There are a couple reasons to believe it has.
First, inventory of Key West homes is finally dropping. The combination of bargain prices, bank owned liquidations, panicking sellers, low interest rates, and an $8000 tax credit for first time buyers have gotten buyers off the fence.
Currently, the Key West MLS is showing 808 properties for sale in Key West (that includes everything in the residential category including: single family, condo, multi unit, and more). At one point, there were well over 1400 properties in residential.
Even toxic banks have less property on hand. Take a look at this chart of Countrywide's "real estate owned":
This counts the number of properties Countrywide owns. The number is dropping rapidly - a key to the recovery of the banking sector.
Another clue that Key West real estate has bottomed is the Zillow 10-year price chart. Finally, prices have reached the long term trend line.
Don't get me wrong - there are still plenty of unrealistic sellers out there. For them, the market is still falling.
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