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The buzz words lately in the real estate market are ‘low inventory’ and ‘prices going up.’ The markets in Key West and the Lower Keys seem to still be reflecting what the rest of the country is seeing. Looking at the statistics from Key West Association of REALTORS for the month of August, 2012, we see that the median selling price of single family homes in Key West is up to $618,000 from $450,000 last year. The Lower Keys median selling price is also up in August, 2012 at $410,000 from $390,000 this time last year.
In comparison, active listings in Key West are down from a high in February, 2012 at 448 to a low in August, 2012 at 339. The Lower Keys show the same type of information. The number of active listings peaked in February, 2012 at 102 and is down now to only 65 in August, 2012. That is roughly a 75% drop in Key West and 63% drop in inventory for both locations.
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According to our graph, we see that the number of homes sold in both areas is also up from this time last year, giving credence to the fact that inventories are dropping and prices are up. So what does this really mean for the prospective home owner or buyer? The answer is the same as we have been saying for the last few months, if you are a buyer, now is the time to buy. If you are a seller, you are going to have to make the choice of selling now and capturing a bit higher rate for your property, or take a chance and see if conditions will continue to possibly get an even higher rate.
Another fact that we all need to take into consideration is that, for the time being, interest rates are still low, but the Federal Reserve is talking about taking more aggressive action in the economy, and this may mean that the interest rates will be going up in the future.
So, with low inventory and higher prices, I can still help you find some that will not only fit your budget, but help you enjoy a little piece of paradise, and whether you’re a tourist, looking to move permanently to the Keys, or just someone who likes the beauty of nature, the great variety of amenities in the homes in our area are just more reason to want to live in beautiful Key West. If you’re interested in real estate in this attractive area, contact me, Jimmy Lane, at Key West Real Estate: 305-766-0585.