill all the lawyers

Yesterday afternoon I attended a class that discussed the 9/07 Revisions to the FAR/BAR (Florida Association of Realtors and the Florida Bar) forms used by Realtors (and attorneys) to memorialize agreements to buy and sell real estate. Local real estate attorney Wayne Larue Smith taught the class.

Wayne aptly pointed out that virtually every contract for sale and purchase of real estate in Key West is made via an "AS IS" contract for the simple reason that our real estate is unique. Our homes are not of the cookie-cutter variety up north where you will see block after block of the same style house. Many of the homes in Old Town have "special" easement or restriction issues. Thus a Buyer of real property in Key West typically takes the property on an "AS IS" basis and has the right to inspect the property to determine if it is suitable to his needs. This would include determining if there are any structural, mechanical, environmental, or legal impediments, or any governmental, building, , safety codes, restrictions or requirements that may effect the real property. If after completing his inspection process a Buyer "accepts" the real property, he gets the benefit of his bargain. If he finds fault with an issue, he can try to re-negotiate the contract to achieve a better resolution of the issue. If he can't renegotiate, he can walk and get his earnest money deposit refunded.

Here's the rub: the new revision contains language that says after an inspection "Unless Buyer exercises the right to cancel granted herein, Buyer accepts the Property in its present physical condition, subject to any violation of governmental, building, environmental, and safety codes,restrictions or requirements and shall be responsible for any and all repairs and improvements required by Buyer's lender." So if a buyer misses something or relies on a false statement by a seller or an erroneous statement by a Realtor, the Buyer is stuck.

Another provision in the SELLER'S DISCLOSURE paragraph adds this language: "Seller has no knowledge of any repairs or improvements made to the Property without compliance with governmental regulation which have not been disclosed to Buyer." Many sales are not accompanied by Seller's Disclosure statements. I think this language may cause many a deal to go south.

One Realtor pointed out that much of the discussion suggested that the process of buying and selling seemed to be adversarial. He said it does not have to be that way. I agree. The fewer number of issues between buyers and sellers the better. Reduce the opportunity to disagree.

It will be interesting to see if any of the September 2007 Revisions lead to more (or less) litigation between disgruntled Buyers, Sellers, and/or Realtors.

Rock-a-Bye-Baby

Rock-a-bye baby, in the tree top
When the wind blows, the cradle will rock
When the bough breaks, the cradle will fall
And down will come baby, cradle and all

So today is November 8th and CNN has a Breaking News banner reporting that Fed chief tells Congress economy may slow significantly. Really?!

MSNBC has an equally alarming banner: World shares tumble on fresh credit concerns Sell-off follows a big slump on Wall Street amid mortgage, finance fears.

Our economy sucks right now. The value of the dollar is declining and the prestige of the dollar is in peril in my opinion. Remember "What’s good for the country is good for General Motors, and vice versa" a statement made by Charles E. Wilson while president of the General Motors Corporation.
Yesterday, GM took a $39 Billion write-down partially attributed to real estate losses incurred through its real estate arm GMAC. Does not sound good to me. Citigroup and Merrill Lynch are two companies who lost their CEOs this past week over huge corporate losses also attributed to real estate mortgage losses.

The DOW JONES Average has taken a 1100 point drop in the past 30 days. CLICK HERE.

Maybe this cheery news partially explains why so few real estate deals are occurring in Key West. Maybe potential buyers are fearful that the price and value of real estate will continue to fall. The value of the dollar vs. the Euro is also at a new low. And if that value continues to decrease, the buying power of the dollar will be evermore diminished in the US as well.

Perhaps a smart investor who has cash might decide to use his cash to buy real estate now. If the current price of real estate is at or near bottom, then the cash ought to rise more quickly after recovery than the cash itself would. Makes sense to me.


CLICK HERE to search the Key West mls database and then call Gary Thomas to take a peek at real estate in Key West. You may actually find some place to put your cash before the bough breaks. 1-305-766-2642.

Membership has its rewards

Two reasons why I like Key West: one--the weather and two--nothing is predictable.

The summer heat has broken and the wonderful Key West weather has returned for the next six months or so. Thank God. I can now sleep with the windows and doors open at night. You folks up north should be so lucky.

