August showed more inventory in the North Port-Sarasota-Bradenton metropolitan statistical area (MSA) housing market and higher prices than the previous year, according to the latest monthly report from Realtor Association of Sarasota and Manatee (RASM). Although MSA sales declined by less than 1 percent compared to last year, Manatee County’s single-family home sales stood out against Sarasota’s with an almost 7 percent increase.

Median sale prices for both single-family homes and condos increased year-over-year. For single-family homes, the median sale price in Sarasota increased by 9.2 percent, to $519,000, while Manatee County’s remained the same at $525,000. In the condo market, Sarasota prices increased by 2.8, percent to a median price of $385,650, while Manatee County condo prices increased by 1.8 percent, to $358,990. 

“Low inventory is holding prices up on stilts," says Eric Hill, an area realtor with Exit Bayshore Realty. “There’s still such an influx of people moving here from Illinois, New Jersey, New York and Pennsylvania who are tired of the cold and figure that even if they take a pay cut in salary, they have no state income tax and get to live 20 minutes from the beach.”

Probably due in part to increased interest rates compared to recent years—rates are roughly 8 percent now, compared to 3.5 percent last year—housing inventory increased year-over-year for the 16th consecutive month. 

In Sarasota County in August, there was a 3.3-month supply of single-family homes and a 3.5-month supply of condos, compared to 2 months and 1.6 months year over year, respectively. In Manatee County, single-family home supply increased from a 2.5-month supply to a 2.8-month supply, and condo supply increased from 1.8 months to a 3.3 months. Generally, five to six months of inventory is considered par for a balanced market. More than six months leads to a buyer's market; less than five months creates a seller's market. 

As recent reports have shown, the biggest changes compared to last year were seen in days homes are on the market, which continue to spike.

Single-family homes in Manatee County went under contract within a median of 33 days, compared to 13 days last year. Sarasota County homes went under contract in 31 days, compared to 14 days last year. The condo market is showing the highest number of days from listing date to contract date since 2020, with 50 days in Manatee County compared to 13 days last year, and 46 days in Sarasota County compared to 14 days last year.

“Homeowners aren’t desperate to sell and don't want to lose out on their low-interest rate. More days on the market tell us sellers aren't rushed and they want the number they want,” Hill says. “They’re also still riding the coattails of the boom we saw post-pandemic."

Hill adds that buyers who depend on traditional financing are disappointed with current interest rates and pricing, "But they're going ahead and paying these prices if the house is right," he says.

The number of properties that went under contract last month decreased for both property types in both counties. For single-family homes, pending sales decreased year-over-year by 13.5 percent in Sarasota and by almost 5 percent in Manatee. For condos, pending sales decreased by almost 21 percent in Sarasota County and by 4.7 percent in Manatee. County. August marks the fifth consecutive month that pending sales in the condo market have fallen from the previous month.

What's leading buyer wishlists?

"Newly remodeled homes. As long as the homes are in the right area with the updates [buyers] want, homes are still selling. Two years ago, homes that needed work were flying off the shelf," Hill says. "Now, if there's no pool or updates, they will sit."