The Upper Keys real estate forecast for 2023 might well bring a mixed bag of results. This is largely due not only to current market factors but other elements unfolding and evolving both Nationwide and on the microeconomic level. So, let's take a look at the possibilities for the residential real estate market in the upper Keys for 2023.
Since the Upper Keys consists of a few areas, most notably Key Largo, we'll use the most current figures from that particular location, as it's most indicative of the larger area. Before we get started, it is important to understand that these figures will likely change over the course of the next few months, and most definitely going into next year.
Currently, there are several hundred homes up for sale in the area, with more than three hundred available for purchase in Key Largo alone. Right now, in the Upper Florida Keys, the median list price stands at just above $1.2 million, with a median list price per square foot of $725, and a median selling price of $780,000. And presently, the sale-to-list price ratio is very high, standing at just over 97% for all recent transactions. This means that properties are essentially selling at just 3% below their asking price, which is very good news for sellers.
Conversely, there is also some good news for buyers in the fact that the median days on the market are nearly three months long, coming in at 86 days. Additionally, the area is inundated with active listings, meaning there are more homes listed for sale than buyers seeking to purchase, making the Upper Keys a buyer's market.
However, there are a number of factors that point to an eventual, if not a sustained, slowdown in the housing market in the Upper Florida Keys. First and foremost is the increasingly expensive interest rates that have cooled many residential markets across the country. As the Federal Reserve continues to raise rates, buyers are less likely to jump into the market and make a purchase.
What’s more, persistent inflation is substantially reducing purchasing power, negatively affecting buyers and sellers alike. Another factor that comes into play is the slow pace of new construction, which gives buyers less choice.
Although with the influx of new residents, the state is experiencing, the demand for housing will undoubtedly rise, which means buyers will face more competition and sellers will have more opportunities.