The Sarasota and Manatee county real estate markets are cooling down compared to the same period in 2023, according to July 2024 data, as evidenced by longer median times to contract and more inventory. In fact, inventory levels have risen significantly in both counties, leading to a more balanced market, and this month's numbers mark the highest inventory levels since 2019.

Inventory for single-family homes in Sarasota County increased by 59.5 percent, to 3,068 listings, a 4.8-month supply. Generally, a balanced inventory supply hovers between four months and six months.

July numbers also show the median sale price has decreased year-over-year, and the median percent of the original list price received by sellers to close a deal has decreased. That points to more wriggle room in negotiations between buyers and sellers.

The median time to contract in July 2024 was 52 days, up 108 percent, with the median time to sale increasing by 28.8 percent, to 94 days, another indication of a healthy market.

 "Buyers are happy to hear they have more negotiating power, time and inventory to choose from," says Annabel Serio, a Sarasota-based real estate broker associate with Charity & Weiss International Realty. "Drops in listing prices of roughly 6 percent to 7 percent are becoming more commonplace."

Still, “while pricing remains competitive compared to some out-of-state markets, for locals, the prices are still high," Serio says. Interest rates, which are hovering at 7 percent for a 30-year fixed mortgage, also remain high.

In Sarasota County, closed sales for single-family homes remained stable, with a slight year-over-year increase of 1.4 percent to 642 sales. The median sale price dropped by 12.1 percent, to $470,000, and sellers received a median of 93.1 percent of their original list price, a 3.3 percent decrease compared to July 2023.

In Manatee County, the single-family home market saw a 9.9 percent increase in closed sales in July, with 686 transactions, compared to 624 in July 2023. 

What’s ticking down is the median sale price, which decreased slightly, by 3.1 percent, to $499,000—probably reflecting the strength of the luxury market in pricey Manatee County neighborhoods like Anna Maria Island and Longboat Key. Sellers received a median of 95.8 percent of their original list price, a 1.3 percent decrease compared to July 2023.

Listings in Manatee County rose by 55.2 percent, to 2,488, resulting in a 3.9-month supply of inventory. The median time to contract grew by 79.3 percent, to 52 days, and the median time to sale increased by 19 percent, to 100 days, compared to July 2023.

"This is a balanced market, which is better for both sides," Serio says. "We want both parties to feel good about their deal. Negotiations can look like the seller helping with closing costs or they may help with seller financing. You couldn't talk about these things for roughly three years before now."

As for the condo market, sales, cash transactions, inventory and time to contract are all up. The townhouse and condo market in Sarasota County saw 285 sales in July, a 7.1 percent increase year-over-year, with 60.7 percent of sales as cash transactions, almost 17 percent more than in July 2023. 

Inventory for townhomes and condos in Sarasota County increased by 72 percent, to 1,777 listings, resulting in  5.7-month supply of inventory—or what most would see as a buyer’s market. The median time to contract increased by 86.1 percent, to 67 days, and the median time to sale rose by 55.8 percent, to 120 days.

Condos' median sale price decreased by 6.3, percent to $365,000, with sellers receiving a median of 92 percent of their original list price, a 3.5 percent decrease compared to July 2023.

Serio attributes those numbers to new condo safety regulations that have to be met by the end of this year. Intending to prevent another tragedy like the collapse of the Champlain Towers South condo building in Surfside, which killed 98 people, Florida legislators passed structural safety regulations in 2022 and 2023. Condo associations face a deadline of Dec. 31, 2024, to comply.

She adds that the increase in cash sales is probably due to buyers undercutting strict insurance standards, which demand updated engineering reports on building safety that some condo associations don't yet have. Condo sellers may find that non-compliance could lead to insurers dropping their coverage, leading to buyers who can’t acquire a mortgage and owners who must sell for cash.

Manatee County condo market numbers market tell a similar story, with the townhouse and condo market seeing a 9.6 percent decline in closed sales year-over-year, resulting in 225 sales. Just over 50.2 percent of them were cash transactions. The median sale price decreased by 6 percent, to $329,000, and sellers received a median of 92 percent of their original list price, a 3.9 percent decrease compared to July 2023.

Inventory levels for townhomes and condos in Manatee County increased by 68.1 percent to 1,261 listings or 5.6 months of inventory—also a buyer's market. The median time to contract rose by 63.8 percent, to 77 days, and the median time to sale increased by 33 percent, to 121 days.

Says Serio: “It may feel like a cooling down, but it’s more of a return to normalcy."