Florida Keys Real Estate Market Update: October 2026

The Florida Keys real estate market is showing two important trends this October: home prices remain higher than a year ago, but new listings are arriving faster than properties are going under contract, and sellers are reducing asking prices to attract buyers.

Momentum Realty's live Monroe County market dashboard, refreshed October 26, reports a trailing-12-month median sale price of $907,500, an 8.5% year-over-year increase, and 1,209 active listings. Meanwhile, the brokerage's October 23 report on Florida Keys MLS activity recorded 144 new listings, 45 new contracts and 97 price reductions between October 9 and October 22.

For buyers, that combination may create more opportunities to compare homes and negotiate. For sellers, it reinforces the importance of realistic pricing, strong presentation and understanding the competition.

The takeaway: The Florida Keys market is not simply rising or falling. Prices, demand and negotiating conditions vary by property type, location and price range.

Sources: Momentum Realty's live Monroe County market dashboard and October 23 Florida Keys listing activity report.

1. Florida Keys Real Estate Market: Latest Numbers

The latest available reports provide two different views of the market: a rolling countywide overview and a short-term snapshot of listing activity.

Countywide market dashboard

Source: Momentum Realty · Monroe County Housing Market, refreshed October 26, 2026.

These figures describe the broader county market. The $907,500 median is calculated over a trailing 12-month period, so it should not be confused with the median price of properties newly listed in October.

The dashboard characterizes the market as balanced overall, while noting that the level of available supply puts pressure on sellers. Its indicators should be considered together rather than using one number to label every neighborhood a buyer's or seller's market.

Two-week listing activity: October 9–22

Source: Momentum Realty · Florida Keys Listings Outpace Contracts 3 to 1 in October.

The two-week numbers reveal a meaningful gap between properties entering the market and those moving into contract.

However, new listings and new contracts are different groups of properties. Their median asking prices do not establish the amount a typical buyer will pay or prove that market values have declined by the difference.

2. Why Are Florida Keys Home Prices Still Rising?

Despite signs of increased negotiating opportunities, the broader market's trailing-12-month median sale price remains up 8.5% year over year.

That does not necessarily mean every property has appreciated by 8.5%.

A median sale price measures the middle transaction in a particular period. It can change based on the mix of properties sold, including differences in location, size, condition, waterfront access and price range.

For example, a period with more luxury waterfront transactions may produce a higher median than a period dominated by smaller homes or condos.

To understand an individual property's value, buyers and sellers should examine comparable closed sales, current competition and the property's specific characteristics.

What buyers should understand

A rising countywide median does not automatically mean buyers must pay more than the asking price. Some sellers are reducing prices, and properties can have very different levels of demand.

What sellers should understand

An increase in the overall median does not guarantee that an individual home will sell at a higher price. A property's asking price should be supported by relevant comparable sales and its condition.

For additional context, see Momentum Realty's September 2026 Florida Keys Market Pulse, which discusses the difference between median sale-price changes and repeat-sale appreciation.

3. Sellers Are Cutting Prices: What the Latest Report Shows

One of the most notable findings from the October 9–22 report is the number of active listings with price reductions.

During the two-week period:

• 97 active listings had price reductions.
• The median reduction was $40,000.
• The median percentage reduction was 3.4%.
• Five reductions were 10% or more.
• The median dollar reduction increased from $30,000 in the previous comparison period to $40,000.

The report also found that single-family homes had a median price reduction of 3.6% across 63 reductions. The 11 condo price reductions had a median of 1.7%.

These figures suggest that some sellers are adjusting their expectations as competition increases.

They do not mean that every property is overpriced or that every seller will accept a lower offer. Price reductions are changes to asking prices, not necessarily reductions in final sale prices.

Why might sellers reduce their asking prices?

Common reasons include:

Limited buyer response. A property may receive fewer showings or offers than the seller expected.

Competition from newer listings. Buyers can compare similar properties and may favor homes offering better value.

Property condition. Buyers may account for repairs, updates or maintenance when evaluating a home's price.

Carrying costs. Insurance, taxes, utilities and maintenance can make a prolonged listing period expensive for sellers.

Changing expectations. Sellers may adjust their asking prices after reviewing market feedback and comparable sales.

For buyers, a price reduction can be an opportunity to investigate a property more closely. It is not, by itself, proof that the property is a bargain.

