Single Family Homes Prices Rise 25% in One Year
Real estate in Key West isn’t just finding a foothold in the new housing recovery – with local single family home prices are now up more than 33% since 2009, the market is standing strong.
Recently dubbed the “Launch Pad for the U.S. Housing Recovery,” Key West, Florida not only boasts an upward swing in home prices but demonstrates a continued and sustainable rate of growth, signaling a windfall in equity to come for those buying homes in the Southernmost City today. Recent news coverage has highlighted not just the size but breadth of the housing recovery in what is regarded as one of the world’s premier tropical vacation destinations. Housing inventory levels here have fallen fast and with single family home sales up 25% since last year according to the latest stats from the local Realtors’ association properties are selling in record time.
Just How Fast Are Key West Home Prices Rising?
According to the Key West Association of Realtors’ data the area saw average home prices dive from a high of $922,000 at the end of 2007 to a low of just $527,411at the end of 2010.
However the real turn around came last year with the July 2012 Key West Statistical Analysis showing the average selling price springing up dramatically from $523,453 in July 2011 to $697,913 at the end of July 2012. That’s a 33.3% lift in 12 months.
This also puts Key West home values back at 78% of their peak highs of 2007, a minimal variance considering some other U.S. cities are still wallowing at real figures of 40% of their peaks. This means few Key West homes are “underwater” and indicates stability in a market which will continue to perform well throughout any future ups or downs in decades to come.
The Future of Key West Real Estate
While the debate over the state of the housing market in other parts of the U.S. continues to rage it is clear that Key West is not just not on firm footing but continues to demonstrate solid growth. The spread of the recovery may not be as fast as some homeowners may wish but this is also crucial for a sustained and sustainable rebound which will last.
It is true that all real estate is local but Key West has a lot going for it. It may have been one of the first to bottom out and begin to rise again but there are many factors which promise to secure on ongoing upward trend in local home values and appetite for buying. It may just be a matter of whether there is sufficient supply to fill all of the demand coming in. Key West continues to be one of the most well-known and popular tourist destinations on the planet, as well as an exclusive haven for a long list of famous residents from athletes to actors and artists.
Though beyond its unrivaled beauty and natural attractions the region’s fame as at great place to invest in real estate is likely to only drive more investment from across the country and abroad, especially as homes here remain far more affordable than at home for those from Canada, Europe and other countries.
Florida’s economy is also much stronger than most realize with Governor Rick Scott recently quoted as saying “Our state is doing extremely well”. In fact, Florida has been recently ranked as the 2nd best state for doing business and boasts the second biggest drop in unemployment over the last 18 months. Most people are also unaware of just how grounded the state’s economy is in agriculture and mining as well as being one of the leading regions for high-tech jobs and software programming. This together with the new expansion of the Port of Miami foreign trade zone has led to forecasts of even stronger jobs figures and GDP growth for the coming years.
Based up upon historical real estate cycles this puts Key West on the verge of a new boom period with positive growth for the next 10 to 15 years. This also dictates that local home values will easily surpass the previous high of 2007 at $922,000, making it a sound investment for new residences, vacation homes and investment property.