The Island Estate Report — September 2025

Key West Market Update

The Key West residential market remains active, but pricing and pace continue to adjust as buyers grow more selective.

August 2025 vs. August 2024 (YOY):

• Absorption Rate: 9.22 months, up 4.4%, showing more inventory relative to sales.
• List Prices: Average asking prices fell 5% to $1.85M, while the median dropped 11.6% to $1.35M.
• Sale Prices: Average sale price slipped 2.5% to $1.49M, but the median rose a strong 15.1% to $1.2M, proof that well-positioned homes are still commanding offers.
• Days on Market: Average time to sell shortened from 118 to 101 days, but the median rose 26% to 92 days, suggesting some homes are moving quickly while others linger.

Year-to-Date (Jan–Aug 2025 vs. 2024):

• Median Sale Price: $1.11M, up 11% YTD, underscoring long-term price strength.
• Average Sale Price: $1.44M, up 4.7% YTD.
• Absorption Rate: 10.68 months YTD, up 9% from last year.
• Time on Market: Average DOM is 87 (up 8.8%), with a median of 62 (up 10.7%).

What It Means

The story isn't about demand disappearing. It's about buyers being more value-driven. Homes priced with strategy are still selling, often at stronger median levels than last year. Homes priced with "wait-and-see" optimism are taking longer to move.

If you're considering selling, a smart pricing strategy (or a timely adjustment) can be the difference between sitting on the market and securing a serious buyer.

---

Why a Price Reduction Might Be the Smartest Move You Can Make

"I'm not lowering the price unless I get an offer." It's a common sentiment, but here's the truth: sometimes not adjusting the price is exactly what keeps buyers from engaging in the first place.

Right now in Key West and the Lower Keys, we're seeing more price reductions. Not because the market is crashing, but because some listings came out with optimism, not strategy. And when a home sits too long without activity, buyers start to wonder what's wrong with it, even if the only issue is the number on the price tag.

What the Market Is Telling Us Right Now:

• Absorption Rate rose to 9.22 months, up 4.4% year-over-year
• List Prices easing: average list price fell 5%, median dropped nearly 12% YoY
• Sales Prices are mixed: average sale price dipped 2.5% YoY, but the median sale price jumped 15%, as buyers are moving decisively at the right price points

A smart price adjustment doesn't mean failure. It signals awareness, flexibility, and a real intent to sell. In today's market, the sellers who act are the sellers who win.

Buyers are still buying: 509 sales so far this year, nearly even with 2024. But they're data-driven and selective. A small, well-timed adjustment can make all the difference.

---

Featured Property of the Month

27 Evergreen Avenue, Key Haven | $3,250,000

A spacious and beautiful 3,019 sq ft, 4-bedroom, 3.5-bath canal-front home in Key Haven. Flexible floor plan with room for home offices, multiple gathering areas, and generous entertaining space.

Features include direct boating access from a 60 ft dock, new metal roof (2019), new exterior paint (2022), hurricane shutters, one-car garage, and a heated pool with waterfall. Stunning open-water views from multiple balconies.

---

Community Spotlight: The Key West Hotel

Fully renovated and reimagined, tucked into the lively energy of Duval Street yet hidden in its own private oasis. Two distinct buildings (a lovingly restored Victorian-style conch house and a contemporary poolside haven) encircle a lush courtyard with a sparkling swimming pool at its center.

---

Featured Events

Fantasy Fest — Berkshire Hathaway Parade of Homes

October 23rd, 11am–3pm. Explore a curated collection of homes from Key Largo to Key West, with a chance to win VIP tickets to our exclusive Fantasy Fest Parade Viewing Party, hosted at our Duval Street office with food, drinks, and one of the best views on the island.

Key West World Championship Powerboat Races

November 2nd–9th, 2025. Step into the exhilarating world of Race World Offshore, where the ocean becomes a high-speed battleground for cutting-edge boats and fearless competitors.