Critical Florida Keys market update every buyer and seller should know.

Today, I’d like to discuss the current state of the Florida Keys market. We have observed some notable changes recently, starting with our closed transactions. There has been a decline of approximately 36% in the number of closed transactions. However, despite this decline, there has been a slight increase of about 1.6% in the average sales price compared to the same period last year. The average sales price for properties in the Keys is currently $1,075,000. This suggests that even though fewer transactions are taking place, properties are still being sold at higher prices.

Moving on to inventory, we still have a shortage of available properties. Although there has been an increase of around 21% in inventory numbers, we are only averaging between 1,500 to 1,600 listed properties for sale in the Keys. This is still quite low compared to the averages prior to 2020, which were closer to 2,400 to 2,500.

“Sellers are willing to negotiate and adjust their expectations by reducing prices to attract buyers.”

The average days on market is currently about 79, indicating the length of time it takes for buyers to put a property under contract from the listing date. This is slightly higher than last year but moving closer to the pre-2020 average, which sometimes exceeded 100 days. Overall, the days on market are still favorable.

Pending transactions, representing properties under contract but not yet closed, have also experienced a decline of approximately 30%. This closely reflects the decrease in closed transactions. It seems that buyers may be taking more time and being cautious in the current market. However, properties are still being placed under contract.

In terms of listed prices, sellers, on average, are willing to negotiate and are adjusting their expectations by reducing prices to attract buyers in the current market. On average, sellers are reducing their prices by about 10% from the original list price. This adjustment may result in a final sales price different from the initial list price.

Overall, the Florida Keys market remains strong, and we are gradually working towards a normalized market similar to the pre-2020 period. If you have any questions about our marketplace, feel free to call, email or visit our website. I look forward to speaking with you soon.