Sarasota Housing Market Update: How 2025 Unfolded and What to Expect in 2026

Keith C
2 days ago
3 min read

The Sarasota real estate market in 2025 didn’t make dramatic headlines — and that’s exactly the point.

After years of extreme volatility, the market shifted into a normalization phase. But that shift didn’t hit every segment the same way. Single-family homes and condos followed very different paths, and understanding that distinction is critical heading into 2026.

Here’s what actually happened in 2025 and what it means if you’re buying, selling, or investing in the Sarasota area.

The Big Picture: A Market That Rebalanced, Not Broke

Across the North Port–Sarasota–Bradenton MSA, 2025 was defined by:

More inventory
Longer timelines
Softer pricing
More selective buyers

This wasn’t a crash. It was a recalibration, and the data confirms it.

Single-Family Homes: Stability With Modest Adjustment

Single-family homes proved to be the most resilient segment of the Sarasota housing market in 2025.

2025 Single-Family Snapshot

Closed sales: 15,704 (+4.9% YoY)
Median sale price: $475,000 (-5.0% YoY)
Months supply of inventory: 4.5 months
Median time to contract: 57 days
Cash sales: 35.7%

Prices eased slightly, but sales activity actually increased, a strong signal that buyer demand remained intact even as affordability tightened.

What this tells us: Buyers didn’t leave the market. They just became more disciplined.

Well-priced homes still sold. Overpriced homes sat.

Condos & Townhouses: Where the Market Absorbed the Most Pressure

Condos experienced a very different year.

2025 Condo & Townhouse Snapshot

Closed sales: 6,014 (-0.4% YoY)
Median sale price: $320,000 (-11.1% YoY)
Average sale price: $438,992 (-23.0% YoY)
Months supply of inventory: 7.4 months
Median time to contract: 72 days
Cash sales: 58.8%

This segment moved decisively into buyer-market territory in 2025.

Why Condos Felt It More

Several forces converged:

Rising insurance costs
HOA fee increases
Financing scrutiny
Investor pullback
Higher inventory concentration in certain buildings

Condos didn’t collapse, but they re-priced faster to meet market reality.

Inventory Tells the Real Story

Inventory levels explain much of the divergence:

Segment	Months Supply (2025)	Market Type
Single-Family Homes	4.5 months	Near-balanced
Condos & Townhomes	7.4 months	Buyer-favored

Single-family homes never crossed into oversupply. Condos clearly did.

That gap matters — and it will continue to shape pricing behavior in 2026.

Time on Market: Slower, But Healthier

Across both segments, days on market increased:

Single-family homes: 102 days to sale
Condos: 113 days to sale

This slower pace reflects:

Fewer emotional decisions
More inspection and financing contingencies
Reduced urgency from cash-heavy investors

From a long-term market health standpoint, this is constructive..not concerning.

What This Means Heading Into 2026

For Buyers

Single-family: Less frenzy, better leverage, still competitive for well-located homes
Condos: Strong negotiating power, especially in higher-inventory buildings

For Sellers

Pricing strategy matters more than ever
Condition, location, and HOA health now materially affect outcomes
The “test the market” approach is costly in 2026 conditions

For the Market Overall

No signs of systemic distress
Distressed sales remain minimal
Sarasota continues transitioning toward a more sustainable, normal market cycle

2026 Outlook: Strategy Beats Timing

The most important takeaway from 2025 isn’t price movement — it’s market behavior.

2026 will reward:

Realistic pricing
Property-level strategy
Neighborhood-specific analysis
Understanding the difference between condos and single-family homes

The era of blanket assumptions is over. Sarasota is now a micro-market game.

Bottom Line

2025 was a reset year — not a retreat.

Single-family homes stabilized. Condos adjusted more aggressively. Buyers gained leverage. Sellers regained accountability.

And heading into 2026, success will come down to clarity, not confidence.

If you want a neighborhood-level breakdown, a condo-building-specific analysis, or a strategy conversation tailored to your situation, I’m always happy to help.