Key West, FL Housing Market: What to Expect in 2025?

Name: Key West, FL Housing Market - Price Trend Analysis
Creator: Houzeo
License: https://www.houzeo.com/terms-of-use/

Overview

Forecast

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Demand

Key West Housing Market Overview

If you're searching for a home in Key West, market conditions are in your favor. While the median sale price is $1,117,500 (up 20.2% year-over-year), the real story is in the market's slowdown. Homes are sitting on the market for 95 days, there's a 7.1-month supply of inventory, and sales are down 7.7% year-over-year. Only 48 Key West houses were sold in April 2025. These conditions create a prime opportunity for buyers to negotiate and secure a great deal.

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Key West Housing Market Forecast for 2026

The housing market in Key West is expected to shift toward more balanced conditions in 2026, as modest inventory growth and easing mortgage rates create improved opportunities for buyers.

Market Outlook:

Home prices expected to rise modestly by 2-4%, marking a return to sustainable growth
Inventory levels forecast to increase 5-10%, providing buyers with more selection
Wage growth outpacing home price appreciation improves long-term affordability prospects

Will the Key West Housing Market Crash in 2026?

Industry experts agree the answer is no. Key West benefits from strong market fundamentals, including substantial homeowner equity and disciplined lending standards that prevent distressed sales. With 7.1 months of supply and homes selling at 93.6% of the asking price, the market shows signs of healthy rebalancing rather than distress.

UnlikelyCrash MeterLikely

Current Market Indicators

Days on Market:
95 days
Months of Supply:
7.1 months
Sale-to-List Ratio:
93.6%
Mortgage Rates:
Currently- 6.23% projected to hover between 6.0% and 6.8%

Key West Housing Supply

Key West's real estate inventory continues to favor buyers. With 340 homes currently available in April 2025, the critical factor is the inventory expansion. Supply has increased 8.3% year-over-year, months of supply have increased to 7.1 from 7.9 last year, and 52 new homes hit the market this month alone (down 13.3% year-over-year). This increased inventory gives buyers a better selection and stronger negotiating leverage. For sellers, it's important to list your home on MLS in Florida now before additional properties enter the market to help you stand out in an increasingly competitive landscape.

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Key West Housing Demand

Key West's housing demand signals a buyer-friendly environment. With the sale-to-list price ratio at 93.6% in April 2025, the key indicator is weakening seller pricing power. Only 4.2% of homes sold over asking price (down from 0% last year), the sale-to-list ratio dropped 2% year-over-year, and houses in Key West with price reductions increased from 15.4% to 30.3%. These metrics confirm that buyers control the market and sellers need to price competitively to attract offers.

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Frequently Asked Questions

How have Key West house prices changed over the past year?

Median home prices in Key West have increased by 20.2% YoY, and now stand at $1,117,500. You can check your home's fair market value with our free home value estimator to compare prices in your neighborhood and know where you stand.

What are Key West real estate market predictions for 2025?

House prices in Key West, Florida, should stabilize in the coming months. However, affordability remains a challenge across the Florida housing market, due to rising mortgage rates.

What's the average home price in Key West?

The average house price in Key West depends on the property type, size, and local market conditions. Condos cost around $855,000, while single-family homes average $1,250,000. You can also find cheap homes for sale in Key West that fit your budget.

What is a good time to buy a home in Key West?

August to December is typically the best time to buy a house in Key West, when supply is high and demand is low. Before buying, check if mortgage rates are stable and ensure there's more than 6 months of housing inventory available. Make sure you assess the current housing market trends in Key West before you invest.

When will the Key West housing market crash?

According to housing market forecasts, the market is unlikely to crash in the near future. Home prices and demand should increase during the summer, and stabilize by winter. The market is projected to remain steady, with sustained growth through 2025 and beyond.

How to buy a home in Key West?

Set a clear budget and get a mortgage pre-approval. Then, explore homes for sale in Key West, submit your offers, secure loans, and complete the closing process.

How can I list my home for sale in Key West, FL?

You can list your home for sale with a Flat Fee MLS Florida listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀

What is the average mortgage rate for buyers in Key West?

The average mortgage rate for buyers fluctuates between 6.4% and 6.9%. It depends on the market and your credit score. Always check current rates with lenders before you apply.

What is a good time to sell a house in Key West?

February to July is typically the best time to sell a house in Key West, when demand is high and homes spend fewer days on the market. Carefully assess market trends in your specific area before you act.

Important Legal Disclosures

*Based on Houzeo calculations of home data from MLS and/or public records.

“The market analysis provided on this page is for informational purposes only and does not constitute financial, investment, or legal advice. Data is sourced from public records, industry reports, and third-party providers, and while Houzeo strives for accuracy, we make no guarantees regarding the completeness, accuracy, or timeliness of the information presented.

All estimates, projections, and historical data are based on statistical models and should not be relied upon as predictions of future market conditions. Past performance is not indicative of future results, and real estate market conditions may change due to various economic and regulatory factors.
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