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An Information Guide to Duck Key in the Florida Keys


 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

In a related web page about real estate prices on Duck Key and the Florida Keys,  the rising home prices in the Florida Keys were shown. See (keys_real_estate_2005.htm)

 

AVERAGE HOME PRICES IN THE FLORIDA KEYS*

2001 - $285,840

2002 - $323,000

2003 - $424,000

2004 - $557,000

 

Prices in the Florida Keys and Key West are not unlike another real estate "hot spot" found on the very trendy East End of Long Island. Soaring house prices, a shortage of land, and a lack of low cost and moderate price housing are similar for the Florida Keys and the Hamptons of Long Island.

The reader could substitute "Florida Keys" in place of the words "East End" and think they were reading an article published in the Florida Keys Key Noter or Key West Citizen.

 

A New York Times article dated February 13, 2005 reports that house prices are "bolting into the stratosphere." So high are prices that the town is unable to assist in the purchase of houses for "affordable housing" use for qualified buyers. The Times quotes various realtors,

"The East End and East Hampton in particular have lost gravity."

"Whatever goes up, goes up, up, and further up."

"The land has gone. There is no land. It's simple supply and demand. With a small and eventually nonexistent inventory, if I've got it and you want it, you're going to pay whatever I tell you. And unlike Florida and most of the United States where you can go north or east or west, there's no where else to go in the Hamptons. We're surrounded by water."

 Buying a house is approaching "Mission Impossible"

". . . eighty percent of the year-round residents on the East End (of Long Island) could not afford the house they are living in now".

". . . exodus of young people to hire."

". . . small business owners can't find people to hire."

"School districts are having a harder time finding teachers because they can't live here."

" How are you going to find people to work on Main Street if they can't find a place to live?"


The chart below shows sales price for single-family home in East Hampton, New York, a real estate hot spot not unlike the Florida Keys and Key West. Inflation adjusted median home sale price in East Hampton Town rose from $274,000 in 2000 to $625,000. in 2004. The median price for a home in the Keys for 2001 was $285,840. By 2004 the median price was $557,000.

 

Median Price Chart for EastHampton East End 1994 to 2004

 

ELSEWHERE IN THE NATION

The New York Times of March 1, 2005 reports that a "Boom in Prices Brings Investors to Home Sales".

The article quotes sources as stating ,

"in Miami the figure is 11 percent" for mortgages taken out by speculative investors who did not plan to live in the houses themselves. Other real estate spots which are "white hot" are San Francisco with 8.5 percent, and Pheonix with 12 percent.

What is causing this rush into real estate as an investment? Investors are piling into the market because of past price rises and anticipated future sales price rises. In the hot realty market of Los Vegas the price of a median home between the fourth quarter of 2003 and 2004 increased 47.3 percent. In Sacramento the price increased 31.5 percent. In San Diego the increase was near 25 percent.

In Florida the Tampa-St. Petersburg area showed a 14.6 percent increase, and in central Florida Orlando's prices increased by 21.7 percent. Prices increased over 25 percent for both Miami and the Fort Lauderdale areas.

 

 * - Source -Tropical Breezes Newsletters

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