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The Lower Keys Real Estate Market
The Lower Keys residential real estate market is mostly hot at this time, particularly in Key West. Here in the island archipelago, there are different opportunities and trends that vary from one area to another.
By: Coldwell Banker Schmitt Real Estate
Because of the warm weather, the beautiful landscape, and the abundance of recreational activities, the Lower Keys are very attractive to potential buyers. So, let's take a look at the residential real estate market in the Lower Keys to learn more about it and what buyers and sellers should know before purchasing or listing.
The Lower Keys residential real estate market is experiencing one of its most active seasons. Right now, the median list price in the area stands at 1.1 million, with a median list price per square foot of $923, and a median selling price of nearly $872,000. This pushes the sale to list price ratio very high, being 98.66%, meaning that properties are currently selling for just 1.34% below they are asking prices. The median days on the market are also quite short, under 2 months in length, being just 55 days.
Additionally, home prices have seen a steady rise since June of 2019, when the median list price stood at just above 750,000. The same holds true for a year-over-year comparison, only markedly more, with home values trending up 33.3% since June of 2021. All of this constitutes a seller's market, with a higher percentage of buyers looking for properties than available inventory in the area. Although, this trend certainly won't continue, as the season for buying and selling comes to a close through the summer and into the winter.
What's more, higher interest rates are driving down new mortgage applications and refinances, so sales of residential real estate will slow as a result. This should prompt homeowners to put their houses on the market quickly in order to gain the highest return on their investments. Meanwhile, buyers will have an opportunity once the season is over to acquire real estate at a more affordable price.
Another factor that could have a large impact on the real estate market in the Lower Keys is the reintroduction of distressed properties, or foreclosures and short sales, which have largely been absent over the past two years. If these properties flood onto the market, that will have a negative impact. But, if they're reintroduced slowly, they should have very little effect.
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