Rudy Molinet, Broker/Owner
Marquis Properties Realty
933 Fleming Street
Key West, FL 33040
Direct: 305-240-1090
Fax: 305-768-0808
rudy@rudymolinet.com
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Key West Real Estate Market Starting to Recover
January 2008
A recent article in the Key West Citizen by its business editor Anne-Margaret Sobota highlighted the positive signs of our current Key West Real Estate market and Key West Homes For Sale.
The article provided much needed, positive reporting of the current Key West Real Estate market. We are bombarded daily with negative reports by the national media regarding the real estate market. Key West Real Estate For Sale is not only starting to recover but is showing signs of life. The patient has taken many deep breaths, her blood is full of oxygen and in some areas of town, the exhaling has begun- you can tell I loved the headline!
In my opinion, the secret to this recovery begins with sellers pricing properties correctly. When buyers come to Key West and view over-priced properties and a large inventory, they get confused and may decide not to buy. Historically, over-priced properties do not sell, they just sit on the market contributing to the inventory and to a feeling that "everything is for sale" . In fact, this January compared to last January there are less Key West Homes For Sale listed in the Key West MLS as some sellers have begun to understand the importance of pricing and buyers are responding favorably by making offers. Many Key West Realtors will not show Key West Homes For Sale that they fell are overpriced. My strategy in working with Key West Real Estate Buyers is to only show them Key West Properties that I feel meet their needs and that are priced correctly.
Selling a property is best accomplished by hiring a professional Key West Realtor to analyze the market, provide information on comparable sales, price the property based on what it is worth, and then market the property aggressively. Most people would not have an operation without a doctor, go to court without a lawyer or get a filling without a dentist. The same logic applies to real estate- hire the best professional for the job and then listen to his or her advice.
Activity in the Key West Real Estate market lately has been busy! Buyers are looking at properties and second showings have increased. Offers are being written and accepted, sales are closing. Many buyers and sellers seem to understand the power of negotiating in "good faith" to make the deal happen. Those sellers who don't understand this principle probably won't sell their homes this season. And yes, properties are selling. Correctly priced properties, that is.
Key West Real Estate is one of the largest segments of our local economy and all Key West citizens have a vested interest in the market's success. Property owners obviously should care about this, but so should renters, snowbirds, electricians, plumbers, restaurant workers, retail store clerks, and artists. When Key West Real Estate sales are strong, people will renovate their homes, buy more goods, go to plays and movies, commission artists, eat at restaurants, shop at our stores, and provide quality rentals.
Key West Real Estate is highly desirable as Key West is still a great place to live or have a second home in. Our unique mix of people, great weather, architecture, tropical fauna & flora, arts & theater venues, water sports, and open-minded attitudes are a magnet for people from all over the world.
Call Rudy Molinet today at 305-240-1090 to talk about the Key West Homes For Sale that are right for you!
Florida Real Estate Group Fights Negative Press With Facts
May 2008
The Key West Real Estate market is doing just fine, according to a professional association of Realtors in Key West, Florida. And they have had enough of negative news stories and are mounting a campaign to let people know, using the slogan:
Key West Real Estate- It's Doing Just Fine!
"Over the past year the national news media continues to paint a grim picture of real estate and in our community, our local paper recently published a very negative article about our market that did not present the whole picture of our market today" says Rudy Molinet, Board Member of the Key West Association of Realtors.
"The headline was sensationalized and did not reflect what is really happening here", said Molinet. "So I went to our board and asked them to approve a marketing campaign so we can educate the public on what is really happening. The fact is that in Key West, while our market has changed, we are doing much better than in other parts of Florida and are beginning to see signs of recovery; indeed, we're doing just fine."
Jimmy Lane, President of the Key West Association of Realtors, says "Our real estate market is beginning to recover. Since January 2008 we have sold 129 properties in 137 days; that is almost one property per day. While in some parts of town our prices have come down, in the historic district our prices are stable and in some cases increasing." Another important factor, according to Lane, is the amount of properties on the market. "Our inventory levels are way down from last year," said Lane. "We currently have approximately 877 properties on the market, last year we had almost 1100 at this time."
Lane attributes this lower inventory and stabilizing of the market to several factors. Realtors® are working hard to educate sellers. They are encouraging them to list their properties based on what they are worth, not on some inflated number that they may be thinking the property is worth.
And buyers are responding.
