The Key Largo real estate market is shaping up to be a hot one for buyers looking to cash in on a rising buyer’s market. We will see that the market for homes in nearby Key West slightly favors sellers — sales and listing prices are climbing in Key West, and fewer homes have been listed and sold lately. Key Largo, however, continues to attract luxury buyers who want to live in an exclusive style; this niche market is expected to favor buyers as we approach 2023.
Does a life of seaside adventure appeal to you? If so, you should consider living in Key Largo, one of the southern tips of the continental U.S. Let’s dive into the market forecast for 2023. Follow along with us as we explore the ins and outs of Key Largo real estate in the coming year.
Where the market stands today
To get a sense of how the Key Largo housing market could behave in 2023, let’s first lay out the details of what’s happening in Key West. According to the Key West Association of Realtors, the following statistics describe the market for homes in Key West as of October 2022.
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Average list price: over $1.7M, about 20% higher than October 2021
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Average sale price: over $1.2M, about 15% higher than October 2021
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Average sale time/days on market: 59 days
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Homes sold: 35, compared to 58 in October 2021
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New listings: 56, compared to 78 in October 2021
The above figures indicate that Key West is experiencing a seller’s market — possibly good news for buyers of Key Largo real estate. There are fewer homes in Key Largo than in Key West, and buyers are advised to take advantage of Key Largo’s buyer’s market rather than enter the market for Key West luxury homes.
Looking forward
Key Largo’s dominance in the south Florida real estate market is noteworthy for several reasons. The city is located just between the Everglades National Park and John Pennekamp Coral Reef State Park, where visitors can enjoy the only living coral barrier reef in the continental U.S.
This puts Key Largo at the center of south Florida’s most active and enduring ecotourism areas, which continues to drum up real estate interest for potential homebuyers and replenish local economies year-round.
But there’s much more to say about the future of real estate in Key Largo than its location. Indeed, 2023 promises to be one of the area’s most desirable years for housing investment.
Positive trends
The number of Key Largo homes for sale is steadily increasing. You can expect to find luxury homes with four or more bedrooms for reasonable asking prices. The average sale price for Key Largo homes is comparable to the $1.2M average in nearby Key West, but the average listing price is significantly lower. As more homes come on the market and investment in condos continues to rise, buyers are looking at more and more opportunities to cash in on a significant return.
Forecast trends for 2023
Now, let’s look at the market trends for the housing market in Key Largo in the coming year. After a sizable decline in prices in Key Largo real estate following the 2009 crisis, listing prices are expected to regain their pre-2008 values in the long term. In the past three years, the market for all residences in Key Largo climbed consistently: from an average of $620,000 to over $680,000 for all properties across the board. That’s about a 10% boost.
Why are we seeing such a renewed interest in real estate in Key Largo? There are many reasons, including:
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A limited amount of land keeps property values high
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High quality of life, good schools, and easy access to the ocean
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Temperate climate and an active social community
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High proportion of retiree, vacation, and seasonal buyers
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Monroe County rate of growth ordinances limits population growth
As luxury investors and real estate firms continue highlighting building projects in the area, the housing supply will only increase. Luxury villas and neighborhoods like Angler’s Club, The Cays, and the Dolphin Area are also set to bring new homeowners to Key Largo in great numbers, so 2023 is looking to be a historic one for real estate.
Major takeaways
The forecast for Key Largo homes for sale in 2023 is all but secure: all hands point to a continued boost in real estate values and the number of homes for sale. The median sale price is rising steadily too.
Of course, Key Largo goes through dips and crests in sale prices throughout the year, like all housing markets. We see prices climb in early spring and early fall in Key Largo, though the consistent weather and steady demand mean that the year is attractive for buyers. The number of days that Key Largo homes stay on the market has remained consistent through 2022. Home size has dropped slightly, a trend expected to continue as condo sales climb. Finally, the sale-to-list ratio should remain favorable for buyers in 2023 as demand shows no sign of wavering.
Get in touch with a local real estate agent today
If you have questions or comments about the Key Largo real estate market or the cost of living in Key Largo, contact your local agent Eric Woodward today! As part of Sotheby’s International Realty, Eric leverages global connections and local expertise for success in the niche markets of Key Largo and the Ocean Reef Club. His intangible qualities of work ethic and integrity are backed by over $325M in career sales volume. Before his career in real estate, Eric served Ocean Reef as the club’s head golf pro — he loves talking real estate and golf. Contact Eric today and learn how he can make your homeownership journey a success.
*Header photo courtesy of Shutterstock
*Header photo courtesy of Shutterstock
