The Sarasota market has entered a new phase. The pace of inventory growth is slowing, indicating a move toward a stabilizing market. Although we are seeing a softening in closed sales and median prices, the elevated inventory levels are providing buyers with more options and negotiating power. The Sarasota and Lakewood Ranch real estate market has transitioned from the frenzied seller’s market of previous years to a more balanced setting, where patience and strategic decision-making are rewarded. The days of rapid sales and above-asking price offers are largely over; however, properly priced properties still move.
According to the latest data from the Realtor Association of Sarasota and Manatee, our local market experienced price declines compared to the previous year. Sarasota’s median single-family home price dropped to $465,000 in May, down 12.3% year-over-year. Condo and townhome prices have seen a steeper decline. However, long-term owners continue to enjoy positive equity positions compared to pre-pandemic values.
Housing supply is expected to remain elevated, with Sarasota County holding around 6 to 7 months of inventory – up over 34% year-over-year. This increased supply provides buyers with more choices and increased leverage in negotiations, while sellers face more competition and need to think about pricing realistically if they want to attract buyers. Overall sales in Sarasota rose slightly – up approximately half a percent year-over-year. The luxury segment ($2M+) remained resilient, with steady activity and strong demand for high-end homes.
There is continuing demand for new construction homes, but supply chain and cost challenges may keep new inventory from entering the market. Homes are spending more time on the market, with the median days to contract rising to around 51 days for single-family homes and 59 days for condos, and total days to sale 90-100 days. This slower pace allows buyers to be more selective and negotiate for credits or repairs. While demand has cooled, it remains healthy, especially among cash buyers. Many buyers are relocating from higher-priced metros, attracted by Sarasota’s lifestyle and Florida’s tax advantages.
Trends for Lakewood Ranch
Lakewood Ranch remains more resilient than the broader region, with homes going under contract faster than anywhere else in Sarasota or Manatee counties. The median home prices have declined year-over-year and are expected to remain soft through late 2025. As of May-June 2025, the median listing price was $634,400 and median sale price was $625,000, a decrease year-over-year. The most active price range is $300,00-$500,00, while luxury sales above $1 million have remained steady. The median time to contract is 52 days for single-family homes and 60 days for condos. Condo and townhome prices also fell, with a decrease of 13.4% year-over-year.
Inventory remains elevated but the pace of growth is slowing, suggesting stabilization is ahead. This area has roughly 5.2 months of inventory which is an increase from previous years. New construction continues to drive demand, with builders offering incentives to attract buyers. The area’s appeal is bolstered by lifestyle amenities, new restaurants, retail, and ongoing southeast expansion, with 2,200 acres rezoned for future growth.
Key takeaways for late 2025
The market is expected to remain balanced, with no dramatic swings anticipated. Prices may experience further mild declines or flattening, particularly if inventory remains high and demand remains steady. Sellers should price their homes competitively, and be patient, as longer market times are the new norm. Buyers can expect continued negotiation leverage, more choices, and less urgency to make quick decisions.
Both Sarasota and Lakewood Ranch are trending towards a balanced market, with Lakewood Ranch maintaining an edge in new home sales and active adult demand. Strategic, data-driven approaches will be essential for success in this evolving real estate market.
Sarasota and Lakewood Ranch is one of the most popular and unique luxury real estate markets on the Southwest Florida coast. This area offers a high-quality life in a picturesque natural Florida setting. With my extensive experience of selling in Sarasota and Lakewood Ranch, please allow me to answer questions you may have about the exclusive and exciting communities and real estate. If you are interested in buying or selling a home in the near future, please call me today on 941.266.0529, or search for properties in your desired neighborhood from my homepage.
