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An Information Guide to Duck Key in the Florida Keys


 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

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 Property Values : Schmitt Coldwell Banker Real Estate
Are Duck Key Properties Overvalued?

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LINK ADDED April 2005 : SPRING NEWSLETTER 2006

An article by KeysSunday.com reported in November of 2005 that over a five year period the median price of a house in Key West nearly tripled. The median price increased from $332,000 in the year 2000 to $395,000 by 2002. Two years later the median price had grown to $739,000, and by 2005 the median price was $950,000.

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Average Sales Price

The average sales price for the first six months of 2005 for a home in the Middle Keys was $735,000. For Key West the average price was $953,000. The average sales prices for the Upper Keys and Lower Keys was $681,000 and $592,000 respectively.



Are prices of homes in the Keys overvalued? Are price increases sustainable? Because of the location of the Keys and the limitations placed on home building due to the Rate of Growth Ordinance it is hard to say if homes in the Keys are overvalued.

Statewide statistics show a 28 percentage increase in the median price of a home though the statewide median sales price of $241,000 for single-family, existing home is far less than than that computed for the Keys. The median sales price for Naples was $495,000 in October of 2005. In the West Palm Beach-Boca Raton Metropolitan Statistical Area the price was $416,500.

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Coldwell Banker Newsletter, "Tropical Breezes"

One of the best sources of real estate market news for the Florida Keys is the Newsletters distributed by Schmitt Coldwell Banker Realty.

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FALL 2005

The fall newsletter reports that real estate market in the Florida Keys continued to show strength. Buyer interest was strong "but the steady trends of the past few years have reversed."

The trend showed more listing and fewer number of sales. The newsletter suggests that with the added inventory of properties for sale the average number of days properties will be on the market likely will increase.

Sales numbers declined by 16% when compared to the first 6 months of 2004 and the inventory of available properties doubled.

Statistics also showed that the double digit increases experienced in recent years (an average of 28% per year from 2002 through 2004) has not been sustained. The market also shows evidence of price reductions.



The newsletter cautions sellers to be sure they have reviewed the Comparative Market Analysis provided by Coldwell Bankers . . . "sales associates to ensure a competitive “List Price” at the time of going on the market. If not, their property will languish on the market facing additional competition as more and more properties are listed."

Statistics for the first six months of 2005 when compared to the first six months in 2004 show sales numbers for the Middle Keys increasing by 6%. Sales numbers for the Upper Keys, Key West and the Lower Keys dropped 22%, 21%, 22% respectively.

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The entire Fall newsletter may be viewed at

http://www.realestatefloridakeys.com/pdfs/fall05Newsletter.pdf

 

SUMMER 2005

The Summer newsletter may be viewed at http://www.realestatefloridakeys.com/pdfs/summer05newsletter.pdf

The newsletter reported a slight decline (2%) in sales, but an increase in dollar value. There was an increase in sales over the first quarter of 2004 in the Middle Keys of 19% with declines in Key West, the Lower Keys and the Upper Keys of 7%. 7%. and 13% respectively.

The dollar value of homes increased 43% Keys-wide with values increasing 48%, 40%, 37%, and 28% respectively in the Upper Keys, Middle Keys, Lower Keys and Key West.

Sales prices continued to spiral upward with the average sale price in the Upper, Middle, and Lower Keys reaching $685,000, $680.000, $530,000 repectively. Key West's average sale price was $935,000.

The average time it to sell a house increased by six days Keys-wide and took anywhere from 139 to 155 days depending on the Keys' location.

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The Independent - Home Prices in Islamorada

The Independent newspaper which stopped publishing during the summer reported on reral estate values in Ismorada. The paper reported that home prices had topped $1 million with the average price of a home in Islamorada rising 34 percent during twelve months to $1,053,439.

Fewer homes sold though and sales took a bit longer. A realtor reported that 153 homes sold during the first six months of 2005 slightly down from 170 for the same time period last year.

Homes were on the market for 162 days during the first six month period in 2005 in contrast to 149 days in 2004.

Some facts:

Average selling price - $1,053,439
First six months in 2004 average price - $786,109.
First six months - 63 homes have sold at $1 Million or higher
Average sales price for 2002 - $500,000

Quotes local Realtor Jim Larson with Keller Williams Realty as stating,

“The Baby Boom generation is fueling the resort market which is full of tax incentives for second and third home purchases. The secondary mortgage market is now up to date and is tailor making loans for buyers. Much of their money comes by way of inheritance also.”

If you’re concerned about the “housing bubble” bursting, Larson had this to say:
“While traditional real estate markets will continue to fluctuate in value, the resort market appears to be on solid ground. Compared to other Florida resort areas I have visited recently the Keys has not yet reached it’s peak.”




