The Sarasota and Manatee County real estate markets continued their move into a more balanced environment in March, with single-family home activity showing signs of stability even as the condominium and townhouse sectors faced mounting challenges from rising ownership costs and surging inventory.

According to the Realtor Association of Sarasota Manatee (RASM), in Sarasota County, sales of single-family homes totaled 817 for the month, up 13 percent from a year earlier. The increase also marked a 38.7 percent gain over February, a reflection of seasonal strength and lingering demand.

But median prices told a different story, declining 8.8 percent year-over-year to $469,450. Inventory also rose sharply, with active listings reaching 4,412, a 30.8 percent increase from last March. The market now holds a 6.9-month supply of homes—by most measures considered a buyer’s market. 

In neighboring Manatee County, single-family home sales fell 8.5 percent year-over-year to 668, though they climbed more than 33 percent from February. The median sale price rose modestly, to $506,317, up 1.5 percent from March 2024, marking the highest price point since June 2024. Inventory levels reached 3,256 active listings, or 5.2 months of supply.

Rigo Rivera, broker and owner of Listify Inc. in Sarasota, said uncertainty was a major factor in buyer and seller behavior last month. “March felt like a heart attack for the market,” he says. “When there’s that level of uncertainty, between interest rates and tariffs, people pause.”

He also notes that many homeowners are suffering from the aftermath of a brutal hurricane season that brought unexpected flooding even to homes in east Sarasota. That's also driving people to list their homes.

With sales up and prices down, Rivera pointed to out-of-state investors as a dominant force, citing continued interest from New York, New Jersey, California and Michigan. “Most of the activity right now is investor-driven, whether local or from out of state," he says. "Some are buying second homes, but a lot are viewing properties as long-term investments."

As for condominiums and townhouses, challenges have intensified, particularly in Sarasota County. Condo sales fell nearly 20 percent year-over-year, with 324 units sold. Median prices dropped by 10.2 percent, to $346,500, while inventory grew to 2,714 active listings—a 9.7-month supply, firmly in buyer’s market territory.

Rivera attributed much of that sector’s slowdown to sharply rising costs. “The condo market is being hit hard by insurance and HOA fee increases. In some communities, monthly fees are now as high as the mortgage on an entry-level unit priced around $250,000,” he says. “That has entirely priced out first-time buyers. I haven’t seen one in about a year.”

Across Florida, similar trends are unfolding. The cost of owning a condominium has ballooned, with some owners facing doubled insurance premiums, special assessments, and HOA fees nearing or exceeding $1,000 a month. Sales are slowing, and many communities are flooded with listings. 

Indeed, statewide, condo prices have declined between 1 and 6 percent year-over-year since July 2024. Older buildings, in particular, have seen sharper drops, with units over 30 years old depreciating by more than 20 percent in the past two years. New regulations passed after the 2021 Surfside collapse require stronger reserve funds and structural inspections, but compliance has lagged. Fewer than 25 percent of associations have submitted required reports, according to The Wall Street Journal.

Manatee County’s condo market showed slightly more resilience. Sales increased 6.4 percent year-over-year, totaling 300 units. The median price fell just 1.3 percent, to $338,395. Still, time to contract rose to 62 days, and the average time to sale climbed to 106 days. Inventory reached 1,816 units—an 8.2-month supply.

Rivera says seller expectations need to shift in response. “If a seller wants to move their property, they need to be aggressive and realistic," he says. "Make the home move-in ready, consider helping with closing costs and be flexible on price.”

Looking ahead, he says the next few months will likely be shaped by interest rates and hurricane season. “We’ve got a hurricane hangover in this market,” he says. “Interest rates need to come down closer to 5 percent to really open things up. Right now, affordability’s still a problem for locals.”

For now, both Sarasota and Manatee continue to firmly step away from the extreme highs of the pandemic-era housing boom. Sales are steady, but buyers have more leverage. Prices are uneven. And in the condo sector, ownership costs are reshaping who can afford to stay.