I have a dwarf key lime tree planted in my back yard in a very sunny location for over a year now. It is planted in the ground. It has a lot of leaves and gets new growth of leaves. I recently (about 3 months ago) had long branches growing off of some other branches, that reminded me of suckers. They were about 4 feet long and grew straight up out of the center of the tree, off center branches. They did not have flowers or fruit so I cut them off. It gets a 6 minute a day watering from a sprinkler that is pretty much directly on the trunk itself. I give it a lot of water when it is hot in the summer, maybe 2 times a week. Since I planted it in the ground it has never had much fruit. I think there was one lime, that never ripened, I think it was dry (??) and a few flowers that eventually fell off. I think that if I could do something now it might set flowers that should be fruit by late winter. If I can figure out a way to post a photo, I will do that tomorrow, because the sun has already gone down. I am in southern California and my tree is in full sun from about 9:00 am-3:30 pm.
Had the same experience with mine. First I made sure the neighboring tree was cut back and gave it more sun. Then I found the undersides of the leaves had an aphid, white, that laid eggs? on the underside of the leaves. This aphid in turn attracted black ants. Together the ants and aphids destroyed the blooms. Two years ago I got one big lime, it was almost solid rind. Last year I started spraying the tree with different citrus sprays to remove the aphids. I was told if they go the ants go. This year I started spraying the ants with a citrus/ant spray. I now have about 4 fruit and 6-8 blooms.
The Key lime (Mexican lime), being a tropical tree, is very sensitive to cold, and even cool night time temperatures. In California and most of Florida, key limes can be grown well only in very protected locations in if a good crop is ever to be achieved. Even in Florida, which is generally warmer and more humid than California, Key limes are grown in the extreme southern portions of the state, or in the Keys. It thrives in a warm, moist climate with a high annual rainfall between 75 and 130+ inches. Good growth and fruit production is achieved by the periodic addition of lime to raise the pH. In soil with a lower pH, the fruit develops thick skins. For the two trees mentioned above, it is always going to be a up hill battle to obtain a good crop of fruit growing in their present location, unless the tree are located in a very protective location, that supplies additional warmth. - Millet (1,275-)
Well, Key/Mexican Limes are quite a bit smaller than the other varieties. Are you near the beach. I am at the beach in Malibu and everything I read about this lime said it needed more heat than I get here. I kept moving my Mexican Lime around and finally found the perfect place for it-----up against a west facing wall and now it bears limes almost all year long, last year I had so many I took a basket to the Farmers Market every week and traded them. Before found that special spot for it my tree behaved very much as you describe.
PS These limes are ripe when they turn YELLOW. I love these limes, they have a great, strong perfume and a strong and somewhat sweeter taste---Great G$TS, Margaritas and Bloody Marys. I mix juice and zest in butter for Corn on the Cob.