Key West Real Estate Sales Report - June 2018

I took the above photo a few years ago. It shows the sleek metal spiral staircase in a modern addition to an historic home in the Old Town Key West. The photo is a bit symbolic of real estate prices in most parts of the county which go up and down. I have been selling real estate in Key West for the past twenty-two years where, save for the 2008 Recession and a couple of years thereafter, real estate prices have gone up an average of ten per cent or more each year.

I have become more and more pessimistic by the ever-increasing cost of housing in Key West. My business is down as there are fewer buyers for reasonably priced second homes. The fewer listings has made some sellers less willing to bargain.

Several months ago readers of my blog invited me to listing their house for sale. I knew the property because I wrote a blog about it when it was then for sale and showed it to several potential buyers. It had a few "issues", but it also had a terrific location and all that charm so many buyers want. The current owner bought the place and did a thoughtful and stylish renovation. I the asked the gent if he had a price point in mind. He deferred and asked me what I thought. I don't dillydally. I reminded him he paid top price per square foot when he bought the house and replaced things all houses have. I told him my suggested price which was a bit more than the average ten percent appreciation houses achieve year over year in Key West. He thanked me for my time and said they know the market and think their renovation commanded a higher price. That "seller" then listed the house with the agent who sold it to them. The price was in the stratosphere. The house did not sell and the listing was cancelled after a couple of months. This "seller" is not a lone wolf. There are a lot of sellers like this in this market right now or who cancelled their listings rather than sell at a discount to their perceived value of their property.

I performed a simple search of single family home sale in the Old Town and Casa Marina areas by number of units sold, average price paid, and price per square foot for the seasonal time period of  January 1 to June 1 for each year starting in 2013 through 2018.  I knew prices had risen dramatically but suspected sales would there would be fewer sales in each area in 2018.

CASA MARIA
 

Year	No of Sales	Avg Sale Price	Price Per Sq Ft
2013	7	1594687	581
2014	11	1660785	657
2015	8	1452000	704
2016	8	1591875	711
2017	8	1804000	693
2018	7	1413333	728

 Current Inventory of Unsold Single Family Homes on the Market
                                          8            1786250                      858

 OLD TOWN

Year	No of Sales	Avg Price	Price Per Sq FT
2013	62	688	479
2014	45	984	601
2015	73	952065	633
2016	38	926	660
2017	46	992965	700
2018	40	1257904	789

Current Inventory of Unsold Single Family Homes on the Market
                                               64        1659347                     836


I wondered what happened in 2015 that may have attributed to the higher than average sale. I went to Google which led me to a Washington Post article. One item stuck out:

The Fed raised interest rates, marking the end of an era
The Federal Reserve's rate hike in December was notable not for its size -- the federal funds rate increased by a tiny one quarter of a percentage point -- but for its symbolism. It was the first rate hike in more than a decade and a sign that some of America's most prominent economic thinkers believe the economy is once again sound, roughly seven years after the onset of the global financial crisis.

I added the emphasis at the bottom of the above paragraph. Remember during the 2008 presidential campaign when the US and world economy took the huge tumble. The Key West market was hit very hard because a lot of our houses are second homes. A lot of the sales preceding the 2008 tumble  were financed with little money or no money down.  Those owners/buyers had no substantial stake in their "investment" property in Key West. Many of those owners abandoned their properties which were then sold at a discount to prior year cost. Buyers who bought homes in Key West during the next few years should have received substantial appreciation on their properties. Later the FAKE NEWS about the BP Oil Spill spewed from CNN and the Weather Channel. The spill happened, but it did not affect the Keys. But the noise impacted our tourist and real estate market for two years. Our local economy steadily recovered as did the national economy. Unemployment decreased, the stock market and optimism increased, and America was back on the right track again.

I am a firm believer that the FAKE NEWS spewed by CNN about Hurricane Irma's predicted devastation of Key West and the images of real destruction in the Lower Keys has done substantial damage to our tourist economy and is partially responsible for the lower interest in buying in Key West. Most of the damage that occurred in Key West was the loss of our canopy trees. Many like the above tree on Flagler Avenue uprooted and fell to the ground. Trees were down everywhere. They damaged roofs, fences, cars. We lost one house where two trees fell onto the porch. The damage was so severe that house did come down. That one house.

