February 2026 real estate activity across the Florida Keys showed a market that is tightening in inventory but strengthening in pricing. Keys-wide, total active listings were down 1% year over year, while new listings declined 18% and properties under contract dropped 41%, signaling continued absorption and disciplined inventory flow. Despite slightly fewer closings (down 3%), overall sold volume increased 15% and the average sale price rose 19% to approximately $1.54M, reinforcing upward price pressure in the luxury and waterfront segments.

In Key Largo, active inventory dipped 2% year over year, but sold volume surged 77% and average sale price increased 3%, reflecting strong buyer demand for Upper Keys waterfront properties. Islamorada saw inventory down 3% and transactions down 45%, yet average sale price jumped 67% to over $3.35M, indicating continued strength in the luxury tier despite fewer overall sales. Marathon posted one of the most notable gains, with sold volume up 128% and average sale price up 64%, demonstrating renewed momentum in mid-Keys investment and waterfront properties.

This activity is occurring alongside historically low mortgage interest rates, which are improving purchasing power and encouraging both primary and secondary homeowners to enter the market earlier in the year. The combination of constrained inventory, strong luxury demand, and favorable financing conditions continues to support pricing stability and upward pressure across the Florida Keys.

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