Florida KeysAugust 2025 Real Estate Forecast

As we head into August, the Key West real estate market is showing clear signs of transition. Recent trends from June give us valuable clues about where things are headed this late summer.

If you’re buying, selling, or simply watching the market, here’s what you can expect for each of our major zip codes in the coming weeks:

📍 33040: Key West, Stock Island & Lower Keys

June data showed the average sale price slipping to ~$1.18M (down 16% YOY) and median sale price at ~$838K, with properties taking an average of 90 days to sell, over 30% longer than last year.

✅ August Prediction: Expect continued buyer leverage. Inventory is moving (absorption rate 10.9 remains healthy), but with sellers adjusting pricing. Buyers this August can negotiate harder, especially for homes lingering on the market. Sellers should consider sharper pricing or offering concessions to stand out.

📍 33042: Sugarloaf to Little Torch Key

June’s numbers showed strong absorption (11.5), but average sale prices were down ~30% year-over-year to ~$1.58M. Median sale price ticked up slightly to ~$1.12M, indicating mid-range homes are still in demand.

✅ August Prediction: We expect stable demand for well-priced mid-market listings, while overpriced luxury homes may sit longer or see price cuts. Buyers can look for deals in the higher ranges as sellers respond to slower movement there. Inventory is solid, offering choice and negotiating room.

📍 33043: Big Pine Key

June was the standout performer. Average sale price jumped 31% YOY to ~$985K, with median sale price up 50% to ~$935K. Days on market fell sharply, showing fast turnover.

✅ August Prediction: Expect continued strength and competition in this zip code. Demand remains high for $900K–$1M listings, with inventory moving quickly. Sellers can stay firm on pricing if properties show well. Buyers should act decisively here to avoid bidding wars.

🌴 Key West Overall: What to Expect in August

• High absorption rates across all three zip codes mean properties are still selling, but price sensitivity is up.

• 33040 and 33042 will see more negotiation and price trimming as sellers compete.

• 33043 is likely to hold value and move quickly, especially for well-prepared listings.

• Interest rates and seasonal slowdowns could keep some buyers cautious, adding opportunities for those ready to act.

Key West’s real estate market remains vibrant but nuanced. For buyers, August brings real chances to negotiate in some areas while moving quickly in hot spots. For sellers, success will mean smart pricing, staging, and marketing to stand out. Ready to talk strategy for your move? Let’s connect and make the most of this unique Key West market!