April 13, 2018

First Quarter 2017 VS 2018: How did Hurricane Irma Affect The Real Estate Market?



As a real estate professional, I am asked the same question over and over: How's the real estate market? Most of the time, it is just a curiosity that the person asking the question has about real estate in general.

Post Hurricane Irma, the question has changed: How did Irma affect the real estate market. Most of the time, the person asking the question has a look of caution, appearing to anticipate a grim answer.

The answer may surprise you.  Here is how the first quarter of 2017 and the first quarter of 2018 compare, broken down by property type.

Single Family Homes, Non Waterfront:
2017: 46 sales, with an average sales price of $400,493
2018: 40 sales, with an average sales price of $427,510

Single Family Homes, Canalfront, Lakefront and Plugged Canal:
2017: 36 sales, with an average sales price of $909,694
2018: 41 sales, with an average sales price of $1,063,280

Single Family Homes, Open Water:
2017: 12 sales, with an average sales price of $2,189,583
2018: 14 sales, with an average sales price of $1,978,250

Condos, Townhomes and Condotels:
2017: 32 sales, with an average sales price of $358,806
2018: 41 sales, with an average sales price of $417,558


With the exception of open water homes, most segments of the market saw an increase in average sales price. Open Water homes dropped a little, but more of them sold in the first quarter of 2018 than 2017.

It is important to note that these figures are from the Upper Keys market, from Mile Marker 74 to Mile Marker 106.  This area stretches from north end of Key Largo to the south end of Islamorada.  I've limited it to this area because this is my primary marketplace. Without a doubt, the numbers will be considerably different than in areas harder hit by Irma, such as Cudjoe Key and Big Pine Key. Many areas in the Lower Keys are still in recovery and rebuilding mode.

The next hurricane season is just 49 days away. The season is predicted to be slightly above average, with 14 named storms, 7 hurricanes, with 3 hurricanes predicted to be intense.



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