The Key West, FL metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased to $990,000, marking a significant year-over-year decline of 7.9%. This downward trend in sales prices contrasts with the Median List Price, which has risen by 4.3% to $1,249,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics further illustrate this divergence. The median Price Per Square Foot has decreased by 4.3% to $772.20, while the Median List Price per square foot has increased by 4.2% to $900.76. This suggests that while sellers are listing properties at higher prices, the actual sales are occurring at lower price points, possibly due to market corrections or buyer negotiations.

In terms of sales activity, the number of Homes Sold has increased by 14.4% year-over-year, reaching 127 units. However, Pending Sales have decreased by 13.1% to 173, indicating a potential slowdown in future sales activity. New Listings have also declined by 6.7% to 293, which may contribute to the reduced Pending Sales figures.

Inventory levels have risen by 7.7% to 1,423, providing more options for buyers in the market. Despite this increase, the Months of Supply have dramatically decreased by 70.0% to 11.20 months, suggesting that the market is absorbing inventory at a faster rate than before, possibly due to the increased number of Homes Sold.

The Median Days on Market have increased by 21.0% to 112 days, indicating that homes are taking longer to sell. This could be a result of the higher list prices not aligning with buyer expectations, leading to extended negotiation periods or price adjustments.

The average sale to list ratio has seen a slight increase of 0.3% to 94.8%, suggesting that homes are selling closer to their list prices compared to the previous year. The sold above list ratio has also experienced a marginal increase of 0.2% to 4.7%, indicating that a small percentage of homes are still selling above their list prices.

Price Drops have increased by 4.1% to 29.1%, reflecting sellers' adjustments to align with market conditions. Additionally, the percentage of homes going off the market in two weeks has risen by 2.1% to 20.2%, suggesting that some properties are still attracting quick interest and offers.

Overall, the Key West housing market in February 2025 is characterized by a decline in sales prices and an increase in list prices, with mixed signals in sales activity and inventory levels. Buyers and sellers alike may need to adjust their strategies to navigate this evolving market landscape effectively.