Real estate news: Key West sales up for 63 months!

This is an eye-opening real estate story out of Key West. A certain person in the City of Lake Worth has published all kinds of reasons for moving from Key West. Most of you who follow this blog know who I'm talking about. Take this excerpt, for example:

Key West has the largest collection of pretty historic homes that I've ever seen, and a number of other preserved historic buildings like the San Carlos Institute on Duval Street. But it also has sold out in recent years to developers and to the cruise ship industry. Thousands of cruise ship passengers flooding a small downtown tends to change the feel of things.

[and . . .]

I've lived in Lake Worth since 2010, when I moved here from Key West. I was the deputy editor of a terrible little newspaper there, a job that tied me down to an ugly office in a strip mall next to a Ross store. And that's about all I have to say about Key West. . ."

Key West isn't a city where you move to get a job unless you have access to wealth. For many reasons, including the favorable tax structure in Florida, Key West has become a city where people with wealth go to live; much like the Town of Palm Beach but with a funky vibe. In Key West you can be rich and cool at the same time.

The reality in Key West now is this: you can work there but if you don't have access to wealth it is very hard to live there. Many people commute to their jobs from other keys and even as far as Homestead I've heard.

Check out this information from John Parce at his real estate blog:

     Old Town sales of single family homes continue a steady climb. Number of Old Town homes sold this quarter (46) is up 24% over the 1st Quarter of 2014 and the highest recorded [emphasis added]. (The average sale price of $978,000 is 7% less than 2014, 3rd highest since 2008). Average number of days to sell varies by home type but is generally taking longer as sellers set their price ahead of buyers' desire to pay, especially for larger homes.

[and. . .]

     Five, 1Bed/1Bath homes have sold in the Old Town area thru 3/31/2015. The average sale price of $539,000 is 21% above the average sale price for 2014. In 2014, eleven 1/1 homes sold, the most since 2010! Buyers are very choosey about buying smaller Old Town homes. The average size of the five for sale is 814 sq.ft., 31% larger than the 2010 - 2014 average. Yet, the average sale price of $636,000 is 70% higher, than the 2010 - 2014 average of $375,000.
     Six, 2Bed/1Bath homes have sold in the Old Town area thru 3/31/2015. The average Sold price of $459,000 is 2% less than 2014 which was 13% more than in 2013. Six 2/1 homes are for sale with prices from $499K to $822K. Fifteen 2/1 homes sold in 2011, sixteen in 2012 and twenty-one in 2013 but only fourteen in 2014! Why? Overpriced. Even so, since 2009, 2Bed/1Bath homes have been the 3rd most popular selling home in Old Town.

Can you imagine? An average sale price of $539,000 for a home about 814 square feet. The point is this, residents moving out of Key West aren't running from cruise ship passengers or "evil" developers. Key West has become a haven for people of wealth. Mr. Parce concludes with this:

     The year before Presidential elections is traditionally an up year for the markets as incumbents pump the economy. Since many buyers of Key West real estate rely more on wealth than income, this should be a good thing. Additionally, boomers and near-boomers continue to buy second homes that serve two purposes; a balancing element to their investment portfolio and a second home to which they can eventualy [sic] migrate and convert into their primary home (in a no personal income tax state!).