The real estate market in Sarasota and Manatee counties experienced a summer dip in sales and median prices, according to the latest data from the Realtor Association of Sarasota and Manatee. As the market prepares for the traditionally busier winter months, inventory remains high, while closed sales and median prices continue to decrease. Adding to the complexities of the market are the Federal Reserve’s recent interest rate cut and uncertainty surrounding the upcoming presidential election.

In Sarasota County, closed sales for single-family homes saw a 1.9 percent year-over-year decrease, with 633 homes sold in August. The median sale price remained stable, rising slightly by 1.1 percent to $475,000. Sellers, however, received an average of 93.7 percent of their original list price, a decline of 2.2 percent compared to last year.

"Sellers are often over-listing, with some who bought five years ago asking for almost double today with investments made in the home," says Taylor McFadden of Coldwell Banker. "There are still lots of dreamers until they figure it out when it doesn't sell."

More than five months of inventory is generally associated with a buyer's market, indicating there are more homes available than buyers. Inventory levels stayed higher than in August 2023, with 2,907 active listings (a 4.6-month supply of single-family homes), though the time to contract shortened to 45 days from 52 in July. In August 2023, it was 31.

In Manatee County, the single-family home market remained steady, with a 0.2 percent decrease in sales compared to the same period in 2023, amounting to 615 transactions. The median sale price dropped by 1 percent to $494,000. Sellers in Manatee County received 95.3 percent of their original asking price, a slight 1.4 percent dip from last year. The region saw 2,496 active listings, equating to a 3.9-month supply of homes, and the median time to contract was 54 days, an almost 64 percent increase compared to August of last year.

In the townhomes and condos sector, Sarasota experienced a sharp decline, with closed sales dropping by 22.2 percent compared to last year. And the median sale price fell to $345,000 last month, down from $365,000 in July. Sellers also saw a lower return, receiving 91.6 percent of their original list price, down by 2.9 percent. Inventory dropped slightly to 1,672 active listings, representing a buyer's market of a 5.5-month supply.

In Manatee County, townhouse and condo sales dropped by 11.2 percent year-over-year, with 215 sales. The median sale price remained consistent at $329,990, while sellers received 90.2 percent of their original list price—a 5 percent year-over-year decline.

"Folks who inherited or bought their condo 30 years ago and are on fixed incomes might get hit with a sudden assessment of $10,000 and the fees are driving them out," says McFadden. "The buyers are looking at these assessments and increasing HOA fees and don't want to sign up for them. I've seen some go up by as much as 100 percent."

Condo associations must build up reserve funds or complete repairs ahead of the new legislation that followed the fatal collapse of the Champlain Towers South in Surfside. If a building contains at least three habitable stories, a “milestone inspection” is now required once the building reaches 30 years old. Another milestone inspection is then required every 10 years after that.

The associations will be responsible for the costs arising from the milestone inspections, and structural integrity reserve studies must be completed at least every 10 years after the condominium’s construction, with the initial study completed by Dec. 31 of this year. After that deadline, an association may no longer vote to waive or underfund its reserves, and unit owners won’t be able to opt out.

This week’s 0.5 percent cut to interest rates by the Federal Reserve is the first since the early days of the pandemic, and the Fed also hinted at the possibility of another 0.5 cut by the end of the year, with rates potentially dropping by a full percentage point by 2025.

"It's too soon to measure those effects, but suffice to say the lending office was pretty pumped about the news," says McFadden.

The upcoming presidential election in November is adding another layer of uncertainty to the real estate landscape. Historically, election years have seen buyers delay major financial moves, and many potential "buyers are hesitant and less confident," McFadden says, citing future policies that might affect tax incentives for homeowners or new regulations that affect mortgage lending.

As for the recent activation of the National Association of Realtors settlement, "it's something we haven't had to navigate before so it's new territory," says McFadden. "You have to have more conversations from the start with buyers about compensation, and it can sometimes lead to sticker shock for them."

"We should remember that in a few months, there's going to be a lot of activity," he adds. "Based on my experience, the winter months and high season keep us busy."