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An Information Guide to Duck Key in the Florida Keys


 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

Real Estate News and Foreclosures in the Florida Keys and Key West - January 2008

Below is a screen shot showing some of the locations of preforeclosure stage properties in Key West according to RealtyTrac.com.

Because of the credit crisis foreclosured properties are often bid on by the bank holding the property mortgage and then held by the bank for sale. A second image below shows bank owned properties in Key West which are for sale.

Preforeclosure stage

Bank Owned

 

A listing at Foreclosure.com shows 351 foreclosure properties in Monroe County, Florida.

 

FORECLOSURES AND EVICTIONS IN MONROE COUNTY

YEAR 2005 2006 2007
Foreclosure cases 617 1305 approx. 2000
Evictions 520 540 544

 

A recent article in the Keynoter documented the sharp rise in foreclosures in the Florida Keys brought on by the current mortgage crisis in the United States. More foreclosures are expected according to Assistant Monroe County Property Appraiser Karl Borglum for the year 2008.

In Monroe County, for the first 11 months of 2007 foreclosure filings are up 53 percent compared to all of 2006. The chart above shows that near 2,000 foreclosures were filed by November of 2007, which is 695 more than the 1,305 foreclosures filed in 2006.

Florida’s foreclosure rate has been pushed to new highs by the slow housing market , and changing mortgage rates which continue to reset to higher monthly payments.

In Miami-Dade County, 20,475 foreclosures have been filed — in Broward County, 20,812 foreclosures have been filed.

Florida together with California accounted for near 34 percent of all subprime adjustable-rate loans that entered the foreclosure process in the third quarter. Florida and California also represent about 42 percent of all "prime" adjustable-rate mortgages that started the foreclosure process.

 

Duck Key Inventory

An abundance of inventory - For every ten homes on residential Duck Key approximately one in ten was for sale this January 2008. Just a few years ago there were only a total of ten residential homes on the market and realtors complained that too few home were available to show interested buyers. Now it is a buyers' market with home owners competing with bank owned and foreclosed homes and short sales. Two residential properties on Duck Key are currently in foreclosure.

On the commercial Indies side of Duck Key one in every eleven villas and condos was for sale this January 2008. Word has it that more than fifteen properties are in preforeclosure. Fewer villas are for sale now than previously as many owners have pulled their properties from the sale listing. Some are listing their property exclusively with a realtor so they do not appear on the multiple listing service.

One in eleven properties may seem like a lot, but down the road in Marathon, Tranquility Bay Beach House Resort had 24 out of 87 units for sale this past January. That's more than one in every three Tranquility properties for sale.

 

Florida Keys Real Estate News

The chart below showing the imbalance between inventory of all homes for sale and the number sold has been updated to reflect 3rd quarter statistics .

  end of 2002 end of 2003 end of 2004 end of 2005 end of 2006   2007 Sales as of 2nd quarter

2006 Sales as of 3rd quarter

2007 Sales as of 3rd quarter
Number of Sales 3089 3390 3510 2752

1500

  767

1208

1068
Aver. Sale Price 323K 433K 563K 782K

802K

  746K

800K

744K
Number for Sale 1822 1810 1818 3469 4,629   4559

4337

4349

Days to Sale

161

140

154

190

228

Data from the Fall 2007 Tropical Breezes Newsletter comparing the first nine months of 2006 with January through September of 2007 -

show that 12% fewer homes were sold Keys-wide,

and 25% fewer homes were sold in the Middle Keys ( Seven Mile Bridge to Long Key).

In looking at the data for the 2nd and 3rd quarters of 2007, one can see the decline in sale price and the number of sales is leveling off.

Keys-wide the average sale price of all properties was $774,000. Homes are currently selling on average for $58,000 less than the average price of 2006.

 

The Fall 2007 Tropical Breezes Newsletter also shows a comparison of sales of Single family Waterfront homes versus Non-Waterfront Homes. Waterfront homes (1104 were for sale as of September 2007) represent about 23% of the total inventory of all homes for sale. In the Middle Keys there were 50 waterfront properties sold through september for 2007. That represents a 25% increase over the 40 one family waterfront sold in 2006.

The average selling price for a one family waterfront home was $1.1 million while the average sale price for non-waterfront homes was $546,000.

 

 

Florida and Nation - Mortgage Bankers Association’s quarterly delinquency survey.

For the state of Florida, new foreclosures filed in the three months ending Sept. 30 for all types of mortgages rose 49 percent from the previous three months to 1.09 percent, up from .73 percent of all outstanding loans, according to the Mortgage Bankers Association’s quarterly delinquency survey.

And the number of loans already in the foreclosure process jumped 54 percent from 1.42 percent to 2.19 percent of home loans during the same period. Hardest hit were borrowers with subprime loans, or loans offered to people with limited credit histories or lower credit scores.

Nationally the percentage of all mortgages nationwide that started the foreclosure process jumped to a record high of 0.78 percent in the three months ending Sept. 30 up from 0.65 percent set in the prior quarter.

In the 3rd quarter, the delinquency rate for all mortgages climbed to 5.59 percent, up from 5.12 percent in the second quarter and was the highest since 1986, the Mortgage Bankers Association said.

 

Dade and Broward Counties - Center for Responsible Lending report

A report released by the Center for Responsible Lending estimates that Dade and Broward counties will lose more than $17 billion in their tax base in the coming years resulting from the thousands of foreclosures among subprime borrowers. Why a lose in tax base? The report asserts that foreclosures in South Florida will cause property values of nearly 1.7 million homeowners to drop.


Just North of the Keys in Miami

Tampa and Miami led the nation in September 2007 in the decline of the value of sales of existing homes from 2006, according to an analysis by Standard & Poor's. The market average decline for Miami was 12.4 %.

Mike Colpitts, the Editor of Housing Predictor, thinks the Florida real estate market has been in a recession and Miami is the "epicenter of America’s housing crisis. Values have fallen by as much as 40% already and more deflation is in store for the market."

 

Housing Predictor states

"Thousands of new condominiums, which were under contract to buyers have been stalled or had construction cancelled. Untold thousands of would-be buyers left deposits of 20% and higher with developers instead of closing on their units. Miami has turned into a multi-billion dollar bust. Developers are offering incentives to perspective condo buyers, but buyers, uncertain or nervous about the economy are rare in Miami these days. Housing Predictor forecasts the market will worsen through 2008 deflating an additional 15.2% on average in value".

 


For Florida real estate predictions visit http://www.housingpredictor.com

 

LINKS TO PAST REAL ESTATE NEWS FROM DUCK KEY ONLINE

September 2007 Real Estate News - Facts and figures on residential home sales. (Duck Key trends, Florida Keys, Tropical Breezes, Foreclosures, Economic trends in Monroe County)

Price Declines - Buy High, Sell Low - September 2007

For more go to Real Estate News - May 2007 - Facts and figures on residential home sales. (Duck Key trends, Florida Keys, Tropical Breezes, Economic trends in Monroe County, Real Estate Bubble)

Florida Keys, Key West and Duck Key Real Estate News 2006

Duck Key Real Estate News - Summer 2006 - The Monroe County Online Data Center

Monroe County Records also provides Maps of Duck Key presenting a visual representation of real estate sales for years 2002, 2003, 2004, 2005, and 2006.