Throughout its colorful history, Key West has made its own rules and often bucked national trends in many arenas. One of the most notable examples today is the Key West real estate market.

Each year hundred of the nation's affluent flock to the fabled island city to buy homes, lured by the charm and weather that make Key West such a special place to live. But the one thing the island cannot offer all newcomers is more land and housing choices. With such a small reserve of properties and such a huge demand, the market is stable and climbing, virtually immune to outside influences.

The following figures, derived from sales recorded with the Key West Board of Realtors, reflect the Old Town market. If private transactions were included, the figures would show an even greater annual increase in property values.

In 2002 there were 180 single-family homes sold in Old Town. Over 40 percent were priced under $400,000 and approximately ten percent were priced over $1 million. Of the 171 single-family homes sold in 2003, less than 15 percent were listed at under $400,000 and more than 18 percent were over $1 million. During the first two months of this year, the under $400,000 market (primarily renovation projects) has held at approximately 15 percent, while the $1 million-plus market has increased to just over 30 percent.

Perhaps even more dramatic is the condominium market. Seventy-five percent of the 95 condos sold in 2002 were under $400,000 and one exceeded $1 million. In 2003, less than 30 percent of the 274 condos sold were under $400,000 and slightly under two percent were $1 million.

While the lure of the charm and weather prevails, Key West's values are not lost on the cold-hearted investor either. Properties sell quickly and increase in value at significant rates that are attractive to even the savviest experts.

For more information on property values, call Barefoot Appraisals, the largest appraisal company in the Florida Keys, at (305) 293-6657.

Key Wester-May 2004 Volume 2 Issue 7

-- Vicki Lynn Gordon