The Sarasota and Manatee housing markets began 2025 with rising inventory, longer sales timelines and declining prices—once again signaling a shift toward more favorable conditions for buyers. According to the January 2025 report from the Realtor Association of Sarasota and Manatee (RASM), inventory levels in all market sectors except for Manatee County’s single-family homes now favor buyers.

Hailey Kendall, a realtor with William Raveis, attributes the inventory growth to multiple factors. “Sellers who’ve been holding off are testing the waters,” Kendall says. “There’s economic uncertainty, concerns about hurricanes and interest rates are still seen as high. Buyers just aren’t entering the market with the same confidence. The influx of new construction is also adding thousands of units to the inventory."

Sarasota County single-family home inventory rose almost 31 percent, from 4.9 months to 6.4 months. Manatee County inventory, meanwhile, increased from 3.9 months to 4.6 months, an increase of almost 18 percent.

The highest level of inventory is seen among condos, with Sarasota County condos now at 8.5 months versus 6.2 in January last year. In Manatee, condo inventory rose by almost 43 percent, from 5.6 to 8 months inventory. Generally, more than six months of inventory signals a buyer's market.

Although inventory is outpacing sales, sales are up. Single-family home sales rose in both counties, with Sarasota County recording 520 sales in January, a 6.8 percent increase year-over-year, and Manatee County seeing a more pronounced 22.1 percent rise, to 498 sales. However, median sale prices softened. Sarasota’s single-family median price slipped 1 percent, to $529,750, while Manatee’s declined 8.6 percent, to $480,000.

Townhouse and condo markets showed even more pronounced shifts. Sarasota County’s condo sales grew 15.8 percent, to 242 transactions, though the median price dropped 17.4 percent, to $347,000. In Manatee County, sales fell 7 percent, to 172 units, with a 6.1 percent price dip to $335,990.

Kendall notes the challenge older condos face. “Buyers want modern spaces with high ceilings and updated codes," she says. "It’s tough to sell an older condo when new construction is popping up everywhere.” There's also the increase in monthly fees many owners have seen, brought on by new legislation prompted by the Surfside Condo collapse. That's causing some condo owners to list their units.

The median percent of the original list price received ticked down for all home types in both counties, falling between 1.2 and 3.1 percent. And homes are taking longer to sell across the board. In Sarasota County, the median time to contract for single-family homes increased to 45 days, a year-over-year increase of 12.5 percent. Manatee’s single-family market saw a median contract time of 49 days, a 40 percent increase, respectively. Townhouses and condos mirrored the trend, with Sarasota condos taking a median of 53 days to go under contract, a 51.4 increase over last January 2024. 

"Buyers have more negotiating power now," Kendall says. “They’re negotiating seller credits for things like remodeling or insurance costs. Buyers not only have more options to choose from, they can extend the closing date and ask for more time for due diligence periods, where they might uncover other points they can add to negotiations.”

Outside of Manatee County’s single-family homes sector, which remains balanced, all other sectors have tipped into buyer’s market territory. “With so many options, prices are under pressure,” Kendall said. “In Venice, new homes that were listed around $1.5 million last year are now in the $800,000s. Buyers are motivated by the opportunity to get what they couldn’t a year ago.”

Kendall highlights growing activity in vacant land sales along Siesta Key, Longboat Key and Sapphire Shores, with never-before-available land now up for grabs as those who survived the hurricanes deal with the pressures of selling a home they can't afford or don't care to rebuild, cashing in on the dirt beneath it. "New money is coming in for people to tear down and build new, and lots are fetching millions," she says.

Behind the scenes, inventory is even higher. “There’s a lot happening off-market, too. Some sellers prefer privacy or are dealing with properties held in trusts, so testing the waters first that way can give sellers an edge," Kendall explains.

Foreclosures remain low but have increased in the single-family sector, too. The North Port-Bradenton-Sarasota metro area recorded 11 single-family home foreclosures in January, up from 5 the previous year. (Condo foreclosures remained nonexistent.)

Looking ahead, Kendall expects continued price adjustments. “New construction with modern standards is attractive, especially for buyers from the Northeast who are concerned about storms,” she says. “But with so many choices, sellers need to price competitively and market their homes more aggressively.”

For a look at 2024 local real estate numbers, click here.