But the reason I am writing today is to relate an incident that occurred at the Key West Association of Realtors annual installation of officers dinner this past weekend. The fete was held at the Key West Westin Hotel. After the gala was over and folks were making their exits there was a brew-ha-ha. (I know it's not spelled that way, but methinks it was the brews that precipitated what happened.)

Two well known male Key West Realtors apparently got involved in a bloody fist fight and wrestling match over a woman, not the wife of one of the men. I heard there were torn clothes, at least one bloodied nose, and destruction of hotel property. I wonder if the Association of Realtors will ever be allowed back.

On a lighter and totally unrelated note I am reminded of an early morning bike ride I made a couple of years ago as I headed to the gym. It was about 6:00 AM and I was riding on Washington Street just west of the El Patio Motel when I saw a young man in his early 20s walking down the street totally nude. I looked back and he was nude. No doubt about it. I circled the block and went to a public phone on South Street by the youth hostel where I called the police. The officer asked me to describe the naked man. How was I supposed to answer that? Anyway, I got back on my bike and returned to the corner of Reynolds and Washington. I saw a young woman at the bus stop and asked if she had seen the nude man. She had but said he disappeared and asked me to wait with her until the bus came or the police arrived. I did. About 5 to 10 minutes elapsed and the police finally arrived. The nude man had totally disappeared. As I was talking to the cop I looked back towards Washington and the nightwalker emerged from between two apartment buildings--still unclothed. The cop saw him and walked toward him with his fleshlight drawn and said "What in the hell do you think you're doing?" He took the kid to the pokey.

Like I said nothing is predictable in Key West. There is always something going on to give you a chuckle.

CLICK HERE to checkout all current Key West and Lower Florida Keys mls listings. Then if you happen to see something that tickles your fancy, call Gary Thomas at 305-766-2642 to set up a showing. Who knows, maybe one of the pugilistic Realtors will show up.

1101 Fleming Street

I first saw 1101 Fleming Street way back in 1987 right after the ownerthen had remodeled the cute little conch cottage located the near of Fleming Street. Way back then that location seemed like it was almost near Kansas that it was so far from Duval Street. Things change.

The cute little conch cottage has changed hands a couple of times since 1987 and the present owner is an estate in New York that has placed the property on the market. The house was originally priced at $850,000 in March of 2007. The price has now been reduced to $675,000 or $888 per square foot for the 760 sq ft cottage situated on a 1813 sq ft lot located at the corners of Frances and Fleming Streets. The cottage has not been improved upon since I saw it 20 years ago. So why is it being mentioned in this? blog you ask.

Well the cottage is what people dream about when they dream about owning a second home in Key West. It is small enough to feel cozy and can be, but large enough to have a few friends over for cocktails and dinner or a weekend stay. It has a pool and deck right off the living area and a charming yard that would be a joy to maintain. And the house is not in the hinterlands as I once thought. Instead, it is a short few blocks walk to Duval or the Historic Key West Seaport. The neighboring homes are all priced higher and most homes are larger and more impressive. See the photo of the house across the street. Neighbors like that drive the property values up for everyone.

So if you are in the market for a second home in Key West this cute little conch cottage CLICK HERE may be one that you should look at. I think the house is priced too high for today's market and believe an adjustment downward is warranted. The house is going to need a little fixing up in my opinion. And perhaps that fact can be used to your advantage in negotiation a fair price on the house. But once the new paint is applied and the new appliances and tile are installed, the cute little conch cottage will be all primed for another 20 years in a great location--almost near Kansas.

To see this property or any other home in Key West please call Gary Thomas at 305-766-2642.

Great Old Town Location

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 is priced at $1,999,000 or $1,031 per sq ft.

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.

Key West Home Sales in October

The number of October 2007 single-family home sales fell in line with the past two years. There were a total of 11 sales with gross sales totaling $10,435,000. The least expensive home was a 1 bed, 1 bath listed at $433,500 that sold for only $355,000 The average sale was a 1608 sq ft home listed at $697,000 but that sold for $550,000 after 97 days on the market. The most expensive home to close was previously mentioned in my blog. GO HERE for more on this grand old Key West home located at 620 Eaton. It was originally listed at $10,000,000 (along with an adjoining home on Elizabeth Street) in late 2004. The asking price was gradually reduced over the passage of time. It closed on October 31 for $3,300,000 or $590 per sq ft. (And the kitchen was not finished at that price.)

