The Florida Keys luxury real estate market has undergone notable shifts from January through March 2025 compared to the same period in 2024. While the average sales price climbed to $2.9 million, up from $2.6 million, the number of sales dropped, and properties took longer to sell, with days on market rising to 104. Listing inventory also increased, and the average list price reached $3.8 million. These changes signal that the luxury segment, which had previously buoyed the overall market, is now feeling the effects of broader market headwinds that began in 20231.

A key driver behind the surge in new listings has been sellers’ desire to capitalize on historically high sale prices before further declines, combined with rising property insurance premiums and economic uncertainty. These factors, along with elevated interest rates, have made buyers more cautious, resulting in a market that is increasingly balanced or even tilting in favor of buyers. Inventory levels finally returned to pre-pandemic norms by March 2025, suggesting a market rebalancing rather than oversupply1.

Submarket analysis reveals significant divergence: Key West saw a 13% increase in sales, while the Middle Keys experienced a sharp 44% drop. Average sale prices rose in the Middle Keys but fell in the Lower Keys and Key West. Days on market increased across most submarkets, with the Lower Keys nearly doubling, except for the Middle Keys, which saw a slight improvement1.

Nationally, the Coldwell Banker Global Luxury Trend Report 2025 highlights resilience in the luxury sector, with single-family prices growing faster than the broader market. Optimism remains high among luxury property specialists, and inventory growth is expected to unleash pent-up demand. Notably, affluent women and Gen X buyers are playing increasingly prominent roles, and there is a growing preference for homes that offer seamless indoor-outdoor living and unique, value-driven experiences1.

In summary, the Keys luxury market is transitioning: more sellers are entering, inventory is up, and buyers have greater negotiating power. While high-end prices remain elevated due to a few standout sales, underlying trends point to a more cautious, buyer-friendly environment for the remainder of 20251.


Lela Ashkarian, PA, ABR, CRS, GRI, President's Circle Elite
305-395-0814
https://www.searchfloridakeyshomes.com/