As of the end of May 2025, the Key West real estate market continues to evolve, revealing a clear shift from past years. Fewer homes are selling, properties are spending more time on the market, and prices are climbing across the board. While the island remains a highly desirable destination, both buyers and sellers are navigating a different pace than we've seen in recent years.
📊 Year-Over-Year Snapshot (Jan–May)
| Metric | 2023 | 2024 | 2025 | % Change (2024 → 2025) |
|---|---|---|---|---|
| Homes Sold | 204 | 222 | 199 | ⬇️ 3% |
| Original List Price Avg | $1,520,339 | $1,470,855 | $1,732,044 | ⬆️ 18% |
| Final List Price Avg | $1,460,565 | $1,393,019 | $1,613,971 | ⬆️ 16% |
| Sold Price Avg | $1,402,184 | $1,322,892 | $1,520,134 | ⬆️ 15% |
| Days on Market (DOM) | 52 | 75 | 77 | ⬆️ 3% |
| Sold Price Per Sq. Ft. | $986 | $1,003 | $1,027 | ⬆️ 4% |
🔎 What's Changing in Key West?
Sales Volume Is Easing: 199 homes were sold in the first five months of 2025—a modest but notable decline from the 222 sales recorded during the same period in 2024. While the drop isn't dramatic, it's a clear signal that the market is cooling slightly after a strong run-up in recent years.
Prices Are Trending Up: Despite fewer closings, prices are on the rise. The average sold price has increased by more than $197,000 year-over-year, and both original and final list prices are up by double digits. Sellers appear more confident—or at least more ambitious—in their pricing, though not all listings are meeting the market with success.
Longer Time on Market: One of the most telling shifts is the increase in Days on Market. In 2023, the average home sold in just 52 days. That number has climbed to 77 days in 2025, reflecting a 48% increase in just two years. Buyers are taking longer to commit, and homes that aren't priced or presented well may linger.
Per Square Foot Pricing Is Holding: Despite fewer transactions and slower movement, the sold price per square foot has shown steady growth. Now at $1,027, it's a 4% increase from 2024 and a 12% jump from 2023. This signals that while pace has slowed, property values in Key West are still trending upward.
🏡 What This Means for Buyers and Sellers
For Buyers: The slower market means more leverage. While prices are higher, increased inventory and longer DOM give buyers the opportunity to negotiate, ask for concessions, and act with a little more breathing room. The key is still being ready when the right property comes along.
For Sellers: Demand remains, but expectations must be realistic. Presentation, timing, and pricing strategy are now more important than ever. Overpricing in today's market can lead to extended days on market and ultimately, price reductions. Homes that show well and are priced in line with market trends are still moving efficiently.
🔹 Key Takeaway:
Key West continues to be a high-demand, high-value market. But unlike the fast-paced frenzy of years past, we're now in a phase that requires more patience, preparation, and strategic thinking.
From pricing it right to navigating offers, market shifts, and negotiations—working with a professional who knows this island inside and out can be the difference between sitting and selling. Let's get together, have a coffee, and chat.... my treat.
You Should Be Here,
🐓KWT🐓