Condo sales for October 2007 produced 12 sales totaling $9,770,395. The least expensive unit was a 1 bed 1 bath listed and sold for $246,874. The average sale has 1228 sq ft and listed at $816,450 but sold for $695,000. The numbers get skewed a bit on the most expensive sale because the four highest priced units to sell were in the new Beachside Resort (the old Holiday Inn property on North Roosevelt.) The units were identical in every respect except location. The cheapest went for $933,000 and the highest went for $1,839,000. These units are part of a vacation rental program. And most buyers are committed to rent their units. The guy who bought at $933,000 may have got the better end of that bargain. More telling is the fact that the next highest sale was in Truman Annex for a unit that listed at $995,000 and sold for only $800,000.That owner/seller bought that unit in November 2005 for $1,225,000. So he took a $425,000 bath. The rest of the sales were in the mid to high $300,000’s—a far cry from previous years.

In October 2006 there were 13 single-family sales in Key West. The least expensive home was a 1 bedroom the listed at $425,000 and sold for $420,000. The median home was a1318 sq ft listed at $795,000 and sold for $685,000. The most expensive home was a 4 bed, 5 baths with 2872 sq ft and that was listed for $2200,000 and sold for $1,930,000 after 312 days on the market.

The least expensive condo sale in October 2006 was a 1 bed, 1 bath unit with 409 sq ft that was listed and sold for $235,907. The median unit was a 1032 sq ft unit listed at $524,000 and sold for $504,250 after 133 days on the market. The most expensive unit was 1 2 bed, 2 bath unit with 1357 sq ft at 1800 Atlantic that had a transient license. It sold for $735,000.

There were 10 single-family home sales in October 2005. The least expensive was a 2 bed, 1 bath home with 640 sq ft that listed at $525,000 and sold for $500,000. The median sale was a 1330 sq ft home that listed at $892,000 and sold for $840,000 after 145 days on the market.

In October 2005 the least expensive condo sale was a 1 bed, 1 bath unit with 382 sq ft that was listed and sold for $295,000 in one day. The median unit had 900 sq ft and was listed at $725,000 and sold for $699,000 after 126 days. The most expensive condo was a 4 bed, 3 bath town home in Truman Annex that had a private pool and all the extras. It was listed at $2,079,000 and sold for $1,937,250 or $1043 per sq. ft. Try to get that price in 2007. Not gonna happen. No way.

The majority of properties that went under contract during October 2007 were priced below $500,000. The market is just stagnant. There are buyers but they are looking at low-end properties. It seems to me that second home buyers are waiting for the other shoe to drop so that they can buy their dream home in Paradise at a deep discount.

Are you a bottom feeder? We may be near bottom. CLICK HERE to search the current mls listings and then give me a call to see what your dollars can buy in Key West. My number is 305-766-2642.

Gay Enclaves Face Prospect of Being Passé--Huh?

The New York Times reported it so it must be true: Gay Enclaves Face Prospect of Being Passe`. CLICK HERE to read the entire article.

The article's author, Patricia Leigh Brown, says"These are wrenching times for San Francisco’s historic gay village, with population shifts, booming development, and a waning sense of belonging that is also being felt in gay enclaves across the nation, from Key West, Fla., to West Hollywood, as they struggle to maintain cultural relevance in the face of gentrification." She talks about the change of character of San Francisco's Castro Area and how that mirrors the destruction of gay neighborhoods. The article then mentions Don F. Reuter, a New York author who is researching a book on the rise and fall of gay neighborhoods, or “gayborhoods.” He says “The Castro, and to a lesser extent the West Village, was where you went to express yourself.” “Claiming physical territory was a powerful act. But the gay neighborhood is becoming a past-tense idea.”

Poppycock. I was in San Francisco two weeks ago and the Castro was a gay as gay can be. I was in the Folsom area and it was gay can be. The department stores around Union Square were filled with gay sales clerks and gay shoppers. There was a sea of gay men. Ms. Brown specifically referred to the Castro Street Halloween celebration back in 1979. I was there on Halloween Night in 1979. The next night I was part of the filming of the finale of the movie CAN'T STOP THE MUSIC. That was 28 years ago. What a glorious time we all had.

In the article Ms. Brown mentions straight people walking down Castro Street today as if they were reclaiming space. Poppycock again. Gay enclaves don't mean straights are not allowed. There are, if anything, more gay stores today on Castro Street than there were 28 years ago.

