Today we’re sharing an update on the third quarter 2019 real estate market here in the Florida Keys. For the past three years, we have had a stable market.
One thing we have seen is that our inventory has declined compared to this time last year by about 9%. We currently have 2,300 active listings in the Keys area. If the home is priced correctly, we’re seeing on average about 121 days on market. As of today, interest rates are at 3.75%. Low interest rates like this help increase spending power. What a wonderful time for buyers to come down to the Florida Keys and buy their dream home!
The entire country is talking about the shifting market right now. We have also been seeing a shift locally in our Florida Keys market. Pending transactions are at the lowest point that they have been in four years. Another shift we’ve seen is with price reductions. They have become a crucial component in our marketplace. Our sales price versus our original list price is at 89%, which means on average the sellers are having to lower their properties just over 5% before they receive an offer on the home. This means that if a home is priced properly, there is tons of activity, which results in an offer. Location is the queen and condition is the jack of hearts, but price is still the king.
In summary, this is an excellent time for sellers to take advantage of the tax benefits before the year ends. Then buyers can be in a new home before the end of the year and there’s a tax benefit for them as well. As of now, you can still close before the end of 2019 whether you’re purchasing with cash or receiving financing. Just remember, March 1 is the deadline for the homestead exemption.
If you have had any thoughts of selling your home in 2019 or 2020 or if you would like to find your dream home in the Florida Keys, please give us a call or send us an email. Any questions are always welcome. We would love to help you with whatever you need!