"The town is really busy with showing activity this year" says Karen Lane, (no relation to Jimmy Lane) the President-elect of the Association. "We are seeing people come to Key West, enamored by our island lifestyle and understanding the long term value of this place we call paradise."
Lane says Key West really sells itself, which helps the Real Estate market on the island continue to grow. "Where else in the USA can you wear shorts in February, watch drag queens working with church groups to help out the local Boys and Girls Club? We are still a unique Island Paradise and the message is out there. Come to Key West and be yourself, everyone is welcome."
"I've been looking at the market in Key West for a long time and I realized that is was a good time to buy", says George Mentonis, who with his wife Pat, just recently purchased their dream home in Old Town Key West. "The time was right as properties are being priced in proportion to what they are worth. The numbers made sense to me so we went for it. I think people are realizing that this is the time to buy in Key West and that they may miss the boat if they wait too much longer."
Richie Spada just recently sold his house on Fleming Street after only 44 days on the market. "When I first met with my realtor, he did a market analysis and showed me what similar homes sold for. Of course I wanted a higher price but the analysis was thorough and the numbers don't lie. I went with my realtor's recommendation and voila, I sold my house at 94% of the asking price. The buyer was happy because he got a great house at the right price and I was happy because the house sold in the period of time that I wanted it to sell."
These stories are repeated all over Key West lately.
"We will be running ads over the next several months showing the facts to people that our real estate market is experiencing a comeback. It is hard to argue with a full page of pictures of houses with SOLD banners on them", says Bascom Grooms, Past President of the Association. Just like on that old TV program taught us; we are going to give them "the facts, just the facts".
The Key West Association of Realtors is the professional association of Realtors® in Key West Florida with nearly 400 members. The mission of the Key West Association of Realtors® is to provide members with support, education, and services that will enhance the practice of real estate, elevate ethical standards, promote diversity and integrity and advocate for home ownership and property rights in the lower Florida Keys. You can contact the association at www.keywestrealtors.org
Summer 2008 Key West Real Estate Report
The Key West housing market continues to show signs of life despite the typically slow summer season. There were 25 properties sold in July and the second quarter of 2008 saw more properties sold in Key West Real Estate than the same quarter in 2007. Prices were down 13% from last year for Key West as a whole for the 2nd quarter as sellers are becoming more realistic with their asking prices and buyers are responding!
The Old Town, Casa Marina, and Truman Annex areas have all seen strong sales in the last quarter with prices in some cases stabilizing including several multi-million dollar properties closing during the second quarter.
Rudy Molinet sold two properties in the month of July that were over one million dollars. The first was 806 Truman, a beautiful piece of Key West real estate. The property sold for $2,050,000 and is a large home with three transient licenses. The new owners intend to turn it back to a bed and breakfast. This will be a wonderful upscale addition to the Key West Inn scene.
The second property is located in the Casa Marina at 1123 Washington. This property sold for 1.3 million and is a gorgeous Key West home.
Rudy has placed nearly 30 million dollars in Key West Real Estate under contract since January 2008; a record for his company!
Rudy and his team just closed on a property located at 730 Passover Lane. We just listed an amazing property at 1418 Leon designed by award winning architect Michael Miller. This home is one of the most luxurious and beautiful on the Island, so don't miss this one!
My colleagues are amazed at the activity level we all are experiencing this summer. There are buyers looking, contracts being written and sales happening....those who had written off the Key West Real Estate Market as declining should take note of these recent sales and understand that there is only ONE Key West, and people from all over the world are coming here to enjoy the Key West lifestyle.
Call Rudy Molinet today to buy or sell your Key West home. Rudy is ranked Number 1 Key West Realtor in sales in Key West of the nearly 400 active Key West Realtors.
Rudy's Average Days on the Market for sold properties is only 87 days, half of the Key West average. His next competitor's average Days on The Market is 348 days. This is an indication that Rudy is helping Seller's price their properties close to what they are worth and helping buyers find well priced properties. Rudy's business is approximately 50% working with Key West Real Estate buyers and 50% working with Key West Real Estate sellers. This business mix has allowed Rudy to grow his business to record-breaking levels in Key West Real Estate this year.
If you would like to see a Key West Home for Sale and want to work with a Key West Realtor who will work hard, tell you the truth and be your advocate, call Rudy Molinet today. Rudy can be reached at 305-240-1090.
