Real Estate Market Report; Florida Keys 2021

General Market Conditions

There is no doubt that realtors are having a pretty good year: the number of sales is appreciably higher, the days between listing and selling are significantly shorter, and the selling prices are markedly greater, than just a year ago.  Failing to anticipate the side effects of the COVID-19 pandemic on the real estate market, many were caught by surprise.  As soon as lock downs started to lift, the Florida Keys saw a large increase in  cash flush homebuyers seeking single family homes and condos where they could social distance and enjoy the outdoors, where the weather was warm and masking requirements were less, where taxes were low and sunsets magnificent, and where margaritas never tasted better.  We began to see properties sell in a matter of days, sellers receiving multiple offers, properties selling for higher than asking price, and buyers waiving contingencies, often with quick closing cash offers.

For the moment it is a strong Seller’s market; but how long will it last?  Zillow, in a recent article expects 2021 to be “a year unlike any other” even factoring in that there may be a return to cities as economies reopen.  Thinktanks, such as “Housing Center,” believe increasing home prices will be balanced by low mortgage rates and high personal financial liquidity, keeping demand for new and existing homes high, at least through 2021.  The only thing keeping somewhat of a lid on it all seems to be the lack of homes for sale.  The inventory of listed homes in the Florida Keys is half what it was just two years ago.

If you are a chart person, you will find at the bottom of this page several PDF files displaying two years of trends of the number of sales, the median sales price, the number of days from listing to contract, and the number of properties for sale (inventory).  I have kept single family homes separate from condominiums and the monthly data points are 6-month rolling averages, used in order to smooth out seasonal fluctuations and spikes created by outlying sales that can skew things in a relatively small market like the Keys.  Mobil homes and vacant lots have been excluded from the data, but if you have an interest in this information, reach out to me on the contact page and I will gladly share that information with you.

The Florida Keys Real Estate Market – September 2021 Update

Home Buyers Discover Inventories are Low in the Keys

We are experiencing upward pricing pressures on properties due to an increase in the number of buyers and a decrease in the number homes for sale.  Single-family homes offered for sale in the Florida Keys Multiple Listing Services (MLS) as of July 31 totaled 404 compared to 1,169 two years ago, skipping the COVID year of 2020, a 65.4% decrease.  As for condominiums, only 91 were listed compared to 410 on July 31, 2019, a 78.8% decrease.

Florida Keys Properties Selling in Half the Time

Part of the reason home inventories are down in the Florida Keys, is that those that are being listed are not remaining on market for long.  There existed as of July 31 a 2.0-months inventory of single-family homes, compared to the nationally accepted benchmark for a balanced market, a market favoring neither buyer nor seller, of 5.5 months.  There was 1.3-month inventory of condominiums available.  Of the single-family homes sold this year through July, the average time between the listing date and contract date was only 38 days compared to 92 days for the same period in 2019.  Condominiums have gone to contract in an average of 5o days compared to 107 days two years ago.

Home Price Increases Not Seen in the Florida Keys Since 2005

Driven by multiple offers, often from cash buyers, it is not unusual to see owners agreeing to sell their homes at prices higher than they were asking.  Year-to-date through July, single-family homes closed at a median sales price of $840,000 compared to $605,000 in 2019, a two-year increase of 38.8%.  Cash only was used to purchase 37.1% of these single-family homes.  Condominium increases were more modest, closing at a median sales price of $480,000 this year, an increase of 7.0%.  However, condo price increases in the up-scale condo and townhome communities such as Mariner’s Club Key Largo, are seeing increases like the single-family homes, especially for the water view units.  Cash was used to purchase 45.1% of the condos sold thus far in 2021.

Another strength of market indicator is the ratio of sold price to list price.  With single-family homes the average ratio in July 2021 was 97.8% compared to 91.8% in 2019, while with condos the average sales to list price was 98.7% compared to 92.1%.

(Information for this report comes from Florida Realtors® with data provided by Florida’s multiple listing services compiled monthly from MLS feeds.)