Market Shifts and Buyer Leverage in the Sarasota and Manatee Housing Market

The housing market in January 2024 mirrors the trends observed in the latter half of 2023, as per data released by Florida REALTORS® and analyzed by the REALTOR® Association of Sarasota and Manatee (RASM). January saw a continued uptick in the months supply of inventory and a rise in median time to contract, indicating a gradual shift towards a more balanced market, favorable to buyers.

"As we witness sustained growth in inventory levels, it's important to recognize that we are still below the levels represented in Q1 of 2019," said Tony Barrett, 2024 RASM President and Broker/Owner at Barrett Realty. "The transition towards a more normalized, higher inventory market presents advantages for buyers, offering them increased leverage in negotiating prices, repairs, and closing cost credits."

Both Sarasota and Manatee counties experienced an uptick in median sales prices. In Sarasota County, the median sale price for single-family homes increased by 16.3 percent to $535,000, and in Manatee County, median prices increased by 3.8 percent to $525,000. The median sale price for Sarasota County condos increased by less than one percent to $420,000 and increased by 3.8 percent to $357,990 for Manatee County condos.

Across the two-county region, closed sales increased year-over-year by 14.9 for single-family homes and increased by 1.3 percent for condos. Single-family homes in Sarasota County witnessed an 18.5 percent increase in closed sales, while condo sales decreased by 4.6 percent. Meanwhile, closed sales in Manatee County saw a respective increase of 10.9 percent and 8.8 percent for single-family homes and condos.

The total number of active listings on the market almost doubled when compared to the previous year, providing buyers with a wider array of options. In Sarasota County, active inventory for single-family homes increased by 75.4 percent to 3,135 listings and the condo supply increased by 124 percent to 1,985 listings. Active listings for single-family homes in Manatee County increased by 33.3 percent to 2,420 listings, and increased by 79.4 percent for condos, with 1,340 listings.

Months supply of inventory (MSI) continued its upward trajectory across both counties. The MSI for single-family homes was at 4.9 months in Sarasota County and 3.9 in Manatee County, a year-over-year increase of 75 percent and 21.9 percent, respectively. The condo market reached new records for both Manatee and Sarasota County. There was a 6.2-month supply of Sarasota condos, which was last reported in April of 2019 and there was a 5.6-month supply of Manatee condos, which has not been reported since February of 2013. This is a year-over-year increase of 129.6 percent and 75 percent, respectively.

The median time to contract for Sarasota County averaged 38 days, marking a 58.3 percent increase from the previous year. In Manatee County, houses and condos remained on the market for approximately 41 days before going under contract, reflecting a 41.3 percent increase from January 2023.

Looking ahead, Tony Barrett commented, "In the coming months, potential shifts in interest rates and insurance costs could reshape the market dynamics. Should interest rates decrease and insurance costs follow suit, we may anticipate a resurgence of buyers entering the market once again."

Monthly reports are provided by Florida Realtors® with data compiled from Stellar MLS. For comprehensive statistics dating back to 2015, visit www.MyRASM.com/statistics.