The housing market in Sarasota and Manatee counties continued its cooldown in October, with notable declines in sales, extended transaction times and increased inventory across property types, according to the latest data from the Realtor Association of Sarasota and Manatee (RASM).

Single-family home sales dropped year-over-year in both counties, reflecting a slowdown attributed to broader economic pressures and the impacts of Hurricanes Helene and Milton. In Sarasota County, sales fell by 4.3 percent compared to October 2023, with 515 transactions recorded. The median sales price, while steady month-to-month at $490,000, marked a 5.8 percent decrease from last year. Cash sales in the county, often a marker of investor activity, declined by 13.7 percent, accounting for 39.6 percent of transactions.

Inventory in Sarasota County rose significantly, with 2,952 active listings, a 21.8 percent increase from October 2023. The market supply remained stable at 4.7 months—considered a healthy number. Time to contract climbed to 49 days, a 69 percent year-over-year increase, and the median time to sale rose 34.3 percent, to 94 days.

David Crawford, broker/owner of Catalist Realty in Sarasota, notes that properties previously unavailable are now entering the market as some owners face financial constraints tied to rising insurance premiums, property taxes, and the high costs of rebuilding to current standards post-hurricane damage.

"Investors are taking notice of these opportunities," Crawford says, noting that many investors have the resources to build new homes on lots where existing structures may no longer meet modern codes. However, that's still in the early stages, as many owners remain in the insurance claims process, delaying major decisions until the financial picture becomes clearer.

Crawford anticipates a more defined trend toward the end of the year when owners must decide whether to rebuild, sell or explore other options. “It’s a crossroads—scrape and rebuild, renovate and stay, or sell as is,” he says. 

Meanwhile, Manatee County saw a steeper 22.8 percent year-over-year drop in single-family home sales, with 470 transactions in October 2024. Prices remained steady, with a median of $479,990, while cash sales made up just 30.2 percent of closings, down 7.9 percent year over year. Inventory in Manatee increased by 19.6 percent, to 2,385 listings, with a stable supply of 3.9 months–as in Sarasota County, that's considered a healthy number. However, time to contract surged to 60 days, a 106.9 percent increase from the prior year.

Despite the overall cooling of the market, certain segments remain active. Move-in-ready homes are still attracting buyers who want to avoid the unpredictability of renovation projects. Older homes that need significant updates are more challenging to sell, however, as buyers are wary of labor shortages and potential cost overruns post-hurricane, especially as homeowners with damaged homes are vying for workers.

“The homes that need renovations are being passed on,” says Crawford. “People don’t want to get caught up in labor challenges, even if materials aren’t as big an issue right now.”

The townhouse and condominium markets in both counties also saw declining activity. Sarasota County recorded an 18.7 percent decrease in sales month over month, with 200 units sold. Median prices edged up slightly month over month, to $385,277, while the average sales price soared 100.8 percent year-over-year, driven by strong performance in the luxury segment. (Word has it many sales at the St. Regis Residences, the ultra-luxury condo development on Longboat Key, closed in October.) However, inventory rose nearly 20 percent, with a supply of 5.5 months. Median time to contract increased by 87.5 percent to 60 days.

In Manatee County, condo and townhouse sales fell by 24.7 percent, with 162 units sold. Median prices declined 11.4 percent, to $327,990. Inventory jumped by nearly 40 percent, with 1,285 active listings and a six-month supply. Median time to contract doubled to 75 days, with the median time to sale rising 61.5 percent, to 126 days.

The condominium market has also faced ongoing unique challenges due to new milestone inspection requirements and legislative changes, placing financial strain on many homeowners' associations. While newer construction is seeing demand, older buildings are struggling to meet updated safety standards, causing assessments to rise sharply.

Crawford highlights the unintended consequences of these changes. “The upfront costs for older condos are squeezing owners, many of whom are on fixed incomes,” he says. However, newer condos in downtown Sarasota have fared better, with some developments even experiencing a slight uptick in demand due to their ability to weather the recent storms without significant damage.

These shifts suggest a market recalibrating from the frenzied activity of recent years. While higher prices remain, particularly in the single-family home sector, the overall trend points to cautious buyers and a longer sales process. Hurricane Milton and other storms likely played a role in the slowdown, disrupting transactions and influencing buyer confidence in storm-prone areas.

As the Sarasota market recalibrates, Crawford emphasizes adaptability for both buyers and sellers, especially on the barrier islands. “We’re serving as sounding boards, helping clients navigate these unprecedented times calmly and methodically,” he says. For sellers, updating homes to meet buyer expectations can yield strong returns, while investors are poised to benefit from opportunities created by changing market dynamics.

Despite the challenges, confidence in the region’s long-term prospects remains strong. Underscoring the enduring appeal of our area, Crawford says, “There’s no shortage of people bullish on Sarasota’s future."