Sarasota-Manatee Home Prices Drop Sharply: Market Faces New Challenges

Sarasota County, USA - The Sarasota-Bradenton real estate market is currently grappling with a noticeable downturn, as the latest reports indicate a continuous dip in median sale prices and overall sales activity. According to the Realtor Association of Sarasota and Manatee, the numbers paint a clear picture of a market in transition, with rising inventory and fading buyer enthusiasm.

In May 2025, the median sale price for single-family homes in Sarasota County plummeted by 7.3%, settling at $465,000, down from $530,000 a year ago. Similarly, Manatee County saw a drop of 8.9%, with prices falling from $525,000 to $478,195. Such declines signal that the market’s previous momentum may be faltering.

Sales Activity and Buyer Confidence

Further highlighting this trend, median sale prices for townhomes and condos have also taken a hit, with Sarasota reporting a 12.8% decline from $368,000 to $321,020, while Manatee faced a 13.4% drop, going from $361,495 to $313,000. Sales figures tell a different story: single-family home sales in Sarasota fell by 7.3% year-over-year, whereas Manatee County experienced a smaller decline of 1.9%. In a surprising twist, townhome sales in Manatee County actually saw a slight growth of 0.4%, contrasting with Sarasota’s sharp drop of 19.1%.

The slowing activity can be traced back to a combination of waning consumer confidence and persistently high interest rates, leaving potential buyers hesitant. Although nationally, home prices have edged up by 0.7% to a median of $440,913, overall home sales have decreased by 4.9%. This national context mirrors the challenges faced locally.

Inventory Dynamics

Interestingly, the supply dynamics in the Sarasota-Bradenton area are noteworthy. Sarasota County currently has a six-and-a-half-month supply of single-family homes, a massive 32% increase compared to last year. The townhome and condo market is similarly stocked, with a 9.2-month supply—a hefty 46% jump. Meanwhile, Manatee County reports a 5.2-month supply of single-family homes and a 7.9-month supply for townhomes and condos, marking increases of 26.8% and 25.4%, respectively. This increase in inventory suggests that potential sellers may be entering the market in search of buyers, but the slowdown in consumer activity complicates the picture.

In terms of time on the market, Sarasota County saw the median time to contract for single-family homes elongate by 18.6% to 51 days, while it rose by 10.7% to 93 days for the time to sale. Manatee County mirrored this trend with a 15.6% increase to 52 days for median time to contract and a 3.2% rise to 98 days for the median time to sale. Townhomes and condos in Sarasota show somewhat varied trends, with a 3.3% decrease in time to contract to 59 days, yet a 1.1% increase in time to sale to 102 days. Manatee reflects a similar pattern, where the median time to contract increased by 7.1% to 60 days, and the time to sale went up by 4.2% to 99 days.

A Look Ahead

This changing market landscape indicates a shift towards a more buyer-friendly atmosphere. Many real estate experts are suggesting that we could be nearing a period of stabilization after the frenetic pace experienced during the pandemic. It’s a time where buyers may finally feel they have a good hand in negotiations, especially with the increased time on the market providing more options to choose from.

The direction of the Sarasota-Bradenton real estate market remains to be seen, but for now, a cautious optimism pervades the air as both buyers and sellers navigate this evolving scene. For those considering stepping into this market, it might just be the right moment to strike a deal amidst the ebbing and flowing tides of real estate.