Is Real Estate in Key West Overvalued?
Is real estate all over the United States or the world overvalued?
I’m currently in Key West and we just got to a house we are staying at for a few days. The house next to us has a for sale sign on it that is listed by Berkshire Hathaway. I was curious how much it was for sale for and some details about it.
A quick search on presearch gave me some interesting information that surprised me quite frankly. The 2 bedroom, 1 bathroom house is 720 square feet on a lot that is .05 of an acre. The house is between Duval and Simonton, some of the busiest streets in Key West.
The list price for the house $549,000. It was listed just 4 days ago and is already pending. In case you were wondering that is over $700/sq. ft. The only thing about the house is that it needs a TON. of work. This house easily needs $200-300k worth of work to get it in a condition to be lived in or sold.
The rents down here are insanely expensive for those staying for an extended period of time. Looking back on 2007/2008 I think we are starting to approach a similar level with real estate.
What do you think?
Here are a few pictures of the outside of the house. 
My suggestion, keep the area in which you would want to buy REAL Estate, have the free cash available, wait for the next credit crisis (sooner than later), then make your move. Buy low, buy during crisis, sell high
That is a very good point! Having that free cash available is important!!!
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Based on average salaries very over priced.
Real estate in my area is super over valued.... but you know supply and demand. Supply here is low and demand is high.
It is great if we wanted to sell and move somewhere else. However, as it is property taxes just keep going up as the assessed value skyrockets.... and the old salary isn’t increasing at the same rate.
I think that exact same thing is happening here in Key West!
I think salaries not increasing while everything else does is a problem we are going to have to live with for a while!
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This was listed last month for $1 million a short ways away from me in Silicon Valley. Absolutely absurd.
Good lord! That is unreal! How quickly did it sell???
It may or may not still be on the market- but I know this one sold for $1.23 million around the same area in April! It's so crazy
AND, you have to battle the garbage can army just to get in the garage! Sheesh!
Haha that looks like a tough fight too! They are stacked!
That seems like a lot of money for a house, but then again, it seems like the prices are sky high everywhere. It sucks. It makes it much harder for young families to start out because housing is so much. Yet everyone says you're supposed to shackle yourself with all that debt, and don't even worry about the prices. It's nuts. Just my opinion.
It does seem backwards! I mean, the banks were the ones that created the idea of mortgages in order to fatten their pockets. It almost makes more sense to rent in a lot of markets
That's pretty much where we're all at right now. If you don't own a house, it doesn't really make sense to get one in a lot of places because the prices are so freaking high. Who can afford that? That's another story though. :P
Yikes! That is an awful lot of money for a broken down shack the size of a cracker jack box.