Statistics recently released show that the number of properties listed for sale in Key West has hit a 5 year high - now over 1400 properties. This number is roughly three times the number of houses normally on the market, and 40% above a year earlier.
The rapid increase in the number of properties is astounding, but may be understating the weakness in the market. Many properties have been removed from the mls listings waiting for better prices. The wait for better prices may be significant, especially when the large number of developments underway begin to hit the market.
After the jaw-dropping rise in home prices over the past 5 years, there is plenty of room on the downside.
Currently, I've noticed Key West home prices have already been reduced by at least 20%, and the few that are selling are seeing increased selling times and further sales price discounts.
Next week is a well advertised auction for 22 Key West properties signaling the abundance of sellers.
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