Whether you're a longtime Conch, a part-time resident, or simply keeping an eye on the market from afar—this update is for you. From conch cottages under $1M to waterfront estates, here’s where Key West real estate stands through August 2025.
And while the Fed hasn’t made a move yet, Jerome Powell dropped the biggest hints so far that rate cuts could arrive as early as mid-September. With mortgage rates already at a 10-month low, buyers and sellers alike are watching closely.
📊 What the Numbers Say (And What They Don’t)
From January through August 2025:
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Homes sold: 299, down 6% from last year but still 4% higher than 2023
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Average sold price: $1.45M, up 5% year-over-year
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List prices: climbed 6% vs. 2024 and 7% vs. 2023
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Days on market: stretched to 87, up 50% since 2023
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Price per square foot: flat, holding steady at $988
So, what does this mean? The market is holding—steady prices, steady volume—but homes are taking longer to sell.
🧭 What This Means if You’re a Buyer
If you’ve been waiting for rates to drop, you’re not alone. Many buyers are sitting tight, which creates opportunity for those ready to move.
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More breathing room: Homes are sitting longer, giving you leverage.
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Motivated sellers: Especially for listings that have been on the market a while.
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Prices are steady: No bidding war frenzy, just a question of value.
💡 KeyWestTed Tip: If you’re pre-approved, August may be your moment to act quietly before September’s potential rate cut pulls more buyers back in.
💬 What This Means if You’re a Seller
You might be wondering: has the market cooled too much?
Short answer: No.
Longer answer: Not if you play it right.
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Homes are still selling—and at higher prices than 2023.
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Buyers are value-driven—this means cleaner listings, flexible terms, and smart pricing.
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Luxury is leading the way—$4M+ homes are up 50% in sales since 2023.
💡 KeyWestTed Tip: Presentation and pricing matter more than ever. Price with strategy, stage thoughtfully, and stay flexible—it’s a chess game, not a sprint.
💰 Which Price Ranges Are Moving?
Here’s how sales shook out from January–August:
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$0–1M: Down 15% from last year, but still up 5% vs. 2023
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$1–2M: Flat year-over-year, down just 2% since 2023
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$2–3M: Back on the rise, up 13% vs. 2024
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$3–4M: Holding strong, up 29% vs. 2023
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$4M+: The standout performer, up 11% from last year and 50% compared to 2023
The clear trend? Entry-level cooled, while the luxury segment continues to thrive.
🏝️ Final Thoughts from Key West Ted
Markets like this don’t stall—they reset. They create sharper buyers, smarter sellers, and opportunities for deals on both sides.
✔️ Prices are rising, not falling
✔️ Buyers have more time and leverage
✔️ Luxury is thriving
✔️ Rate cuts may spark new competition by fall
So, whether you’re buying, selling, or just watching the market—this is a time to strategize, not sit still.
And when you’re ready to make a move—
You Should Be Here,
🐓KeyWestTed🐓
