A new buzzword being used by economists and industry experts is “Financial Flexibility” when referring to today’s affluent buyers. Now that prices have stabilized and inventory is rising, buyers in the upper strata are seeking real estate as a valuable investment strategy in our dynamic financial marketplace.
Luxury buyers are still in pursuit of investment opportunities in premier locations, such as Sarasota and its prime waterfront and extraordinary lifestyle. While sales have softened some since last year, you can see in the attached chart that there has been limited fluctuation over the last two years. In fact, sales of homes over $1 Million have averaged 132 per month in the last 25-months – and in May 132 homes in the price point were sold.
In reviewing the greater Sarasota Real Estate Market, it was interesting to see that the price point with the most year-over-year positive change was in the $250,000-400,000 price tier. Developers have been very active in filling the desperate need in both homes and condos to replenish the inventory for this high-demand category.
In the mid-price range of $500,000-999,000 notable change is underway. Inventory in this category has grown 15% year-over-year, while sales have decreased by 42%, and days on market increased 19%. The buyer in this tier is more highly dependent on a mortgage than the upper echelon. Due to the erosion of liquid assets that could be used for financing options, potential buyers may be waiting for stability in the financial markets before considering a purchase.
Pending sales in the Sarasota Real Estate Market outpaced prior year, which gives optimism for the summer months ahead. Most market analysts are projecting sales to continue to be sluggish through the summer. When interest rates do begin to retreat and volatility in the financial markets calms, a return of sidelined buyers is expected…and there will be plenty of available properties for them to consider!
As the housing market and economic conditions are always shifting, partnering with an agent who follows our nuanced local conditions is essential to make informed decisions based on your goals. My approach to serving my clients is tailored to offer discreet and attentive representation for each client’s unique requirements.
At Michael Saunders & Company our Global Partners bring extraordinary opportunities to market our listings and attract international and domestic buyers. My 40 years of experience in the Sarasota Real Estate Market adds valuable insight to help both buyers and sellers achieve their goals. With a keen understanding of market conditions, deftly 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.
Katie and I will be taking some much-needed time off and will not be reporting again until September. I’m hoping that we can offer some good news on summer activity…aside from our own adventures! Stay tuned!
Below is a snapshot using data compiled from the Florida Association of Realtors showing May’s existing property market activity over $1,000,000 compared to prior year:
And now for my Sarasota Real Estate Market statistical report for May 2025:
Sales
- Total market dollar volume in May was $680.5 million which increased by $39 million from a year ago.
- The number of properties sold was 1,130, 143 less 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 decreased 5.7% from last year, and condo sales were 19.9% below last year.
- U.S. single-family sales were virtually the same as May 2024 and condos were down 10%.
- Of the closed sales in May there were 135 sold for over $1,000,000. In 2024 the monthly average was 124, during 2023 the average was 126 sales, and in 2022 the average was 111.
- Florida homes sold for more than $1 million were 13.1% lower than May 2024 and condos closed at over $1 million fell 26.3%.
- In May 1,027 listings went to a pending contract, an increase of 190 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 fell 1% and condominiums declined 9.8% compared to last year.
- U.S. pending sales in May were 1.1% ahead of a year ago.
Prices
- Single-family homes were sold at a median price of $465,000. The average monthly median price for 2024 was $505,500, in 2023 was $510,000 and in 2022 it was $493,0000.
- In May, Florida median price for single-family homes was $415,000, a 2.7% decrease from last year.
- The national median price for existing homes grew 1.3% to $427,800.
- The condominium median sale price was $321,000 in Sarasota. The average monthly median price for condominiums sold in 2024 was 382,00, in 2023 was $387,400 and in 2022 $383,000.
- The median price for a Florida condominium in May was $310,000, a 6.1% decrease from May 2024.
- U.S. median condominium price grew 1% to $371,300.
- Sarasota houses sold on average for $651,000 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 $489,000 last month. The annual monthly average was $729,000 in 2024, $622,500 in 2023 and in 2022 $563,000.
Inventory
- Currently there are 6,621 properties for sale in Sarasota. At the beginning of this year there were 5,391 listings for sale, 4,426 in 2024 and 2,431 in 2023.
- The Sarasota market had 1,264 new listings in May. The market averaged 1,391 new listings in 2024, 1,318 in 2023 and 904 in 2022.
- Current inventory results in 6.6 months of single-family homes for sale in Sarasota and 9.2 months’ supply of condominiums.
- Florida currently has 5.6 months of single-family inventory and 10.3 months’ supply of condominiums.
- Inventory of Florida properties selling for over $1 million have increased more than 20% over last year.
- U.S. inventory of existing single-family homes has grown 19.6% and condo inventory increased 24.2%.
- Florida currently has 5.6 months of single-family inventory and 10.3 months’ supply of condominiums.
