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Lower Keys Luxury Real Estate Forecast
The Lower Keys luxury real estate forecast is on track to being one of the best on record. Although the market is slowing, it's definitely not headed for big trouble.
By: Coldwell Banker Schmitt Real Estate
The Lower Keys luxury real estate forecast is a positive one. This is because people continue to move into the state at one of the highest levels in the peninsula's history. The Lower Florida Keys are mostly tracked by activity in Key West, the most popular and best-known community in the island chain.
Right now, the median listing price stands at $1.2 million, which is quite similar to Key Largo, the furthest northern isle. Also, the median list price per square foot is currently running at $926, with a median selling price of $950,000. These figures represent an increase of 34.3% in a year or year comparison. Additionally, the sale-to-list price ratio is very high, presently at 99.02%, meaning homes are selling for just 0.98% under the asking price. Moreover, the median days on the market are now just 50 days, or a little over a month and a half.
While these are certainly great numbers, there are challenges that lie ahead and obstacles that already exist, which will likely push the market back into balance. (Right now, the Lower Keys, Key West, in particular, is in a hot seller's market.) The factors which are of most concern are rising interest rates, shortage of building materials and labor, rising inflation, and the possible reintroduction of distressed properties - including foreclosures and short sales.
As interest rates continue to rise, buyers will surely pull back and the market will begin to cool. Additionally, more pressure will be placed on resales as new construction continues to appear slowly, due to the shortage of building materials and labor. Rising inflation will also dampen sales in the Lower Keys luxury real estate market.
Then, there's the matter of distressed properties. Because of the shutdowns, the courts are still slowly processing foreclosures and short sales. If these properties trickle onto the market, they won't present a problem. But, if they flood the market, this will probably hurt the market.
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