A Mid-Year Shift: What Buyers and Sellers Need to Know in the Florida Keys

As we move into the second half of 2025, the Florida Keys real estate market is experiencing some important changes. Buyer activity has cooled, inventory is rising, and prices are adjusting, creating a more balanced landscape and opportunities for both buyers and sellers.

Here’s what you need to know:

Quick Market Overview (as of July 2025)

• Home Sales: Down 5–10% in most areas, with a slight uptick in the Lower Keys

• Pricing Trends: Prices have softened up to 10% in several markets, but luxury homes in Key West are holding firm or increasing

• Inventory: Listings are up 17–20%, giving buyers more options and leverage

• Days on Market: Homes now sit an average of 98–112 days, about 18% longer than in 2024

• Buyer’s Market Zones: Middle Keys, Lower Keys, and parts of Key West are seeing a shift in negotiating power

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Regional Breakdown

Region	Price Trend	Inventory Change	Days on Market	Key Insight
Upper Keys	Slight decline	+8–17%	Up 65%	Slower pace, more cautious buyers
Middle Keys	Down 8–13%	+11–17%	Longer sales	Buyers gaining leverage
Lower Keys	Down 9–27%	+34%	Up 28%	Listing surge, slight sales boost
Key West	Up 5–10%	+8–20%	Down 9%	Demand is strong for luxury homes

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Advice for Sellers

• Price to move: Homes are closing at about 94% of the list price

• Be patient: The market is slower, especially for homes needing updates

• Stand out: Highlight waterfront access, hurricane-resilient construction, or recent renovations

• Incentives help: Closing cost coverage or minor upgrades can seal the deal

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Advice for Buyers

• More inventory, less urgency: You can shop around with confidence

• Negotiate smart: Sellers are more open to deals, especially in non-waterfront segments

• Act fast on premium listings: Updated, waterfront homes are still moving quickly

• Think long term: Consider investment potential in vacation or short-term rental markets

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Looking Ahead: What’s Next?

• The market is expected to remain balanced or favor buyers through year-end

• Interest rates, winter season activity, and hurricane timing will play a role

• Luxury and waterfront properties are likely to stay stable or appreciate

• Sellers should act soon to avoid potential further pricing corrections

• Buyers have negotiating power—but should act quickly on standout listings

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Want a custom home value analysis or tailored property list?
Let’s talk about how this market shift affects you.

?? Schedule a strategy call with me today

Looking forward to helping you navigate this evolving market with confidence.

Warm regards,
Lela Ashkarian, P.A.
Senior Real Estate Advisor | Coldwell Banker Schmitt
305-395-0814 | lela@cbschmitt.com
Free Market Analysis Click HERE https://consumer.hifello.com/lp/6792759860d3f200377bdc77