As for Key West's mention in the article as being a part of these "wrenching times" of "population shifts, booming development, and a waning sense of belonging" and "the struggle to maintain cultural relevance in the face of gentrification" she has a bit of a point. I have lived in Key West for almost 15 years and have noticed that a lot of gay people have moved from Key West either because it does not offer them what they want in gay life or that the town has become too expensive. But every year there is a brand new bunch of gay men and women who move here for a variety of reasons including the openness and inviting atmosphere of this small little island where people are free to be who they want to be.

Key West today is certainly more gentrified than it was when I first came here as a visitor over 20 years ago. You can't stop the music and you can't stop progress. But you can pick the place you want to live and how you want to live your life. If you are gay and want to live a closeted cloistered life and deny your feelings you can live anywhere. If you want to live an open and free lifestyle your options are more limited. Like a lot limited. Key West, like San Francisco, is one of the places where it is okay to be gay. And I don't think there is a snowball's chance in hell that Key West is on the way to becoming passe`.

Won't You Be My Neighbor?

This is a very dramatic yet comfortable home set in a tranquil and private garden in the Casa Marina Area. The Von Phister Street house, designed by architect Matthew Fowler and built in 2000, has a soaring two-story living space with a wall of glass overlooking the heated swimming pool. There are multiple outdoor living spaces in the lush grounds planned by landscape designer Carl Gilley. There is a gleaming state of the art kitchen with separate butler's pantry. the master bedroom has generous closet space and a wonderful bath which passes through to a tropical outdoor shower. Floors are Egyptian limestone and bamboo. This property is being offered furnished with pieces especially chosen for this home.

The 2014 sq ft house has 3 bedrooms, 2 1/2 baths and sits on a 4488 sq ft lot. It is offered at the price of $1,595,000 or $792 per sq ft. Not a bad price. I know the house and area well since it is across the street from where I live. As I have so often mentioned the location of a house has a big impact on its value. This house is in a very good, quite area with most of the surrounding homes being of equal or higher value. CLICK HERE for more details and photos of the house.

This house is different from many Key West homes because of its avant garde architecture. It is not the typical Key West conch house at all. Instead, it is a very dramatic modern interpretation on island living. The major living areas open onto or look onto the front garden or the rear pool area. Like many Key West homes, the living area opens directly onto the pool area so it seems as though the livingroom extends to the outside. This is the kind of home empty nestor's or a gay couple would find very inviting. It has everyday utility for a couple with the extra living space that can double as guest quarters when the occasion warrants.

Give me a call at 305-766-2642 and let me show you this lovely Casa Marina Area home. Won't you be my neighbor?

CLICK HERE to preview all other Key West mls listings.

Georgia On My Mind--Key West Version

Folks who are familiar with Key West know that it has many unique neighborhoods. The Meadows area is one of those. It is located just east of Old Town and is bounded by U.S. Navy housing to the north, the Garrison Bight Marina to the east, and Truman Avenue to the south. The area is primarily made up of traditional cigar maker cottages, eyebrow houses, two story conch homes, and there is a smattering of buildings that have been condominiumized or made into apartments. There is no commercial activity in the interior parts of The Meadows, but there are commercial operations on the perimeter. I estimate that about 80% of the homes have been renovated at least once during the past 20 years. Unlike Old Town, most of the homes here are owner occupied. The streets tend to be more narrow than the streets in Old Town, so most are one way. (The exception is Georgia Street that is extra broad.)

The compound at 1110-1112 Georgia Street is a 2 bedroom,2 bath home plus a guest house cottage with 1 bedroom and 1 bath plus a detached office structure. The compound is situated on two lots and has off-street parking. Features include a bright Florida room with French doors that open onto a beautiful heated pool & waterfall. The cottage has its own kitchen & living room, tucked away with Dade County Pine walls, hardwood & tile floors and vaulted ceilings. Special details that complete the tropical charm includes brick walkways, private outdoor shower, beautiful covered porches and complete privacy with fencing & lush tropical foliage all located in a wonderful neighborhood.

This lovely 1693 square foot property on a 7197 square foot lot was just listed at $1,395,000 or $806 per square foot. CLICK HERE for more information on this home.

And if you are interested in searching for a home in the Key West or Lower Florida Keys area CLICK HERE to search our mls website. Then give me a call at 305-766-2642 to schedule a showing.






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