October Market Update: What’s Really Happening in Key West Real Estate

Pumpkin Spice Season has hit The Florida Keys and while we may not get the crisp autumn air that typically accompanies it we do have a fresh look at what’s going on in the Key West housing market.

Prices: Up, Down, and Everything In Between

Let’s talk numbers. As of late summer, the median listing price in Key West is hovering around $1.5 million, up about 4.5% from last year. On the flip side, Zillow shows the average home value closer to $1,032,000, actually down 5.6% year-over-year.

Confused? Don’t be. It just means some sellers are aiming high with list prices, while buyers are negotiating smart. The silver lining? Homes are still selling strongly, with the average price per square foot hitting $1,027, which is 4% higher than last year.

Inventory & Market Pace: More Choices, Slower Moves

If you felt like the market was moving at lightning speed in recent years, you’ll notice things have cooled a bit. Homes are now averaging 77 days on the market, compared to just 52 days in 2023. That’s nearly a month longer, giving buyers more breathing room.

Inventory is also picking up. Across Florida, we’re seeing about 5.4 months of supply, which means more options are popping up—and the days of multiple offers in the first 24 hours are less common.

Mortgage Rates: A Breath of Fresh Air

Here’s some good news for buyers: mortgage rates have dipped to the lowest we’ve seen in almost a year. That little drop can make a big difference in monthly payments, especially in a market like Key West, where prices are on the higher end.

What This Means for You

If you’re buying: You’ve got more time, more options, and (thankfully) slightly better financing conditions. This fall could be the perfect time to snag a home before winter buyers flood the market.

If you’re selling: Price it right. Homes that match today’s market reality are still selling strongly, but overpriced listings are sitting and eventually getting reduced. Staging, marketing, and transparency (think insurance and flood info) go a long way in winning serious buyers.

Looking Ahead: October Into Season

Key West is settling into a more balanced market. We’re not in the frenzy of 2021–2022 anymore, but that’s not necessarily bad news. Sellers can still capture solid value, and buyers finally have room to negotiate without feeling rushed.

As we move into the season, we expect demand to pick up again. The snowbirds are preparing to fly south for the winter and serious buyers are always ready to act once they hit the island.

Quick Market Snapshot

Metric	Status (Fall 2025)
Median Listing Price	~$1.5M (+4.5% YoY)
Average Home Value	~$1.03M (-5.6% YoY)
Sold Price per Sq. Ft.	$1,027 (+4% YoY)
Days on Market	77 (slower sales)
Mortgage Rates	~6.5% (10-month low)
Market Vibe	Balanced, opportunity-rich

October is shaping up to be an interesting month in Key West real estate. Buyers finally have some wiggle room, while sellers who play it smart are still closing strong deals. With season right around the corner, take advantage of this window of opportunity with reduced rates & a surplus of inventory to make your Florida Keys homeownership dreams a reality.