R
ealtors are optimistic about the local real estate market in 2025, expecting sales to normalize after a dip caused by named storms and election uncertainty in 2024. Lakewood Ranch agent Donna Soda says the market will be "very good" but not fast-paced, with areas like Lakewood Ranch having an advantage due to new construction, solid inventory, and lower hurricane risk.

    Despite slowdowns in summer and fall, overall numbers for 2024 remained strong, according to Laura Cole, senior vice president of Lakewood Ranch. Buyers paused from July until after the election, but sales picked up through the end of the year. Soda agrees that the election pause was followed by a surge in activity on November 6.

    Hurricane fatigue has prompted some barrier island residents to seek new roots inland, with agents reporting an increase in buyers looking for properties away from the shoreline. Stacy Haas, an agent with Michael Saunders & Company, says she's seen many buyers from St. Petersburg and other areas seeking refuge from storm damage.

    Tony Barrett, president of the Realtor Association of Sarasota and Manatee, notes that some residents are leaving barrier islands due to storm concerns, but out-of-state buyers remain drawn to Florida's warm weather. Soda agrees, saying her website lights up during cold snaps in northern states.

    Interest rates have risen significantly, causing potential buyers to wait for a decline. However, Barrett says this is not likely, and the market will continue with steady demand from people moving to Florida. For higher-end buyers, cash transactions are becoming more common, with 40% of homebuyers in Lakewood Ranch paying cash.

    For those who can't afford cash, it's a waiting game, but Soda believes that if interest rates drop, the market could become fast-paced again. The current interest rate situation favors new home construction, which is attractive to buyers due to lower insurance rates and higher construction standards.