Anna Maria Island after Hurricane Milton made landfall.
Sarasota and Manatee County real estate markets are feeling the effects of continued cooling, with September statistics showing declines in both sales volume and prices across residential property types. .
The economic downturn may be partially related to the aftermath of Hurricane Debbie, which caused widespread inland flooding and disrupted the market, according to the latest data from the Sarasota-Manatee Association of Realtors (RASM). On top of that, September is typically one of the slowest months in the industry as part-time residents and tourists wait for cooler weather to arrive before returning to the area.
Sales are declining across the board, with single-family homes and condominiums showing double-digit declines. In Sarasota County, single-family home sales decreased by 19.6% compared to September 2023, with 513 homes sold. The median price of these homes increased slightly compared to last month to $490,000, or 3.2 percent, but compared to the same month last year, the median price decreased by nearly 1 percent. Meanwhile, inventory is surging, with the number of active listings up more than 28% compared to this time last year.
Manatee County numbers tell a similar story, with 532 single-family home sales in September, down 14.2% from a year ago. Prices in the county have fallen to their lowest level in 2024, with the median price at $470,000, down nearly 7% from last September, when it was just under $504,000.
The market for condos and townhouses is also depressed. Sarasota County saw a 21.2% decline in condo sales, while Manatee County saw an even steeper decline of 25.5% year over year.
Still, median sales prices rose slightly in Sarasota’s condo market, reaching $380,000, up from August’s median sales price of $345,000, but 4% compared to last September. It fell. In Manatee County, condo prices fell to $319,990, an 8.6% decrease compared to September 2023.
In addition to the cooldown, properties will stay on the market much longer. In Sarasota, the median time it takes for a single-family home to go under contract is 48 days, an increase of 77.8% from a year ago. In Manatee County, the median duration is now 47 days, an increase of 62.1%. It’s a similar story in the condo market, where homes take longer to sell: 57 days in Sarasota and 73 days in Manatee. There is now a six-month supply of condos and townhomes in Manatee County, an increase of 82% compared to last September.
Much of the condominium market has also been affected by new state laws, resulting in higher fees for owners. These fees are intended to build up contingency funds and complete repairs ahead of new legislation after the deadly collapse of Surfside’s Champlain Tower. If a building has at least three habitable floors, a “milestone inspection” is required when the building is 30 years old. Thereafter, milestone inspections are required every 10 years. As a result, there are many cases where condominium owners’ desire to sell increases.
It is still too early to assess the full impact of Hurricanes Helen and Milton, which hit the region in late September and early October. The long-term effects of the storm on buyer and seller behavior may not be fully clear until the October and November reports are released.
Fondren Watts, a local real estate agent with Coldwell Banker, said people, including investors, are also waiting for the results of the presidential election.
“Even before the storm, buyers were taking a step back because the election was coming up,” she said. “Historically, this is nothing new. People tend to be more cautious in the month leading up to an election.”
As for Hurricanes Debbie, Helen and Milton, “It’s too early to tell what impact they will have on tourism, the economy and the housing market. Everything is in flux right now, especially as we scramble to recover. ” Watts continued.
He notes that buyers are taking more time to make decisions, as evidenced by increased time to sale, especially given rising interest rates and an increasingly cautious market. .
“There’s something to be said for buyers who have extra time to get inspected,” Watts says. “During the pandemic, so many people skipped that step. Now we’re seeing a simmer. Interest rates are part of it, but also making sure the home is a good fit and repairs are completed. It is also important to check.
Despite these challenges, there is some optimism. Increased inventory gives buyers more options, which could signal a fading of the intense seller’s market of the previous year and a shift to a more balanced environment.
Watts also points to another bright spot for buyers: builders’ increased willingness to negotiate. “In new construction, builders are now willing to negotiate not only on inventory homes but also on upcoming homes, which is a big change,” she says. Before COVID-19, construction companies were not willing to negotiate on price. Now they’re offering incentives like $10,000 in closing costs, and in some cases they’re saying, “Make me an offer.” That’s a big change. ”
