Tuesday, April 11, 2006

Trouble in Paradise? Florida Keys Real Estate Stats Point to a Falling Market

According to statistics recently compiled by a big local realtor, Curtis Skomp, Key West and the rest of the Florida Keys' real estate market appears to be headed for serious trouble. And it may be just the thing the islands needs to stay viable. Nearly a decade of insane price appreciation and speculation in the Florida Keys housing market has caused many in the working class to move away. As a result, the islands are running out of employees and places for them.

The statistics show three trends sure to cause prices to fall further:
  1. a sharp decrease in the number of properties sold in the 3rd and 4th quarters of 2005,
  2. a sharp increase in the number of properties available for sale,
  3. a sharp increase in the number of days on the market it took to sell property

In all of these cases, the problems worsened from the 3rd to the 4th quarter. Certainly the hurricanes and the massive windstorm insurance bills have something to do with it. Then again, increasing interest rates and local taxes may have had just as much impact. Who knows?

What is important is that the housing shortage may soon become a housing surplus, as a ton of overpriced condos, McMansions, and other difficult sales overshadow the market of fewer and fewer buyers.

Here is a screenshot of the statistics from Skomp:

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1 comment:

Matt said...

Good news for someone like myslef who would love the opportunity to live an work in the area, but simply can't afford to live there. Maybe my ship is coming ashore...