The Island Estate Report - September 2025

Dated: September 2 2025

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Key West Market Update

The Key West residential market remains active, but pricing and pace continue to adjust as buyers grow more selective.

August 2025 vs. August 2024 (YOY):

  • Absorption Rate: 9.22 months, up 4.4% – showing more inventory relative to sales.

  • List Prices: Average asking prices fell 5% to $1.85M, while the median dropped 11.6% to $1.35M.

  • Sale Prices: Average sale price slipped 2.5% to $1.49M, but the median rose a strong 15.1% to $1.2M—proof that well-positioned homes are still commanding offers.

  • Days on Market: Average time to sell shortened from 118 to 101 days, but the median rose 26% to 92 days, suggesting some homes are moving quickly while others linger.

Year-to-Date (Jan–Aug 2025 vs. 2024):

  • Median Sale Price: $1.11M, up 11% YTD, underscoring long-term price strength.

  • Average Sale Price: $1.44M, up 4.7% YTD.

  • Absorption Rate: 10.68 months YTD, up 9% from last year.

  • Time on Market: Average DOM is 87 (up 8.8%), with a median of 62 (up 10.7%).

What It Means

The story isn’t about demand disappearing—it’s about buyers being more value-driven. Homes priced with strategy are still selling, often at stronger median levels than last year. Homes priced with “wait-and-see” optimism are taking longer to move.

If you’re considering selling, a smart pricing strategy—or a timely adjustment—can be the difference between sitting on the market and securing a serious buyer.

FEATURED PROPERTY OF THE MONTH

27 EVERGREEN AVENUE, KEY HAVEN | $3,250,000

Welcome to a spacious and beautiful 3,019 square foot, 4-bedroom, 3.5 bath canal-front home in Key Haven. This property offers a flexible floor plan with room for home offices, multiple gathering areas, and a comfortable layout for family living or entertaining.

Enjoy direct boating access from your backyard canal and the convenience of a 60 ft dock. Upgrades include a new metal roof in 2019, new exterior paint in 2022, freshly painted interior, hurricane shutters for all openings, a one-car garage, and generous lower-level storage.

Step into your own private retreat, where a heated swimming pool with a soothing waterfall creates a resort-style, serene atmosphere. Enjoy views of the open water from your numerous balconies and get ready for gorgeous sunsets.

https://damianvantriglia.bhhskeysrealestate.com/property/204-615993-27-evergreen-avenue-FL-33040

REAL ESTATE TIPS

PRICE REDUCTIONS

Why a Price Reduction Might Be the Smartest Move You Can Make

“I’m not lowering the price unless I get an offer.” It’s a common sentiment, and I get it, no seller wants to feel like they’re negotiating against themselves. But here’s the truth: sometimes not adjusting the price is exactly what keeps buyers from engaging in the first place.

What’s Happening in Today’s Market

Right now in Key West and the Lower Keys, we’re seeing more price reductions. Not because the market is crashing—far from it—but because some listings came out with optimism, not strategy. And when a home sits too long without activity, buyers start to wonder what’s wrong with it—even if the only issue is the number on the price tag.

What the Market Is Telling Us Right Now

In Key West and the Lower Keys, August data shows a market that’s still active—but selective:

  • Absorption Rate rose to 9.22 months, up 4.4% year-over-year, showing buyers have more inventory to choose from.

  • List Prices are easing: the average list price fell 5% from last August, while the median dropped nearly 12% year-over-year.

  • Sales Prices are mixed: the average sale price dipped slightly –2.5% year-over-year (up 4.7%YTD), but the median sale price jumped 15%, meaning buyers are moving decisively at the right price points.

Why Price Positioning Matters More Than Ever

Holding firm on price might feel like strength—but from the market’s perspective, it can signal that a home is overpriced. When buyers see a listing sitting, they assume something is wrong, even if the only issue is the number on the tag.

A smart price adjustment doesn’t mean failure—it signals awareness, flexibility, and a real intent to sell. In fact, in today’s market, the sellers who act are the sellers who win.

The Bottom Line

Buyers are still buying—509 sales so far this year, nearly even with 2024. But they’re data-driven and selective. A small, well-timed adjustment can make all the difference between a home that sits and a home that sells.

#COMMUNITY

FATURED BUSINESS: THE KEY WEST HOTEL

Welcome to The Key West Hotel, fully renovated and reimagined, tucked into the lively energy of Duval Street yet hidden in its own private oasis. Two distinct buildings—one a lovingly restored Victorian-style conch house, the other a contemporary poolside haven—encircle a lush courtyard with a sparkling swimming pool at its center. By day, savor the gentle island breeze under swaying palms; by night, step just beyond our door to explore the vibrant pulse of Key West.

https://www.thekeywesthotel.com/

FEATURED LOCAL EVENTS

FANTASY FEST KEY WEST

SAVE THE DATE - October 23rd:

Berkshire Hathaway Keys Real Estate | Knight & Gardner Realty invites you to a Fantasy Fest tradition, our Keys-wide Parade of Homes Mega Open House Event. October 23rd 11am - 3pm. Spend the day exploring a curated collection of homes from Key Largo to Key West, each with its own unique story to tell. As you tour, you'll be entered for a chance to win four VIP tickets to our exclusive Fantasy Fest Parade Viewing Party on Saturday night. Hosted at our Duval Street office, this private event features food, drinks, and one of the best views of the official Fantasy Fest Parade. 

 

KEY WEST WORLD CHAMPIONSHIP

November 2nd - 9th, 2025

Step into the exhilarating world of Race World Offshore, where the ocean becomes a high-speed battleground for cutting-edge boats and fearless competitors. Welcome to Race World Offshore, where every moment is a celebration of nautical prowess and the relentless pursuit of victory on the offshore racing stage.

 

NEED HELP MANAGING YOUR PROPERTY? Berkshire Hathaway HomeServices offers full-service property maintenance, Vacation Rental, and Property Watch services. Get in touch

Blog author image

Damian Vantriglia

Born and raised in Key West, Damian Vantriglia’s connection to the island and its vibrant community fuels his passion for helping clients achieve their real estate goals. As a Berkshir....

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