Sarasota’s real estate market is shifting as we move into spring. After several years of rapid appreciation, market conditions are evolving, offering both opportunities and challenges for buyers and sellers.
Market stabilization
Sarasota has been one of Florida’s hottest real estate markets, but price growth is slowing. In January, home prices in Sarasota County rose by 1.9%, bringing the median price to around $510. This is a slight decrease of -0.5% from February 2024.
Right now, Sarasota is a Buyers Market.
What does this mean? Prices can get lower and homes stay on the market longer.
Rising inventory and new construction
Inventory is increasing across Sarasota! In February, Florida recorded 168,717 active listings, a 40% increase from the same time last year, while Sarasota shows around 850. New construction is also playing a role in the inventory boost. Builders are offering incentives such as closing cost assistance, mortgage rate buydowns, and even price reductions to attract buyers.
Interest rates and affordability challenges
Mortgage rates remain a key factor influencing buyer behavior. While rates have fluctuated, they are still higher than the record lows seen in previous years. This affects affordability, particularly for first-time and move-up buyers. Some buyers are opting for adjustable-rate mortgages or negotiating with sellers for rate buydowns. Those with cash offers or large down payments continue to have a strong advantage.
Shifts in buyer demographics
Sarasota continues to attract retirees and second-home buyers, but there is also a growing influx of younger professionals and remote workers. Many are drawn by Florida’s tax advantages, quality of life, and Sarasota’s cultural and outdoor lifestyle.
The increased demand from a diverse range of buyers is shaping the types of properties in demand, with a rising interest in modern, low-maintenance homes and condominiums.
Sarasota’s real estate market is evolving, but those who stay informed and work with experienced professionals can navigate these changes successfully. Whether buying or selling, understanding the latest trends will help you make the most of the current market conditions.
