Florida Keys Real Estate Update: A Market Worth Watching

The Florida Keys real estate market is showing renewed activity, and whether you are thinking about buying, selling, investing, or simply keeping an eye on the value of your property, there are several encouraging trends worth knowing.

From January through August 2026, Florida Keys sales increased 11.4% compared with the same period last year, with 1,735 properties sold. Total dollar volume rose approximately 22.5% to more than $2 billion, while the average sale price increased to approximately $1.19 million.

We are also seeing fewer properties competing for buyers. Keys-wide inventory declined about 10.7%, while months of inventory dropped from 10.7 months to approximately 8.6 months.

Pending transactions also increased, another indication that buyers are actively making decisions.

What Does This Mean for Buyers?

There are opportunities, but this is not a market where every property should be approached the same way.

While activity has strengthened, many properties are still selling below their original asking prices. That means buyers should respond to the facts rather than react to the asking price.

Before making an offer, we look at the property's history, comparable sales, current competition, condition, location, rental possibilities, insurance considerations, and the seller's positioning.

Sometimes the right decision is to negotiate. Sometimes it is to move quickly. And sometimes the smartest decision is to walk away.

Our role is to help you understand the difference.

What Does This Mean for Sellers?

More sales and fewer competing properties are positive signs, but today's buyers are informed and value-conscious.

Simply placing a property on the market is not enough.

Pricing, presentation, photography, marketing, timing, showing feedback, competing inventory, and ongoing adjustments all matter. The properties receiving the strongest attention are generally the ones buyers feel are positioned appropriately for today's market.

The goal isn't simply to be for sale. The goal is to become one of the properties buyers choose.

Own an Investment Property? Keep Homestead Planning on Your Radar

There is another important issue Florida property owners should be watching: potential changes involving Florida's Homestead Exemption.

Under the proposed framework, residency status as of December 31, 2026 could become particularly important in determining when someone may qualify for an enhanced homestead exemption.

For people establishing Florida permanent residency after that date, the proposed higher exemption may not become available immediately and could involve a waiting period.

So, if you currently own a second home or investment property in Florida and have already been thinking about eventually making Florida your permanent residence, this is worth discussing with your tax professional, attorney, and Property Appraiser.

This does not mean everyone should rush to change their residency. Your personal, financial, legal, and tax circumstances matter.

It simply means that if becoming a Florida resident is already part of your long-term plan, now is a good time to understand your options rather than waiting until the last minute.

Real Estate Decisions Should Be Strategic, Not Emotional

Markets change. Interest rates change. Tax laws and exemptions can change. Your lifestyle and financial priorities change too.

The best decisions usually come from understanding how all those pieces fit together.

If you are wondering:

• What is my Florida Keys property worth today?

• Is this a good time for me to buy or sell?

• Could a vacation rental or investment property make sense?

• Should I consider making my Florida property my permanent residence?

• What areas of the Keys best fit my lifestyle and financial goals?

Reach out to us.

There is never any pressure. Sometimes a 15-minute conversation can give you the information you need to make a much better decision—or confidently decide that now is not the time.

Respond to this email or call us at 305-395-0814. We would love to hear what you are considering and help you look at the possibilities.

Lela Ashkarian, PA
Coldwell Banker Schmitt Real Estate Co.
305-395-0814
SearchFloridaKeysHomes.com