The Florida Keys residential market is showing notable strength in 2026, with higher sales activity and significantly more dollar volume moving through the market. From January 1 through August 20, 1,288 residential properties sold, up approximately 8% from 1,193 during the same period last year. Total closed sales volume climbed from $1.53 billion to $1.91 billion—an increase of roughly 25%—while the average sale price rose 15% to $1.48 million. At the same time, active inventory declined approximately 2%, suggesting that increased transaction activity is occurring without a corresponding rise in available supply.

The strength has been particularly visible in several of the Keys' higher-value markets. Islamorada recorded 104 sales, up 18%, while dollar volume increased 43% to nearly $212 million and the average sale price reached approximately $2.04 million, up 21%. Key Largo closed 223 sales, a 23% increase, with dollar volume rising 30% to approximately $276 million. Key West also remained active, generating more than $490 million in residential sales volume, up 16% year over year.

For the buyers and sellers waiting because they believe the market is headed downward, it’s worth looking beyond individual price reductions; Over the past five years, Keys real estate experienced substantial appreciation, followed by a period of stabilization rather than a broad reversal of those gains. Today’s market may actually offer a better buying environment without requiring falling property values: more negotiating room, fewer bidding wars, inspection protections, seller credits and motivated sellers, while long-term Keys values remain well above pre-2021 levels. Waiting for a major market correction that may never materialize can mean trading today’s negotiating leverage for higher prices or greater competition later. The better strategy is to identify where value exists in the current market rather than trying to perfectly time the bottom.