Key West Housing Market: A Shift in Dynamics
The Key West, FL metro area housing market in November 2024 presents a complex landscape characterized by significant shifts in pricing and sales dynamics. The Median Sales Price has experienced a notable decline, standing at $905,000, which marks a 14.1% decrease year-over-year. This downward trend in sales prices contrasts sharply with the Median List Price, which has risen by 11.0% to $1,275,000. This divergence suggests a widening gap between seller expectations and buyer willingness, potentially indicating a market correction or adjustment phase.
In terms of Price Per Square Foot, the Median Sales Price per square foot has decreased by 5.8% to $726.95, while the Median List Price per square foot has seen a slight decline of 1.7%, now at $874.35. These figures further emphasize the disparity between listing and selling prices, highlighting potential challenges for sellers in achieving their desired price points.
Sales activity in the Key West market shows mixed signals. The number of Homes Sold has increased by 8.6% to 101 units, suggesting a healthy demand despite the pricing challenges. However, Pending Sales have decreased significantly by 18.6%, indicating potential future slowdowns in closed transactions. New Listings have also declined by 8.3%, with 242 new properties entering the market, which may contribute to the rising inventory levels.
Inventory has increased by 11.1% to 1,169 units, and the Months of Supply have surged by 30.0% to 11.6 months. This increase in supply, coupled with the extended Median Days on Market, now at 165 days (a 90.0% increase), suggests a shift towards a buyer's market, where buyers have more options and negotiating power.
The average sale to list ratio has slightly decreased by 0.9% to 94.4%, indicating that homes are selling for less than their listed prices. The percentage of Homes Sold above list price has also decreased marginally by 0.4% to 5.0%. These metrics reflect the challenges sellers face in achieving their initial asking prices.
Price Drops have increased slightly by 0.4% to 18.8%, suggesting that sellers are adjusting their expectations to align with market realities. Additionally, the percentage of homes going off the market within two weeks has decreased by 5.5% to 25.0%, indicating a slower pace of transactions and potentially more cautious buyer behavior.
Overall, the Key West housing market in November 2024 is characterized by a notable decline in sales prices, increased inventory, and extended time on the market. While sales activity shows some resilience, the market dynamics suggest a shift towards more favorable conditions for buyers, with sellers needing to adjust their strategies to navigate the changing landscape effectively.
