The real estate market is a dynamic entity, constantly shifting and responding to a multitude of factors, from economic conditions and interest rates to demographic shifts and natural disasters. The Florida Keys, renowned for their stunning beauty and appealing lifestyle, possess a housing market that is no exception to this dynamism. In this analysis, we'll delve into the key statistics of the single-family homes housing market in the Florida Keys for the months of August 2023 VS August 2022

Closed Sales: A Significant Decrease

In August 2023, the Florida Keys witnessed a notable decrease in closed sales for single-family homes. There were 83 closed sales, marking a 38.1% decrease compared to August 2022, which saw 134 closed sales. This reduction in closed sales indicates a shift in demand as well as decreased supply.

 

Cash Transactions: A Dip in the Cash Market

The proportion of cash transactions in the market also experienced a decline. In August 2023, there were 37 homes purchased with cash, reflecting a 19.6% decrease from the 46 cash transactions recorded in August 2022. This might imply changes in the prevalence of cash transactions compared to financing methods. This trend is the opposite of what we would expect with higher interest rates, this is a trend to keep an eye on.

 

Median Sale Price: A Decrease in Value

The median sale price for single-family homes in the Florida Keys saw a decrease of 10.3% from August 2022 to August 2023. In 2023, the median sale price stood at $1,616,315, while it was notably higher at $1,802,433 in August 2022. This reduction might imply a potential adjustment in property values and reduced buying power with higher interest rates.

 

Time Factors: A Change in Market Dynamics

The median time to contract and the median time to sale both exhibited noteworthy shifts. The median time to contract in August 2023 increased by 32.4% compared to the previous year, jumping from 34 days in 2022 to 45 days in 2023. Similarly, the median time to sale also increased by 24.3%, rising from 74 days in 2022 to 92 days in 2023. These changes highlight alterations in market dynamics and buyer-seller interactions.

 

Listings and Inventory: A Mixed Bag

The number of new listings in August 2023 decreased by 11% compared to August 2022. In 2022, there were 129 new listings, whereas in 2023, this number dropped to 145. On the other hand, pending inventory saw a 19.5% decrease, falling from 174 in 2022 to 140 in 2023. In contrast, the active inventory experienced a 16.4% increase, rising from 524 in 2022 to 610 in 2023. These variations suggest a complex interaction of factors affecting listing activity and available housing inventory.

 

In conclusion, the Florida Keys single-family homes housing market witnessed shifts and adjustments in various key metrics from August 2022 to August 2023. The decrease in closed sales, cash transactions, median sale price, and new listings, alongside an increase in median time to contract, median time to sale, and active inventory, reflect a changing landscape in the real estate market. Understanding these changes is crucial for both buyers and sellers in navigating the market effectively and making informed decisions. As we move forward, it will be intriguing to monitor how these trends evolve and influence the housing market in the Florida Keys.

 

For more information on buying or selling in the Florida Keys you can call (305) 451-2111 or message us.  You can also read the FULL REPORT provided by the Florida Realtors.