Lower Florida Keys Real Estate up 10%

Feb. 3, 2013 - PRLog -- Last year's Keyswide median home price rose 4 percent to $335,000, while the average price jumped 7 percent to $451,000, according to Multiple Listing Service data compiled by Coldwell Banker Schmitt Real Estate.

The median price -- the number at which half of the residences cost more and half cost less -- took its largest leap in the Lower Keys, jumping 10 percent in 2012.

MLS data does not capture homes listed by owners, nor does it include homes sold inside the gates of the Ocean Reef Club in North Key Largo.

William Hardin, director of Florida International University's Hollo School of Real Estate, attributed the price increases to three factors: the growing economy, low interest rates and the fact that the stock market is near a five-year high.

That final factor is especially important for many of the second-home buyers that make up a major part of the Keys market.

"The top 5 or 10 percent, their decisions to consume and buy leisure are determined by what their wealth is, because in many cases their wealth exceeds their income," Hardin said.

"Even though people, Democrats and Republicans, aren't happy with what's going on in Washington, they've decided that this is the way it is, so they're not going to postpone a quality-of-life issue any longer," he said. "Also, I think people are more comfortable having a greater portion of their capital in assets, because they anticipate at some point we're going to have inflation."

FIU's Hardin said he expects Keys real estate prices to continue a steady rise in 2013, perhaps increasing by 5 or 6 percent.

February 4th, 2013, Key West, Florida Keys. Per Fred Mullins and Team Mullins, Key West’s top producing Real Estate Team. “With the whole economy on the rebound as well as more tourists coming to our area, we have definitely seen an increase in demand for Real Estate here.

When asked to elaborate on how this has come about, Fred remarked, "There are several reasons. For one, we are seeing more retail operations coming to the lower keys which in turn creates more jobs and increases demand for housing. Secondly we are seeing record numbers of tourists coming here both on cruise ships as well as people driving and through our airport. Our occupancy rates are higher then ever.

What happens historically, is that when more people come here, a percentage of them fall in love with our unique environment and less stressful lifestyle. They in turn purchase real estate, either as an investment for rental income, a second vacation home or for retirement. Finally with the mortgage rates being in the 3 to 4% range, there's never been a better time to get a piece of paradise then there is now!

Fred Mullins has more than 15 years of cross functional experience in real estate, international asset management and construction management. He has been a part of the management team for several Fortune 100 companies, including AT&T, Visa, FPL and C. B. Richard Ellis. His responsibilities have included real estate / property management portfolios of more than 9 million square ft. and international responsibilities in more than 10 countries.

Fred holds an MBA, B.S., real estate license, mortgage broker’s license, USCG Master Captains license and commercial pilot’s license.