Key West Real Estate Market: Q3 2026 Update

September 30 marks the end of the third quarter and, in many ways, the end of Key West’s traditional slow season.

And now things start getting fun again.

Over the next several months, our seasonal residents begin returning, visitors increase, restaurants get busier, events fill the calendar, and more prospective buyers find themselves walking through Key West neighborhoods again.

Real estate tends to follow that same seasonal rhythm.

Inventory traditionally begins to build as homeowners prepare for the winter selling season, while more buyers physically return to the island and start seriously considering their next move.

So, after 9 months of 2026, where does the Key West real estate market actually stand?

The numbers tell an interesting story.

The Big Picture: More Sales, Higher Prices, and More Time

Through September 30, 2026, 325 homes sold in Key West, compared with 315 during the same period in 2025.

That is a 3% increase in closed sales.

But transaction volume is only part of the story.

Here is how 2026 compares with the first 9 months of 2025:

The takeaway is not simply that prices are going up. There is more nuance than that.

More homes are selling, average sale prices are higher, but homes are taking longer to sell.

That combination tells us a lot about today's Key West buyer.

They are still here. They are still buying. But they are taking their time.

Prices Are Higher, But Price Per Square Foot Is Almost Identical

This may be one of the most interesting numbers in the entire report.

Average sold price increased 8% year over year, from approximately $1.45 million to $1.56 million.

Yet average sold price per square foot barely moved at all.

It was $992 per square foot through September 2025.

It is $991 per square foot through September 2026.

That is essentially unchanged.

So how can the average sales price be up 8% while price per square foot is flat?

Part of the answer can be found in what is selling.

More transactions are occurring in Key West’s higher price ranges, which is pulling the overall average sales price higher even though the average price buyers are paying per square foot has remained remarkably consistent.

That distinction matters.

It suggests we are not simply watching every property on the island appreciate by 8%. Instead, the composition of sales is shifting toward more expensive homes.

The Luxury Market Is Becoming an Even Bigger Part of the Story

When we entered off season in June, we pointed out the strength we were seeing at the upper end of the market.

Three months later, that trend has become even more pronounced.

Through September 30:

$2M to $3M: 41 sales, up 30% from 2025

$3M to $4M: 18 sales, up 14%

$4M+: 16 sales, up 54%

Meanwhile, sales below $1 million declined 13% year over year, from 141 transactions to 130.

The contrast becomes even more interesting when we look back 2 years.

Compared with the first 9 months of 2024, sales of homes priced at $4 million or more are up 69%.

Sales between $2 million and $3 million are up 49%.

Yet total Key West home sales are actually 4% below 2024 levels.

In other words, Key West is selling slightly fewer homes overall than it did 2 years ago, but considerably more homes at the upper end of the market.

That is a significant shift in the composition of the market.

What Happened During Off Season?

Back in June, we wrote that Key West was shifting, not simply slowing. At the time, homes were taking longer to sell, buyers had more breathing room, and sellers needed to be increasingly strategic.

The numbers through September reinforce that.

At the end of May, average days on market stood at 103 days.

Through September, that number has increased to 108 days.

For comparison:

2024: 78 days
2025: 91 days
2026: 108 days

That is a 32% increase in average marketing time compared with 2024.

But longer marketing time has not translated into fewer transactions compared with last year.

That is important.

Buyers appear willing to wait for the right property and the right terms. Sellers, meanwhile, have to recognize that simply putting a home on the market is not enough.

• Presentation matters.

• Pricing matters.

• Marketing matters.

• And patience matters.

Now Key West Starts Changing Again

October marks one of our favorite transitions of the year.

The summer heat begins to ease. Fantasy Fest arrives. Seasonal residents start returning. Restaurants become busier. Boats fill the harbor. Events return to the calendar.

And the population begins to grow. Real estate inventory often follows.

More homeowners traditionally bring properties to market during the fall and winter because they know that more prospective buyers will physically be in Key West.

For buyers, that can mean more choices.

For sellers, it can mean more potential buyers, but also more competition from other listings.

That is why the next several months will be particularly interesting.

What This Means for Buyers

The end of off season does not necessarily mean the end of opportunity.

There may soon be more homes to choose from as seasonal inventory enters the market.

At the same time, there will likely be more buyers here to see them.

The 108 day average marketing time tells us that many properties are not disappearing overnight. Buyers can often take a more thoughtful approach than they could during the frenzy of a few years ago.

But the best properties are their own market.

A beautifully renovated Old Town home, an exceptional waterfront property, or something truly unique can behave very differently from the overall statistics.

That is why understanding the individual property matters just as much as understanding the market.

What This Means for Sellers

For sellers, the coming months bring opportunity, but they also bring competition.

More buyers returning to Key West is good news.

More listings coming to market means those buyers will have choices.

That makes the first impression increasingly important.

A property needs to be positioned correctly from the beginning with thoughtful pricing, exceptional photography, strong presentation, broad exposure, and marketing designed to reach the buyers most likely to appreciate it.

The market is moving.

It just is not forgiving unrealistic expectations as quickly as it once did.

The Bigger Picture

Perhaps the most encouraging part of the third quarter numbers is how resilient the Key West market remained through the traditionally quieter months.

• Through September, sales are up 3% from 2025.

• Average sold prices are up 8%.

• The $2 million and above segments continue to show considerable activity.

And all of this occurred while average days on market increased to 108 days.

That is not a market where buyers have disappeared. It is a market where they have become more deliberate.

And as we enter the months when more people, more properties, and more energy return to the island, we will be watching closely to see how that balance changes.

Who You Work With Matters

Key West has never been a market that can be fully understood through a single statistic.

The average sales price does not tell you what is happening in every neighborhood.

Price per square foot does not account for condition, location, historic significance, waterfront access, lot size, or the dozens of other characteristics that can dramatically affect value here.

And island seasonality adds another layer entirely.

The numbers give us the map.

Experience helps us understand where we actually are on it.

Whether you are considering buying, preparing to sell, or simply keeping an eye on the Key West market, our team is always happy to talk through what these numbers mean for a particular property or situation.

Who You Work With Matters,

THE SPOTTSWOOD TEAM
Terri Spottswood, John Spottswood III, Ted Stewart, Raymond Vazquez
305-432-4848
[email protected]
Truman & Co. Real Estate