Cost of Florida Keys homes soar 32%
Keys Treasures
the first nine months of 2004 compared to the same period a year ago,
according to figures compiled by Brian Schmitt, broker for Coldwell
Banker Schmitt Real Estate Co.
That figure, if annualized, would place the increase in home prices for
2004 at 42.7 percent, not an unreal figure according to other realtors.
"We've expected an increase this year in the neighborhood of 40
percent," Michael Barr of Marr Properties said. The average sales
price of a home, according to Schmitt's computations, has risen to
$557,000 compared to an average sales price of $424,000 at the end of
September 2003. Key West saw an increase of 34 percent in home prices
to an average price of $742,000 - highest in the Keys.
The Lower Keys saw the biggest percentage jump in prices at 38 percent.
The average sales price of a home in the Lower Keys was a bargain
$412,000 compared to other areas.
In the Middle Keys the average sales price of a home rose to $565,000,
an increase of 30 percent over September of 2003.
The Upper Keys saw an increase in sales prices of 26 percent. The
average price of a home sold in the Upper Keys was $482,000.
During the first nine months of 2004, the total value of all homes sold
in the Keys was $1.57 billion, an increase of 43 percent over the value
of all homes sold during the same period a year earlier.
A total of 2,818 homes were sold during the first nine months of 2004,
an increase of 7 percent over the same period in 2003.
The Upper Keys had the most sales, 965, an increase of 13 percent over
2003; followed by Key West with 826, up 11 percent; the Lower Keys with
556, down 1 percent; and the Middle Keys with 471, up 1 percent.
With brisk sales inventories dropped 1 percent countywide. The Upper
Keys saw a drop of 22 percent in the number of homes for sale; bringing
down the increase shown in the other four areas of the county. Key West
had an increase of 8 percent in the number of properties for sale
during the first nine months of 2004, the Lower Keys had 11 percent
more, and the Middle Keys has 22 percent more during the first nine
months of 2004 compared to the same period in 2003.
"As expected in such an active market the days to sell continues to
decline with the exception of the Upper Keys which increased slightly,
up 2 percent to 155 days," Schmitt said.
"The Lower Keys has the lowest period to sell of 121 days, down 17
percent over 2003. Key West's number of days to sell dropped the
most, 34 percent to 135 days, with the Middle Keys at 142 days, having
declined 17 percent. Overall the average of 140 days is 13 percent less
than the 161 days of the first nine months of 2003."
Schmitt said, "The market was slightly slowed by the numerous
hurricanes that threatened the Keys during the third quarter this year
... with the election over and interest rates forecast to remain
favorable we anticipate demand for all types of properties through the
Florida Keys to remain strong."
Since 1998 the average sales price of a home in the Florida Keys has
jumped 141 percent from $231,897 to $557,128.
Over that same seven-year period the number of days it takes to sell a
home in the Keys has declined by 42 percent from 241 to the present 140
days.
At the annualized rate for 2004, the number of properties sold has
jumped 68 percent over the past seven years and the the number of
properties placed on the market has increase 39 percent, according to
Schmitt's figures.
National Association of Realtors Chief Economist David Lereah predicts
the current real estate boom "will not bust ... you need a bubble to
bust and, except for a few local markets, we don't have one."
ACO1
Keys Treasures
The Porter-Wagor-Russell company took out building permit for 20 CBS
homes on Harris Avenue and Sunset Drive between Ninth and Tenth Street.
The permits were for 11 homes at $10,000 and 9 at $11,000. The higher
priced residences had carports.
Other building permit issued for new homes were: George Almeda $8,000
at 1707 George, Eugene Baker $8,000 at 1708 Laird, Howard Sanchez
$8,000 at 1721 Rose, I Bush $9,000 at 1601 Patricia, E. Hopkins $9,000
at 1626 Rose, H. Cerezo $8,000 at 1608 Rose and W. Bethel $9,000 at
2319 Harris.