Realtors gossip just like everybody else. The honest ones will tell you their business is down from prior years. I am doing okay, but not as good as I did in previous years. Also, nearly every buyer asks me about Irma, flood elevation level, and the cost of flood and wind insurance. There is a constant pessimism over the risk of buying here.

Before I moved to Key West I had thought of buying a place in Laguna Beach. I love that little town.
I was staying at the Newport Hyatt in June 1992 when the 7.3 magnitude earthquake hit. The building shook and shook and shook. About an hour later I was sitting on the balcony with my legs up on the railing when a huge aftershock occurred. It was so strong that I fell on yo the floor. That sounds funny now but it wasn't then  That quake caused me to re-evaluate any thought of moving there. It was my Irma moment.

There will always be earthquakes in California and there will always be hurricanes that hit someplace in the United States Some are worse than others. And New York City and surrounding areas will be freezing cold in the winter and hotter than hell in the summer.  This is life. Where you decide to live it is up to you. I prefer living on a little island out in the middle of the ocean  The sales numbers don't affect me as much as the traffic.

1319 Eliza Street, Key West - Elegant Transformation

Older readers of today's blog will surely remember Eliza Doolittle from My Fair Lady where a cockney flower girl was transformed to elegant lady.  That is exactly what occurred at 1319 Eliza Street in Key West. Two unassuming cigar maker cottages were thoroughly renovated and bridged together to make one elegant 1547 square foot home in the Bayview Park District.

To prove my point  I dug into my old shoebox and found photos of the two original houses taken about fifty three years ago.  The photos show the clean lines even back then. Note that 1319 Eliza Street is a corner lot. The other house was previously identified as 1317 Eliza Street.  Both now share the 1319 Eliza Street address. Notes on the back of each photo says the houses were built in 1906.

If you look at the old photos you can appreciate the creativity of the new design and all of the hard work that went into the reinvention of space and thoughtful use of construction elements. The old piers were replaced; new wiring and plumbing installed; and new roofs attached. Both historic homes had sawtooth additions. The sawtooth at 1319 Eliza is now the kitchen. The sawtooth at 1317 Eliza appears to have been expanded into a much larger space that is now the living and dining area that spans and connects the sister houses. Let's take a look at the modern interiors and the gorgeous sunny pool.

When guests enter this home for the first time they'll be impressed. What looks so demur is pretty impressive. The renovation not only joined the houses but uplifted the living spaces by vaulting ceilings where possible. I often tell my tall buyer clients that they won't fit in some of Old Town cottages where ceilings are not that tall. That will not be a problem here.

The "old" kitchen, which was anything but old, was replaced by a sleek new kitchen with stainless steel appliances, a farmer's sink, island with marble top, and chic lighting fixtures that give the space a special punch.

The new addition bridges the two original houses so that they become a much larger and more functional single family home. The kitchen, dining, and living room spaces each have sets of French doors that look out to the new pool. During the daytime the kitchen, dining area, and living room are flooded by light from the north. It's still bright but not glaring hot light. The French doors allow our warming fall, winter, and spring fresh air to flow through the house in the daytime and night. Remember, we are located in a sub-tropical climate.

The original house at 1317 Eliza is now the master suite which is entered by the hallway off the living room. The Dade County Pine walls and ceiling were white washed and give this space a really special look.The ceiling was vaulted and new a new classic bath added. This bedroom is separated from the two guest bedrooms located in the other building. Talk about privacy! Guest will see shades of Eliza Doolittle at every step. 

The original house at 1319 Eliza Street was re-invented a bit differently. The Dade County Pine walls in the front bedroom were exposed and sealed. The original front door now opens to a private porch to watch nothing happen. This a quiet location just a three blocks east of Old Town. Guests will be so envious! They'll start calling their money guy trying to figure how to buy this or some other place in Key West. The walls in the second bedroom are painted white.

None of the neighboring properties have a view into the pool.  The space is bright and open. Parking is located to the back of the view above. This home is offered "turn-key" at $1,575,000. CLICK HERE to view the Key West MLS datasheet and listing photos. Then please call me, Gary Thomas, 305-766-2642 to set up a private showing of 1319 Eliza (Doolittle) Street, Key West. She's an elegant lady and I am buyer's agent at Preferred Properties Key West.

