What to Expect from Key West Real Estate in 2022

What to Expect from Key West Real Estate in 2022

Many real estate trends across the country and within Monroe County will have an impact on Key West real estate in 2022. Use this list to consider several key factors of what to expect from Key West real estate if you intend to buy or sell a home in 2022.

Rising house prices

Key West’s county, Monroe County, Florida, is seeing a steady rise in house prices. The cost of housing within Monroe County has been steadily increasing over the last several years. Just in the past year, house prices were up more than 21%. The Reuters quarterly housing market poll saw 57% of analysts predicting a double-digit increase in nationwide house prices this year. This prediction directly connects with the trends in Key West real estate.

Seller’s market

The double-digit increase in house prices predicted in the Reuters quarterly housing market poll directly correlates with their prediction that 2022 will remain a seller’s market. There is currently a high demand to purchase homes while there is a low supply of homes for sale. If you are considering adding your home as one of the homes for sale in Key West, now may be the perfect opportunity. Sellers are in the best position they could be in to make the most out of their home sale this year. And they have the ability to include necessary contingencies to meet their needs.

Homes sell fast

Due to the seller’s market predicted to continue well into 2022, homes for sale in Key West are selling fast. Homes frequently enter contracts within a few days of listing. If you are looking to buy a house during this seller’s market, you too need to be ready to act quickly. The median time for Monroe County property, which includes Key West real estate, to be on the market is 63 days. This is half the time it took to sell a home the previous year.

But even 63 days is a long time compared to how quickly some properties go during this seller’s market. Often, a home will be listed on a Thursday, viewed over the weekend, and receive multiple offers by the following Tuesday. When you look at any homes for sale in Key West that you think might be your dream home, you need to be prepared to make an offer and take the next steps immediately. You will want to make sure your finances are in order, and you have a professional team ready to start the process almost as soon as you view the house.

Even then, your offer may not be accepted. In a seller’s market, sellers have the upper hand. Buyers often need to make sure certain aspects of their offer are in place before their offer will be considered. Sellers tend to choose offers that do not have contingencies for the buyer, have a large gap between the asking price and the maximum amount they’re willing to offer compared to others, the highest down payment, and the most flexibility to what the seller needs. A seller’s needs could include an agreement of a gap between buying the home and moving in as the seller waits for their home offer to go through on their new home.

Technological increase

One trend in nationwide real estate that will impact homes for sale in Key West is the increasing use of technology throughout the homebuying process. Less than one percent of people looking to buy a home use print materials to find a property. This is a direct reflection of the shorter amount of time that homes spend listed on the market. Print moves too slowly to keep up with the current demand for housing.

Nearly half of people who are looking for a home to buy go online before going anywhere else. If you are looking to sell your Key West real estate in the near future, you will want to make sure that your home looks and sounds as good online as it does in person. If the online listing for your home doesn’t make it look and sound appealing, many potential buyers won’t bother reaching out to view it in person.

Sale of aging condos

One trend that will specifically be seen in southern Florida, including Key West, is the sale of aging condos. As undeveloped land disappears and more people from across the country move to Florida, developers are looking toward buying old properties to redevelop into luxury homes. Many condominium complexes are beginning to age, which is causing a rise in maintenance and repair costs. Many of the repair costs are now falling on the shoulders of those who own the condos, as the prices are too high for condominium associations to cover.

Development companies are reaching out to homeowners who live in older properties that are prime locations for redevelopment and offering to buy their property. These developers are presenting high, appealing buyout offers, which, combined with costly maintenance fees, are causing many people to consider selling their homes who had not considered doing so in the past.

While not all of these offers go through due to bidding wars or internal disagreements about whether the property should be sold, it ultimately comes down to economics. Developers are paying prime prices for prime real estate. Many homeowners see this as an ideal situation – they get out of paying expensive maintenance fees, and they make a hefty profit off of their home, which is often well above market value.

Buying or selling Key West real estate?

Now that you know what to expect from Key West real estate in 2022, you’re ready to begin the process of buying or selling a home. You will want to work with a real estate agency that is knowledgeable about Key West and the surrounding areas. Since 2010, Ocean Sotheby's International Realty has been the premier real estate agency for the luxury real estate market in the Florida Keys. Reach out to Ocean Sotheby's International Realty when you are ready to make your Florida real estate vision come to life.

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