Key West, Florida, known for its stunning beaches, vibrant culture, and laid-back lifestyle, continues to be a highly sought-after real estate market in 2024. Let's dive into the current trends and insights shaping this unique island paradise.
## Soaring Home Prices
The Key West housing market has experienced significant price appreciation over the past year. The median home list price in Key West reached an impressive $1,295,000 in September 2024, marking a substantial 57.4% increase from the previous year[1]. This surge in prices reflects the strong demand for properties in this desirable location.
## Market Dynamics
### Inventory and Sales
While prices have risen dramatically, the inventory in Key West remains relatively tight. In September 2024, there were only 19 homes for sale, a 5% decrease from the previous month[1]. This limited supply contributes to the competitive nature of the market.
Despite the low inventory, sales activity has shown some positive signs. In August 2024, 29 homes were sold in Key West, up from 24 in the same month the previous year[2]. This increase in sales volume suggests that buyers are still actively pursuing properties in the area, despite the higher prices.
### Days on Market
Interestingly, homes in Key West are taking longer to sell compared to the previous year. The average listing age in September 2024 was 254 days, which is actually a 42.6% decrease from the 444 days recorded in September 2023[1]. However, another source reports that homes in Key West sell after an average of 113 days on the market, up from 86 days the previous year[2]. This discrepancy might be due to different data sources or methodologies, but both indicate that properties are generally spending more time on the market than in the recent past.
## Price Per Square Foot
The median price per square foot in Key West has reached $1,197, reflecting the premium placed on space in this island community[1]. This high cost per square foot underscores the value of real estate in Key West and the willingness of buyers to pay a premium for a piece of this tropical paradise.
## Market Competitiveness
While Key West remains a desirable location, the market is not considered highly competitive compared to some other hot real estate markets. Multiple offers are rare, and homes typically sell for about 6% below the list price[2]. This suggests that buyers may have some negotiating power, despite the overall high prices.
## Migration Trends
Key West continues to attract interest from out-of-state buyers, particularly from the Northeast. New York, Washington, and Boston are the top three metros where homebuyers are searching to move into Key West[2]. This ongoing influx of out-of-state interest helps sustain the market's strength.
## Looking Ahead
As we move through 2024 and into 2025, the Key West real estate market is likely to remain robust, albeit with some potential for stabilization. The unique appeal of Key West, combined with limited land for new development, should continue to support property values.
However, potential buyers and investors should be aware of factors that could impact the market, such as:
- Changes in mortgage rates
- The overall economic climate
- Climate change concerns and insurance costs in coastal areas
For those considering entering the Key West real estate market, it's crucial to work with local experts who understand the nuances of this unique island community. While prices are high, the enduring appeal of Key West as a tropical getaway and potential rental income generator continues to attract both homebuyers and investors to this slice of paradise.
Citations:
[1] https://www.rockethomes.com/real-estate-trends/fl/key-west
[2] https://www.redfin.com/city/9311/FL/Key-West/housing-market
[3] https://www.realestatefloridakeys.com/coldwell-banker-schmitts-real-estate-report-and-archives
[4] https://www.zillow.com/home-values/52767/key-west-fl/
[5] https://www.houzeo.com/blog/ohio-real-estate-market/
[6] https://explodingtopics.com/blog/real-estate-trends
[7] https://www.teamkaufelt.com/key-west-real-estate-market-now-2024/
[8] https://www.colibrirealestate.com/career-hub/blog/50-topics-real-estate-blog/