4. Which Florida Keys Communities Have the Most New Listings?

The October 9–22 report identifies Key West, Key Largo and Marathon as the three communities with the largest numbers of new listings among the locations highlighted.

Source: Momentum Realty's October listing activity report.

In each of these communities, more new listings than new contracts were recorded during the reporting window.

These are two-week counts, not monthly totals or long-term trends. Short reporting periods can fluctuate considerably, particularly in smaller communities.

Key West

Key West recorded 37 new listings and 11 new contracts. Buyers exploring the area should compare homes by neighborhood, property type and condition rather than relying on a single islandwide figure.

Historic properties, condos and waterfront homes can have very different costs and buyer considerations.

Key Largo

Key Largo recorded 29 new listings and five new contracts during the period.

For buyers, it may be worthwhile to compare properties based on mainland access, boating needs, flood exposure and insurance costs, as well as price.

Marathon

Marathon recorded 19 new listings and seven new contracts.

Buyers considering Marathon should compare the specific property and neighborhood, including access to everyday services, waterfront features and ongoing ownership costs.

Explore the Conley Group Florida community guides to learn more about living in different parts of the Keys.

5. Luxury Homes: Where the Gap Between Listings and Contracts Is Widest

The October listing report suggests that the largest gap between new supply and new contracts is concentrated in the upper end of the market.

For properties priced at $2 million or more, the report recorded:

• 46 new listings.
• Seven new contracts.

By comparison, properties listed below $1 million recorded 59 new listings and 25 new contracts.

This indicates that, during the reporting window, the lower price ranges recorded more contracts relative to new listings than the $2 million-and-above segment.

It does not establish that every luxury property is struggling or that luxury prices are declining. Individual waterfront estates and distinctive properties can behave differently depending on location, condition, dockage and other features.

What luxury buyers should consider

Buyers looking at higher-priced properties should compare:

• Recent comparable closed sales.
• How long similar properties have been listed.
• Previous asking-price changes.
• Insurance costs and flood exposure.
• Roof condition, maintenance and renovation needs.
• Dockage, seawall condition and water access, where applicable.

A luxury property's asking price is only one part of the decision. The total cost of ownership and the property's suitability for your needs are equally important.

What luxury sellers should consider

A premium property needs a pricing strategy supported by the right comparable properties. Presentation, marketing quality and an accurate explanation of distinctive features can also help buyers understand its value.

6. Is the Florida Keys a Buyer's Market or a Seller's Market?

The latest data does not support a simple answer for every property and community.

Momentum Realty's October 26 dashboard labels Monroe County's overall market as balanced. It also reports 7.7 months of supply, which is above the commonly used three-to-six-month range associated with a balanced market.

Meanwhile, the short-term report shows new listings outnumbering new contracts by approximately 3.2 to one during October 9–22.

Together, these figures suggest that buyers may have more choice and opportunities to negotiate on some properties. However, the broader dashboard also reports sellers receiving an average of 91.4% of original asking price, showing that final outcomes vary.

The market's position depends on the metric used, the reporting period and the property segment being evaluated.

For buyers

• Compare multiple properties before making an offer.
• Ask for recent comparable sales and listing history.
• Review price reductions without assuming they guarantee a discount.
• Obtain insurance quotes early.
• Consider the full cost of ownership.

For sellers

• Review current competition and comparable closed sales.
• Price the property realistically from the beginning.
• Monitor showings, inquiries and buyer feedback.
• Be prepared to reassess the asking price if the market response is weak.
• Evaluate offers based on price, financing, contingencies and likelihood of closing.

7. What Should Buyers and Sellers Watch Next?

As the Florida Keys moves further into the winter visitor season, several indicators will help clarify whether the current patterns continue.

New listings: Will the pace of new supply remain elevated?

New contracts: Will contract activity increase enough to absorb incoming inventory?

Price reductions: Will the number and size of reductions continue rising?

Days on market: Will properties begin going under contract more quickly?

Closed-sale prices: Will completed transactions confirm continued year-over-year price growth, or show different trends by property type and location?

These indicators should be reviewed together. New listings are not completed sales, pending contracts can fall through, and price reductions do not necessarily translate into lower final sale prices.

For the latest rolling countywide figures, consult the Momentum Realty market dashboard. For a monthly regional perspective, the Marathon & Lower Keys Association of REALTORS® market reports provide additional Florida Keys data.