2024 was the slowest year this century for the number of real estate sales nationally.
While we felt the decline in the number of sales here in the Florida Keys, it was very slight at only 4.5% off from the 2023 sales pace. In fact, with an increase in the average sales price of 4.8%, the Dollar Volume of sales actually rose a little.
Most of the other market indicators might lead one to believe that all was generally well. The big news for 2024 was the continued increase in the number of sellers which has gained in excess of 18% year over year in the overall market.
The boost in inventory is most acute in the residential sector which is up 22%. That double-digit increase will continue well into 2025 as a result of more sellers deciding not to wait to put their property on the market, and fewer buyers being willing to wade into what they would consider to be a high-interest rate environment, coupled with uncertainty about the real estate market. We expect the increase in inventory to continue to rise above 2,500 listings which, based on the historical statistics for the Florida Keys real estate market, will result in a declining market, defined as a market with ever more sellers and fewer buyers.
A declining market will bring longer marketing times and, eventually, lower sales prices as well. We believe that 2025 will largely be characterized as a declining market.
See our statistical analysis of the Florida Keys Real Estate Market and its submarkets for a deeper analysis of both the residential and vacant land components of the Keys which comprise about 93% of the Dollar Volume of sales.
We've included a look at activity by property type including commercial sales along with a look at boat slips and business opportunities for a complete in-depth analysis of what took place in 2024.
Our 70-year experience with the ups and downs in the Florida Keys real estate market has proven that sellers who sell earlier in a declining market do better than those who ride the market downward. We are, therefore, counseling our sellers to price their properties to the current market in an effort to attract the fewer number of buyers which will result in earlier sales for the most motivated sellers.
