T
he real estate market in Sarasota and Manatee counties has slowed down from this time last year. Key benchmarks for early 2025 show a continuation of trends that began in 2024: median prices are down, inventory supplies are higher, and the time it takes to sign a sales contract is roughly equal to 2024.

    Experts say the region's torrid real estate market of two or three years ago is over. Gone are median prices above $500,000 and properties selling in days or hours for more than asking price. Instead, the area has evolved into a balance between buyers and sellers, says Debi Reynolds, president of the REALTORS Association of Sarasota and Manatee.

    The reasons behind this shift are unclear, but several factors may be contributing: mortgage interest rates, Florida's homeowners insurance rates, new rules for condominium associations, and storm fatigue. Tyler Shanahan, a Lakewood Ranch Realtor, notes that portions of the inland luxury market are flourishing, particularly in the $2.5 million to $3 million segment.

    Buyers at this price point are often drawn from other states or those who have previously lived on the water but are now looking for alternative options. The corridor along Interstate 75 offers a range of choices, including new developments and existing homes that were once overlooked by buyers focused on waterfront properties.

    Despite the shift towards balance in the market, beachfront condos continue to sell for asking price, and ultra-luxurious properties remain highly sought after. However, some residents are selling their beachside homes as is or rebuilding inland, while others are moving further away from the coast.

    County leaders are concerned that lower property values could affect revenue in coming years, but experts emphasize that this is not a decrease in property values, rather a slowing of increases.