The real estate market in Sarasota & Manatee counties is undergoing a notable adjustment, reflecting a shift from the rapid growth seen in recent years. According to the latest Zillow data Sarasota saw a 7% year over year drop, with Manatee close behind with 5%. By contrast, the national average increased by 4.5%
This reversal marks a sharp turn from the pandemic-era boom, when home prices surged due to increased demand from out-of-state buyers. After years of double-digit growth, the market is now correcting - and doing so quickly.
The downturn appears to be driven by a combination of affordability fatigue, economic uncertainty, and shifting buyer behavior. Much of the Suncoast's demand stems from retirees, seasonal residents, and investors - groups that are more likely to delay purchases in times of financial uncertainty.
Recent local data shows increasing inventory, fewer sales, and downward pressure on home prices. Buyers are hesitating while many sellers are still pricing based on last year's highs.This disconnect can stall the market and result in longer days on market or forced price reductions.
Why does this matter for homeowner's? In a shifting market, pricing a property correctly from the start - based on current comps, not past peaks - is more important than ever. Overpricing in today's climate can lead to extended time on the market, multiple price drops, and ultimately a lower final sale price.
So what's the timeline for recovery? Much will depend on interest rates, consumer confidence, and broader economic signals. For now sellers need to remain realistic, informed, and flexible. Correct pricing, strong marketing, and understanding local trends are key to navigating this transitional market.
Matt & Jenny Cannon
Coldwell Banker Sarasota