Real Estate Trend in the Florida Keys
The chart below shows the number of homes sold from 2002 to present, the average sale price, and the number of homes listed for sale.
| |
2002 |
2003 |
2004 |
2005 |
2006 |
2007
|
2008 |
2009
|
2010
|
|
| Number of Sales |
3089 |
3390 |
3510 |
2752 |
1500 |
1311 |
1166 |
1560 |
1782 |
|
| Aver. Sale Price |
323K |
433K |
563K |
782K |
802K |
731K |
588K |
453K |
418K |
|
| Number for Sale |
1822 |
1810 |
1818 |
3469 |
4,629 |
4585 |
4424 |
3636 |
3752 |
|
Good News for Middle Keys (Seven Mile Bridge to Long Keys) - The number of sales increased remarkably for the Middle Keys (42% more) in contrast to increases for the Lower Keys (5%), Upper Keys (13%) and Key West (9%) when comparing years 2009 and 2010.
The Winter 2011 Real Estate Newsletter from Coldwell Banker Schmitt also noted that pending sales in the Middle Keys as of 12/31/2010 were up 35%. For the Lower Keys, Upper Keys, and Key West the increases were 1%, 18%, and 14% respectively. The average sales price for the Middle Keys (478K) was up 12%. In the Lower Keys, Upper Keys and Key Wes, t this was not the case for sale prices. Prices were down 9%, 17% and 8% respectively.
The Coldwell Banker Schmitt Newsletter indicated the average sale price (ASP) for all of the Keys declined 21% in 2008, followed by a 23% drop in 2009. Though the Middle Keys showed an increase of 12% in 2010, the average for all areas of the Florida Keys and Key West resulted in a decline of 8%.
Charts in the Schmitt Newsletter show the average sale price for all of the Keys went from $246,525 in 1999 to $805,883 in 2006 representing an increase of 329% over the seven year period. The average sale price then started to decline so that by 2010 the average sale price approximates now what it was in 2003.
Not withstanding the current trend for the Middle Keys, the Schmitt newsletter suggests that the number of properties (3752) for sale must decline to between 2500 to 3000 before prices overall will increase.
Sales Price Versus List Price
Currently, low priced homes are selling more briskly than the higher priced properties. This explains the difference between the median sales price and the median list price. Coldwell Banker Schmitt Real Estate News reported that the average list price in the Florida Keys for the year 2010 was $729,381. The average sales price was $418,209. In 2006 the average list price in the Florida Keys was $983,032. The average sales price for 2006 was $805,883.
Realtors noticed a change in the year 2006. While the average sales price climbed to $805,883 in 2006, the number of sales decreased by 45%. More people put their homes up for sale. There were over 5000 properties for sale in March of 2006. The average sales price continued to increase in 2007, but sales continued to decline
A screen shot of recent median sales prices and average list prices for areas nearby to Duck Key is shown below.
On Duck Key, villas sales at Hawks Cay Village are lumped in with sales of residential homes on the island. This accounts for the lower median price in contrast to those of other Middle Keys communities.
Ownership of Duck Key Real Estate
The forces of supply and demand mean prices have fallen because there are more homes on the market than people to buy them, forcing sellers -- in this case, banks that have taken homes back in foreclosures -- to further cut prices.
On the Duck Key Online April 2011 What's New section, six homes recently sold are shown. The sale's history associated with each illustrates how home values have declined since 2006. Several of these homes were bank-owned foreclosures when sold. It would seem the selling price on these properties represents good value at this time, and people who aspire to owning a home on Duck Key are taking advantage of current low prices.
Not Risk Free
Based on property prices, mortgage rates and the median U.S. income, housing is the most affordable it has been in four decades. Nationally, the median priced home bought in 2002 and sold in 2010 saw a 4.8 percent increase in value. Historically, homes have been a safer investment than equities. The average annual gain in the past 20 years for the median priced home was 4.2 percent.
Housing is not a risk-free investmen however. Investors who purchased a property at the height of the housing bubble now own worth less than its mortgage. About 11 million U.S. homes were worth less than their mortgages at the end of 2010
Auction sign for 159 Bahama South
Auction
The home, 159 Bahama Drive South, which has been a bank-owned foreclosure since 2009 will go on auction the week on May 9 to 14, 20112.
Interested parties may bid on line at http://www.hudsonandmarshall.com/Property/Marathon-FL-33050-159-Bahama-Drive-S/76423.aspx
Agent Information
Kelly Willey
Coco Plum Realtors
305-289-2212
Auction Information
Saturday, May 14, 2011
1:00 PM
Ft. Lauderdale Marriott North
The home had an asking price of $444,900 on March 23, 2011.
This home sold for $737,000 on June10, 2003. The home was listed for sale for a time and then removed. It was relisted for sale in October of 2010 at $603,900 and the asking price has been reduced since then six times.
The four bedroom three bath home is 2,888 square feet in size and sits on four lots of 33,000 square feet. The home has a pool and tennis court.
The home's estimated valued by Zillow.com in March 2011 was $1,044,000 and tax assessor valued the home at $908,984 in 2009.
Marathon
Just south of Duck Key are the cities of Marathon and Key Colony. Pre-foreclosure and bank-owned properties shown on screen shoot.
Pre-foreclosures (P) and Bank-owned (B) in Marathon
Red houses represent homes for sale in Marathon, Key Colony, Grassy Key
and Duck Key as of December 2011
Pre-foreclosures and Bank-owned properities in the Florida Keys
Foreclosures have forced home prices down and more are expected this year. Instead of buying new houses, buyers are purchasing a home out of foreclosure from a bank. Nationally, four out of 10 sales of existing homes are foreclosures or otherwise distressed properties.
According to Lender Processing Services, around 6.9 million homeowners were either delinquent or in foreclosure proceedings through February, 2011. RealtyTrac reports that 1 in every 577 housing units received a foreclosure filing last month .
The chart below shows the number of pre-foreclosures, bank-owned and sheriff sale properties in the Florida Keys by area and zip code as of April 2011.
Area |
Pre-foreclosures |
Bank-owned |
Sheriff Sale |
Key Largo
33037 |
111 |
31 |
11 |
Key West
33040 |
148 |
43 |
14 |
Marathon
33050 |
97 |
24 |
7 |
Tavernier
33070 |
41 |
41 |
7 |
Islamorada
33036 |
36 |
8 |
1 |
Summerland
Cudjoe
33042 |
60 |
20 |
5 |
Big Pine
33043
|
34 |
12 |
4 |
There were 255 foreclosure filings in Monroe County during the months of January through March 2011, or one for every 213 homes, according to RealtyTrac. Foreclosure filings were down from the same period last year. This probably resulted due to lenders problems brought on by " robo-signing" scandal.
The National Association of Realtors estimates that 40% of existing housing that changed ownership in March 2011 were short sales or foreclosue sales. In 2010, 17 percent of the homes surveyed during the census were vacant. Some of this can be explained by vacation home occupants residing elsewhere, but the high percentage reflects a downturn in the economy for Florida.
A housing research firm, Metrostudy, reported that the median price for a house in Florida was $121,900 in February 2011. In 2006 June of 2006 the median price was $257,800. That represents a decline of 53%.
For the investor, the slack economy and low homes prices presents buying opportunities in Florida. There is no shortage of good deals in Florida.
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