The Sarasota Real Estate Market now has the largest available inventory for sale in the last 10 years. That includes all price categories in the area. In the lower to mid-price points, much is a result of stubborn interest rates stuck in the 6+% range, which creates affordability concerns for prospective buyers.
In the higher price points where mortgages are not often needed, the growth can be attributed to many sellers who were sitting on the sidelines for the last two years because of low available properties for them to move to when they sell their property. Now they are in a position where their “need” to move has been elevated due to family, health, or desire to transition to a different lifestyle (condo vs home), or just looking for something new.
Last summer and fall’s storms, elections, and other local as well as global dynamics slowed buyers from searching for new properties. The storms also contributed to many homeowners who do not want to repair or rebuild, adding their homes to the growing inventory for sale. In addition, condo resales are now being disrupted by the new burden to meet structural safety regulations.
Another factor in inventory comparisons to a decade ago is the dearth of construction in the Sarasota region resulting from the financial crisis in 2008 and for the many years following. Single-family home permits were issued for about 2,100 properties in 2005, falling to just 273 in 2009. When development finally ramped up again, it was still not reaching the pace of construction prior to that period and left us with years of under-met demand for new homes and condominiums. Only in the last four years have single-family home permits grown to exceed that pre-crisis volume.
Although overall activity in the Sarasota Real Estate Market has moderated, key data points in the luxury segment indicate stability. Prior to the pandemic, the average months of inventory for properties over $1 million was 18 months. Currently, market inventory stands at just over 7 months. Metrics such as days on market, sales, and pending sales remain favorable. According to data from Trendgraphix, the average sold price, median sold price, and sold price per square foot have remained relatively consistent over the past five years, despite fluctuations in inventory within this price range.
Homebuilder sentiment, as surveyed by the National Association of Home Builders, is still positive, however uncertainty in tariffs and employment is causing some to slow their pipeline until new strategies are stabilized. The hope for pro-development policies to make their way through the political system implementing several favorable regulatory reforms has many developers waiting anxiously to permit new projects.
With the surge in properties for sale in the Sarasota Real Estate Market, we have now surpassed the previously defined balanced market of 6 months of inventory. Typically, this would swing the balance of power to favor buyers, and in some cases that is true. However, buyers still feel that prices are too high after years of double-digit growth and many are reported to be hesitating to start their search hoping that prices will come back down.
Sellers are adjusting to the market shift, leading to more frequent price reductions on listings than in previous years. Buyers are not only negotiating lower prices but also persuading sellers to leave behind personal items like outdoor furniture and artwork that usually move with the seller.
Sarasota remains a top locale for those seeking a move to Florida. Our well-respected arts, culinary, waterfront attractions and more will continue to drive demand. Additionally, the two areas in Florida that we compete with the most for buyers is Naples where the median price is more than 60% higher than Sarasota’s, and Miami/Ft. Lauderdale/Palm Beach at 25% higher.
The housing market and economic conditions are always shifting and 2025 will be no different. Partnering with an agent who follows our nuanced local conditions is essential in navigating these changes to make informed decisions based on your goals. The Michael Saunders & Company Global Partners bring extraordinary opportunities to market our listings and attract international and domestic buyers. My approach to serving my clients is tailored to offer discreet and attentive representation for each client’s unique requirements.
With 40 years of experience in the Sarasota Real Estate Market, I offer valuable insights to help both buyers and sellers achieve their goals. With a keen understanding of market conditions, skillfully assessing and managing client expectations, and expertly negotiating property transactions, I ensure that your objectives are met. Furthermore, my extensive network of professionals, including architects, designers, contractors, and service providers, delivers additional concierge-like benefits. It would be a privilege to assist you, your family, and friends in buying or selling your property.
Below is a snapshot using data compiled from the Florida Association of Realtors showing January’s existing property market activity over $1,000,000 compared to prior year:
And now for my statistical report on the January Sarasota Real Estate Market activity:
Sales
- Total market dollar volume in January was $569.7 million which increased by $33 million from a year ago.
- The number of properties sold was 762, 65 more than a year ago. The monthly average in 2024 was 912, in 2023 was 953, and in 2022 it was 1,004.
- Florida’s single-family sales increased 3.6% from last year, and condo sales were 3.7% below last year.
- U.S. sales of single-family homes rose 2.2% and condos were down 2.4%.
- Of the closed sales in January, 116 were for over $1,000,000. In 2024 the monthly average was 124, during 2023 126 sales per month and in 2022 the average was 111.
- Florida homes sold for more than $1 million were up 12.5% over January 2024 and condos closed at over $1 million fell 3.2%.
- In January 967 listings went to a pending contract, an increase of 25 transactions from a year ago. There was an average of 860 monthly pending transactions in 2024, 1,159 per month in 2023 and 968 per month in 2022.
- Florida’s single-family pending sales decreased 4.1% and condominiums fell 13.7% compared to last year.
- U.S. pending sales in January were 5.2% behind a year ago.
Prices
- Single-family homes were sold at a median price of $530,000. The average monthly median price for 2024 was $505,500, in 2023 it was $510,000, and in 2022 it was $493,0000.
- In January, Florida’s median price for a single-family home was $410,000, a 1.2% increase over last year.
- The national median price for existing homes grew 5% to $402,000.
- The condominium median sale price was $347,000. The average monthly median price for condominiums sold in 2024 was 382,00, in 2023 it was $387,400, and in 2022 $383,000.
- The median price for a Florida condominium last month was $312,500, a 2.3% decrease from January 2024.
- U.S. median condominium price grew 2.9% to $349,500.
- Sarasota houses sold on average for $755,000 for the month. The annual monthly average was $715,00 last year, $695,000 in 2023 and 2022 $683,000.
- Condominiums sold for an average price of $732,000 in January. The annual monthly average was $729,000 in 2024, $622,500 in 2023 and in 2022 $563,000.
Inventory
- Currently there are 6,455 properties for sale in Sarasota, an increase of 1,064 listing from the end of December. At the beginning of 2024 there were 4,426 listings for sale, and in the beginning of 2023 2,431.
- The Sarasota market had 2,301 new listings in January. The market averaged 1,391 new listings in 2024, 1,318 in 2023 and 904 in 2022.
- Current inventory results in 6.4 months of single-family homes for sale in Sarasota and 8.5 months’ supply of condominiums.
- Florida currently has 5.1 months of single-family inventory and 9.1 months’ supply of condominiums. Florida’s inventory of properties selling for over $1 million has grown more than 17% over last year.
- U.S. inventory of existing single-family homes has grown 15.7% and condo inventory is up 24.4%.