Key West Realtor Caravan: What Were They Thinking?

The Key West real estate  "selling season" starts just before Christmas and ends in late May. During that time the Key West Association of Realtors hosts twice monthly Realtor caravans to showcase new MLS listing to local agents. Agents are bused from house to house to see new listings. Agents who own Range Rovers, Bentleys, and Teslas drive their own vehicles. #TRUE


During a recent Realtor caravan I overheard a female agent remark "What were they thinking?" as she looked out to the pool area.  The Midtown house was well over fifty years old and looked every bit its age. It was vacant and smelled a bit moldy. The back yard and pool area was a mere 30' X 30' which included the 10' X 12' pool. The remaining outdoor area was entirely covered in concrete. The space was surrounded by walls on three sides and a six foot tall concrete block fence on the fourth. There were no palm trees or other greenery of any kind. You could see palm trees from the property on the other side of the fence, however.

The owners were asking more than a million dollars for this house. I suggested the listing agent buy  Emergency Moustaches to be worn when showing this place. #DIVERSION #EMERGENCYMOUSTACES #CONCRETEMESS

715 Frances Street, Key West - Quintessential Eyebrow House

If you are a longtime and loyal reader of this real estate blog, you may remember that I have written several blogs about 715 Frances Street several times over the years. It is one of the most visible of all the eyebrow houses in Key West. It was built circa 1896 and has been renovated to some degree by each of the recent owners. The current owners have done a masterful job in editing and refining prior renovations and adding their touch to make this home a genuine gem. This is not real estate mumbo jumbo.  Let's take a look at what this home looked like before:

The listing Realtor describes 715 Frances Street this way:

"Located on one of the most desirable streets in Old Town Key West, this classic Eyebrow house is the epitome of historic luxury renovation. From the traditional charm of Dade County Pine to the modern gourmet kitchen, this home combines the very best of both worlds. Featuring professional grade appliances, hand-crafted Amish-built cabinetry, and quartz counter tops, the kitchen is built for the discerning master chef. Adjacent is a spacious dining area with vaulted wood ceilings and a custom built-in bar. The floor plan flows to a tranquil backyard, with covered seating and entertainment area, pool, spa, outdoor shower, and mature landscaping. 3 en-suite bedrooms guarantee comfort and privacy for all. With off-street parking and proximity to the Historic Seaport, this home truly has it all."

The house now has 1890 sq ft of interior living space including a good sized first floor bedroom with en-suite bath, living room, custom kitchen, and dining area. Upstairs there are two bedrooms each with en-suite bath. The current owner removed a fairly recent and quite expensive kitchen only to replace it with one that was larger, better equipped, and which opened out to the stunning new backyard with pool and outdoor living area. The main floor bedroom and bath were re-crafted into good usable space.

Upon arrival first time guests will know this is an old home by looking at the Dade County Pine walls and admiring the old staircase. They will also see a spectacular kitchen located to the right rear where French doors open out to the pool and back yard. The new dining has windows on three sides. The first floor bedroom and bath are located just to the right of the entry door  This owner re-did each of the existing bathrooms and added a new guest bath which is located off the veranda at the rear of the home.

Built-in closets and a new bathroom made the above second floor north bedroom so totally livable now as compared to prior versions of the same space. Natural light in the bath is just incredible. The views off to the east are of tree tops, not nosy neighbors with telescopes.

The bend in the front roof eave is evident in the photo two above. The south bedroom has closets on either side of the window. A new shower is recessed inside the wall above where there is a window. The bathroom works.

A prior owner added the pool and spa. This owner redid the veranda and added a guest bath on the far side. The landscaping is maturing nicely. Not having some big old house to the rear means this house has privacy. Look at photos in the link at the end. You will see an outdoor shower tucked away as well.

CLICK HERE to view the Key West MLS datasheet and listing photos. Then please call me, Gary Thomas, 305-766-2642, to schedule a private showing of this beautiful home. I am a buyers agent and a full time Realtor at Preferred Properties Key West.