The average listing price in Key West* as of March 2017 was $823,045 which is up 11.99% from last years average listing price of $734,904. The average sale price in Key West* also took a giant leap from last year with an average sale price of $760,804 compared to 2016’s $637,184; a 19.40% increase.
What about time on market, how long are these houses sitting on the market before going under contract? The average time on market was 119 days compared to 2016’s 132 days; a 9.85% decrease. Homes in the $350K-$650K range are “flying off the shelves”, accounting for almost half of the residential sales YTD for 2017.
Key West is one of the hottest vacation rental markets in the United States, topping Forbes list in 2015 as America’s #1 vacation destination. While home prices have been on the rise in the Florida Keys there are still excellent investment opportunities available for the savvy buyer. For a home with a transient rental license you can generally expect between 8-10% return on your gross purchase price. For a home with a non-transient rental license you can expect between 4-5% return on your gross purchase price.