On another front, Congress passed a new federal housing relief law that should also help further stabilize our market. Here is a summary of the key points of the law. This should help the Key West Real Estate market in the coming months.
HR 3221, the Housing and Economic Recovery Act of 2008
National Association of REALTORS® Summary
(As of 7/24/08)
H.R. 3221, the "Housing and Economic Recovery Act of 2008," passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is to approved the bill and the President has signed the bill. It includes:
- GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
- Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
- FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
- Seller-funded down payment assistance programs – codifies existing FHA proposal to prohibit the use of down payment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
- VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
- Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision does will be effective from October 1, 2008 through September 30, 2009.
- GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
- Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
- National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
- CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
- LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
- Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.
For more information, visit www.realtor.org/governmentaffairs
Winter 2008-2009 Key West Real Estate Report
"The Weather Up North is Frightful,
But Key West is So Delightful"
Old man winter has come with a roar up North this year, but Key West still maintains an average temperature of about 75 degrees!
The Key West Real Estate market has shown some improvement in 2008. The total number of sales is higher than 2007, however prices are down about 13%. This has presented some tremendous buying opportunities this year for our clients.
Rudy Molinet and his partner, Harry Hoehn of Marquis Properties Realty had an excellent year. Rudy and Harry sold nearly $30 million in Key West Real Estate making Rudy the #1 Key West Realtor for Old Town Key West, Truman Annex and the Casa Marina. Rudy sold 18 properties ranging from a Shipyard Condo in Truman Annex for $410,000, an adorable one bedroom cottage in Old Town Key West for $430,000 to an amazing and large historic home on Truman Avenue for $2,050,000. There was a great new home at 906 Fleming Street that sold for $1,500,000; a waterfront Truman Annex condo in the prestigious Harbour Place for $1,700,000, several townhomes in Truman Annex ranging from $750,000 to $849,000 and several historic homes in Old Town Key West. Rudy also sold an incredible property located at 1021 Johnson. This bank owned property was originally listed for $2,795,000 several years ago and Rudy's client was able to buy it for the incredible price of $1,500,000. To see all of Rudy's sold properties click on Rudy Molinet Sold Properties.
There are several high-end properties on the market right now in Old Town Key West, The Meadows and in the Casa Marina East District that Rudy has listed. They include an amazing property at 722 Ashe Street and a huge property, The Mansion on Southard, located at 811 Southard Street in Old Town.
Rudy also has listed a wonderful townhome at 410 Porter Lane in Truman Annex, a historic home located at 909 White Street which is on the National Register for Historic Places, a lovely historic duplex located at 308 Peacon Lane within steps of the Key West Seaport and an adorable historic home at 623 Grinnell Street near the Key West Cemetery.
Interest rates are at an all time low so buyers are taking advantage and making offers on Key West Real Estate. Most recently, Rudy received an offer on his listing at 811 Southard currently listed at $2,995,000 and is expecting an offer on two other listings. A listing at 1409 South Street has been reduced and is now priced at $1,849,000; a great value considering the quality of construction and location.
The historic Foundry machine shop is home to a wonderful 2 story, all brick townhome located at 163 Front Street in the prestigious Truman Annex. Once again, Rudy Molinet was the number 1 agent for Truman Annex properties sold in 2008 and is an expert both in Truman Annex and in the Old Town Key West Historic District.
Rudy was busy this year as he was selected to star in two episodes of HGTV's National Open House. Rudy was also selected as a Most Referred Real Estate Agent, only one of two in the Key West market.
Rudy has also been busy with his work with the Rotary Club of Key West where he is serving as Secretary. He was recently elected as President for the 2010 Rotary year. This is quite an honor for Rudy since The Rotary Club has been in existence for 93 years and is the premier service organization in Key West.
Rudy was also elected to serve on the Board of Directors of the Key West Association of Realtors for a second year in a row. The association is the voice of real estate for the Key West Real Estate market.
We are looking forward to a busy 2009. With low interest rates, cold weather up North and prices that have come down from the historic highs of years past, the Key West Real Estate market is set to have a good year. Recently, Forbes Magazine named Key West "One of The Least Vulnerable Towns". This is good news for our community and for the Key West Real Estate market.
Call Rudy Molinet today to buy or sell your Key West home. As one of the few Key West Real Estate agents who provide exclusive buyer representation, Rudy will take excellent care of you and make your Key West purchase smooth and hassle-free.
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Rudy Molinet