NATIONAL TREND

U.S. HOUSE PRICES CONTINUE TO RISE RAPIDLY
OFHEO’S House Price Index Shows a 12.5 Percent Increase Over the Past Year

WASHINGTON, D.C. – Average U.S. home prices increased 12.50 percent from the first quarter of 2004 through the first quarter of 2005. Appreciation for the most recent quarter was 2.21 percent, or an annualized rate of 8.82 percent. The new data represent the largest four quarter increase since the third quarter of 2004, when appreciation surpassed any increase in
over 25 years. The figures were released today by OFHEO Acting Director Stephen A. Blumenthal, as part of the House Price Index (HPI), a quarterly report analyzing housing price appreciation trends.

“The House Price Index shows the rise in house prices continues at an extremely strong pace and raises the potential for declines in some areas later on,” said OFHEO Chief Economist
Patrick Lawler.

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Another source of real estate information reports seeing a decline in median home prices since April of 2005.

"Median new home prices declined for the 3rd straight month in July. Since April of 2005, median new home prices have DECLINED 14%. Prices have declined 10.5% over the last 2 months alone. The decline over the last 2 months is at a 63% annual rate. . . .


July's median new home price declined to $203,000 from June's 214,000. This was a 5.4% 1-month decline. This follows a 6.1% decline in June from May's $227,000. This follows May's 2.2% decline from $232,000 in April. The year-over-year change in new home prices is -4.0% from last July's $212,400. Adjusting for an annual inflation rate of 3%, this month's new home price would be $197,686 in 2004 dollars. This marks a -7.4% yearly decline in inflation-adjusted new home prices.


New home sales did increase for the month of July, though price reductions were largely responsible for this. However, existing home sales declined for July, bringing the annual existing home sales rate down by 2.6%. In addition, there has been a 15% increase in inventory of homes since March alone. July's increase in supply of homes marked the 4th straight month of increases in home inventories. This would be expected to sustain a continued decline in home prices.


Combining the price and sales declines with 4 straight months of home construction decline, evidence is mounting that the housing bubble is deflating. And the deflation appears to be picking up speed."

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ADDITIONAL LINKS ADDED SUMMER 2010

http://www.realestatefloridakeys.com/tropicalbreezesnewsletters.html

2010

http://www.realestatefloridakeys.com/newsletters/Spring2010NewsletterREFK.pdf
http://www.realestatefloridakeys.com/newsletters/Winter2010Newsletter.pdf

2009

http://www.realestatefloridakeys.com/newsletters/Winter09Newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/Spring09Newsletter.pdf
http://www.realestatefloridakeys.com/newsletters/Summer09Newsletter.pdf
http://www.realestatefloridakeys.com/newsletters/Fall09Newsletter.pdf

2008

http://www.realestatefloridakeys.com/pdfs/Winter_08_Newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/Spring08Newsletter.pdf
http://www.realestatefloridakeys.com/newsletters/Summer08NewsletterFINAL.pdf
http://www.realestatefloridakeys.com/pdfs/Fall08TropicalBreezesNewsletter.pdf

2007

http://www.realestatefloridakeys.com/images/winter2008.pdf
http://www.realestatefloridakeys.com/pdfs/Fall_07_Newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/Summer%2007%20Newsletter%20-%20%20FINAL.pdf
http://www.realestatefloridakeys.com/images/images/Spring%2007%20Newsletter%20-%20FINAL.pdf

2006

http://www.realestatefloridakeys.com/pdfs/Winter%2007%20Newsletter%20-%20FINAL.pdf
http://www.realestatefloridakeys.com/pdfs/spring06newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/summer06newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/fall06newsletter.pdf

2005

http://www.realestatefloridakeys.com/pdfs/winter05.pdf
http://www.realestatefloridakeys.com/pdfs/fall05newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/summer05newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/spring2005.pdf

2004

http://www.realestatefloridakeys.com/pdfs/winter2004.pdf
http://www.realestatefloridakeys.com/pdfs/fall04newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/summer2004.pdf
http://www.realestatefloridakeys.com/pdfs/spring2004.pdf

2003

http://www.realestatefloridakeys.com/pdfs/winter2003and04.pdf
http://www.realestatefloridakeys.com/pdfs/fall03newsletter.pdf
http://www.realestatefloridakeys.com/pdfs/summer2003.pdf
http://www.realestatefloridakeys.com/pdfs/spring2003.pdf

2002

http://www.realestatefloridakeys.com/pdfs/winter2002newsletterjan02.pdf
http://www.realestatefloridakeys.com/pdfs/fall2002newsletter_oct02.pdf
http://www.realestatefloridakeys.com/pdfs/spring2002newsletter_may02.pdf


 

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