The Sarasota-Manatee real estate market currently shows contrasting trends between single-family homes and condos. While single-family home sales are up 6.2% year-over-year with stable median prices (down just 1%), the condo market faces challenges with inventory up 91% and months of supply nearly doubling to 6.5 months. This creates distinct opportunities for both buyers and sellers depending on property type and location.
Frequently Asked Questions About Sarasota-Manatee Real Estate
Is the Sarasota real estate market currently a buyer's or seller's market?
Statistically, the single-family home market remains slightly under-balanced (4.5 months of supply versus 5-5.5 months for balance), but practically speaking, it's functioning more like a buyer's market. The condo market has definitively shifted to a buyer's market with 6.5 months of supply, nearly double last year's inventory levels.
How long are homes taking to sell in Sarasota-Manatee County?
Single-family homes are currently taking about 41 days to go under contract (up from 23 days last year) and 84 days to close. Condos are taking slightly longer at 46 days to contract, and this timeframe is expected to increase further in upcoming months.
By how much are buyers able to negotiate in today's market?
Buyers are successfully negotiating around 5% off listing prices for single-family homes (95% of original list price) and about 7% for condos (93% of original list price). In some cases with motivated sellers, buyers have negotiated as much as $50,000 below what the seller originally paid.
What's happening with condo prices and fees in Florida?
Condo prices are starting to decline (down 2% year-over-year) due to new Florida laws requiring milestone inspections, increased reserves, and rising insurance costs. Many condo owners are seeing monthly fees nearly double, creating a challenging environment for sellers and opportunities for buyers willing to accept higher fees.
Are home prices falling in Sarasota?
Median home prices have remained relatively stable, down just 1% for single-family homes and 2% for condos year-over-year as of April 2025. However, individual properties, especially condos, may see more significant price adjustments depending on motivation and time on market.
Understanding the Sarasota-Manatee Real Estate Market in 2025
The real estate market in Sarasota and Manatee counties has been the subject of much speculation recently, with rumors of a market crash circulating among potential buyers and sellers. As local experts with decades of experience in the Florida Gulf Coast real estate market, we believe data tells the true story. April provides an excellent benchmark for market conditions as it follows the end of the first quarter and the peak seasonal buying period.
Single-Family Home Market: Steady Despite Headwinds
Looking at the single-family home market across Sarasota and Manatee counties reveals several important trends. Closed sales are up 6.2% year-over-year, indicating continued strong demand for detached homes in the region.
When analyzing prices, it's crucial to focus on the median sale price rather than average sale price. Some market commentators have highlighted the 8.8% increase in average prices as evidence of a robust market, but this metric can be misleading. A few high-end sales on Anna Maria Island or Longboat Key can significantly skew average prices upward.
The median price, which better reflects the true market condition, shows a modest 1% decline year-over-year. This aligns with the general market stabilization we've observed over the past 12-18 months.
Key Single-Family Home Statistics:
- Closed sales: Up 6.2% year-over-year
- Median sale price: Down 1% year-over-year
- Dollar volume: Up 15.6% (explaining why average prices are up while median prices are down)
- Median percentage of original list price: 95% (down from previous years)
- Days on market (time to contract): 41 days (up from 23 days a year ago)
- Time to sale: 84 days
What Today's Market Means for Sellers
The increasing days on market figure is particularly noteworthy for sellers. Many homeowners have become accustomed to the frenzied pace of the post-pandemic market, where homes often received multiple offers within days of listing. Today's reality requires an adjustment of expectations.
A properly priced home that shows well and is professionally marketed should still sell—it just takes longer than it did a year or two ago. The current 41-day average time to contract means that homes sitting on the market for 2-3 weeks is now normal, not a cause for concern.
Sellers should also be prepared for more negotiation than in recent years. The median percentage of original list price received is now 95%, down from nearly 100% during the height of the market. This means pricing strategy is increasingly important, and sellers need to work with agents who understand current local market conditions.
Inventory and Supply: Approaching Balance
One statistic that warrants close attention is the increase in new listings, up 17.7% year-over-year. This significant jump in available homes has pushed the months of supply to 4.5 months.
Real estate economists generally consider 5 to 5.5 months of supply to be a "balanced market," where neither buyers nor sellers have a significant advantage. At 4.5 months, we're approaching but still under this balanced threshold.
However, the practical reality of today's market feels more advantageous to buyers than the raw statistics might suggest. With pending sales up only 3% despite the much larger increase in inventory, buyers clearly have more options and less urgency than in previous years.
The Condo Market: Warning Signs Ahead
While the single-family home market remains relatively stable, the condominium and townhouse market presents a more concerning picture. Several factors have converged to create challenging conditions for condo sellers:
Recent Legal Changes Affecting Florida Condos
New laws in Florida have significantly impacted condominium associations and owners. These regulations require:
- Milestone inspections by engineers within 30 years of construction
- Increased reserve funding requirements
- Enhanced governance and oversight
- More stringent maintenance standards
These legal changes come at the same time as the ongoing insurance crisis in Florida. While recent legislation has started to address these issues and insurance companies are gradually returning to the state, many condo associations have experienced dramatic increases in insurance premiums in the interim.
