Monday, January 25, 2010

How the 2009 Key West Real Estate Market Did

When ever I talk to people they always ask “how is the real estate market?” So many people have invested in or own homes and other real estate in the Key West area that it is a constant question. So here we go. At the beginning of 2009 in January we had 854 properties on the market in Key West. At the end of the year in the month of December we had 584 that is a 31% reduction. The inventory has been moving down through out 2009. This is good because a real estate market flooded with inventory is going to do nothing but decline in value. What is more encouraging is that in the month of January only 2% of the active listings sold and at the end of the year in December 5.6% had sold. The average sales price in 2009 ($458,280) was down from 2008 ($639,940) by 28.4%. Days on the market (DOM) has stayed about the same since 2007 about 171 days.

As for the upper end market there were 193 active listings over $1,000,000. 32 of them sold which is 16.5% of the total and days on the market were less then the over all, only 135.

Monday, January 11, 2010

New lease on life

Just read about a guy that got a new lease on life. For the longest time I thought that saying was a new "leash" on life. The new leash idea evokes a picture of lassoing life with a leash and reeling it back in. I like the lease thing better. It reinforces the idea that we are tenants on the planet for a temporary term. Our lease will end at a certain time, but then occasionally we get an unexpected windfall, an option to extend. Let's all enjoy our current leases to the fullest!

Monday, January 4, 2010

REDUCED!!! Charming Key West Apartment Building

Charming Key West apartment building at the foot of Margaret St only one block from the waterfront of the Historic Seaport District.Four legal units generates aproximately $4,900 in gross rent. 4 electic meters and 1 water meter.

Golfing and Real Estate

Not really sure this is the right title for this blog, but I find dry titles make what I have to say less interesting to a prospective reader then what it really is. Golfing is fun and a sport. You wear oxford type shoes with little nails on the bottom to play. What does golf have to do with real estate? You ask yourself that question and want to read on to see just how it does. A local developer named Pritam Singh, Aka Paul Labombard developed the property surrounding the Key West Golf Course in 1995 and appropriately named it The Key West Golf Club. The new owners did not really belong to a club that golfed together they just had their new homes located around the greens and fairways of those who did and shared in common that having a golf ball hit your house or land in your yard was "par for the course", pun intended.

Once again I am going to look at a local community to extrapolate what could be a trend for the Lower Keys. We have a flipper! Remember in about 2003 we all learned the new word as it applied to real estate, "flipping" and one that did that was a "flipper"? Well when the market was going up soooo fast it was lucrative to buy a residential property totally on speculation with the intention of selling it very quickly at a higher price after closing or even selling the contract before closing and then you had "flipped" it. Flipping is back at the Key West Golf Club. 66 Merganser, bought on December 14, 2009 for $170,000 as a short sale came back on the market on December 23, 2009 for $217,400, according to the information in the Key West Board of Realtors. It has not gone under contract yet, but it has a good chance to. There is very little for sale in this price range. As a matter of fact there is only one other unit under $345,000 that is actively on the market for sale and it is a short sale with extensive water damage and an accompanying expensive mold problem to cure all at the buyer's expense. This property is being offered at $192,500 and has been on the market for 433 days. I suspect that in the time it takes for the bank to approve a short sale (maybe 6 months) there could be quite a bit more green/black fuzzy growth.

Stay tuned we will see what happens.