The Financial Impact on Condo Owners
The combined effect of these factors has led to substantial increases in monthly condo fees, with many owners reporting that their dues have nearly doubled in recent months. This financial pressure has prompted many condo owners to sell, flooding the market with inventory.
Key Condo and Townhouse Statistics:
- Closed sales: Up 10.6% year-over-year (likely reflecting transactions initiated during the seasonal peak)
- Median sale price: Down 2% year-over-year
- Percentage of list price: 93% (indicating stronger buyer negotiating power)
- Days on market (time to contract): 46 days
- New pending sales: Down 17.7% (a warning sign for future closed sales)
- Inventory of active listings: Up 91% (nearly double last year's inventory)
- Months of supply: 6.5 months (well into buyer's market territory)
Is a "Condo Recession" Coming?
Some market observers have begun using the term "condo recession" to describe the current situation. While it may be premature to use this label, the statistics certainly point to significant challenges ahead for the condo market.
With inventory nearly doubling year-over-year and months of supply exceeding 6 months, condos have definitively entered a buyer's market. Many sellers are struggling to even secure showings for their properties, let alone offers.
While the official statistics don't yet show dramatic price declines, anecdotal evidence from transactions in progress suggests that significant price cuts are occurring. These will likely be reflected in the official data in the coming months.
Opportunities in Today's Market
For Buyers
Despite the challenges for sellers, today's market presents excellent opportunities for buyers:
Single-Family Home Buyers
Buyers are gaining leverage in negotiations, with motivated sellers sometimes accepting offers significantly below recent comparable sales. In some cases, homes are selling for $50,000 less than what the seller paid just a few years ago. This is particularly true for sellers who need to relocate quickly or who have vacant properties.
The increased inventory also means more choices for buyers, allowing them to be more selective and take time to find the right property rather than making rushed decisions.
Condo Buyers
For those comfortable with the higher monthly fees, the condo market offers even greater opportunities. Buyers who understand the long-term value proposition of condominium living in Florida's desirable coastal communities can find significant discounts.
Condos that may have been out of reach financially just a year or two ago are now more affordable, and sellers are often highly motivated to negotiate. This is especially true for buyers who can make cash offers or who aren't deterred by the recent increases in association fees.
For Sellers
While the market has shifted, well-prepared sellers can still achieve successful outcomes:
Single-Family Home Sellers
Homes that are properly priced, well-maintained, and professionally marketed are still selling, albeit on a slightly longer timeline. Working with an experienced agent who understands current market conditions and can implement an effective pricing strategy is essential.
Condo Sellers
Condo sellers face a more challenging environment and need to be realistic about pricing and preparation. Properties that stand out from the competition—through updates, staging, or competitive pricing—will have a better chance of attracting the limited pool of current condo buyers.
Regional Context and Future Outlook
It's important to note that looking at Sarasota and Manatee counties as a whole provides a broad market overview but may not reflect conditions in specific neighborhoods or communities. Some high-demand areas continue to perform better than others.
The data suggests that the single-family home market is likely to remain relatively stable, with modest price adjustments rather than dramatic declines. The condo market, however, may continue to face headwinds until the insurance situation stabilizes and associations adjust to the new regulatory requirements.
As we move through 2025, buyers moving to the Florida Gulf Coast will continue to find opportunities, especially if they're willing to negotiate and can act when they find the right property. Sellers need to be realistic about market conditions and work with knowledgeable local agents to position their properties effectively.
The Value of Local Expertise
In a changing market like today's, having an agent with deep local knowledge and experience becomes even more important. Understanding the nuances of different communities, being able to accurately interpret market data, and having established relationships with other professionals in the real estate ecosystem can make a significant difference in the outcome of your transaction.
As native Sarasotans with decades of combined experience in this market, the Zachos Realty & Design Group brings unparalleled insights and expertise to every client relationship. We've successfully navigated numerous market cycles and helped hundreds of clients achieve their real estate goals in both strong and challenging markets.
Ready to Explore Sarasota-Manatee Real Estate?
If you're considering buying or selling property in Sarasota, Manatee, or anywhere else on Florida's beautiful Gulf Coast, the Zachos Realty & Design Group is here to help. With over 40 years of local expertise and a unique combination of real estate knowledge and award-winning design vision, we can help you navigate today's market conditions to achieve your real estate goals.
Contact us today:
- Phone: 941-500-5457
- Email: [email protected]
- Sarasota Office: 205 N Orange Ave Suite 202, Sarasota, Florida 34236
- Venice Office: 217 Nassau St S, Venice, FL 34285
Visit our YouTube channel "Relocation Experts | Florida's Gulf Coast" for more insider guides to Florida's Gulf Coast communities.
