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Graphic courtesy of Realtor Association/Realtor Association of Sarasota and Manatee.

The region’s real estate market cooled in July, with inventory reaching higher levels than since before the COVID-19 pandemic, according to the latest statistics from the Realtor Association of Sarasota ana Manatee, which viewed the shift as a market correction following a long-standing surge in buyer interest.

“The market is returning to what it was before the pandemic, and while it may seem like things are cooling down, that’s actually a good thing,” said Tony Barrett, RASM president and broker/owner of Barrett Realty. “It means we’re in a more balanced market, which is good news for both buyers and sellers.”

Real estate professionals typically consider six months of inventory to be a balanced market. In the condo and townhome market, Sarasota County had 5.7 months of unit inventory in July and Manatee had a nearly identical 5.6 months of inventory. The single-family home market continues to be a seller’s market, with 4.8 months of inventory in Sarasota County and 3.9 months of inventory in Manatee. But by comparison, the county’s combined home inventory in July 2023 was just 3 months and condo inventory was just 3.3 months. A year earlier, condo inventory in July 2022 was 1.7 months and house inventory was 2.2 months.

The increased supply has brought a significant drop in prices, along with fewer buyers paying cash for their homes. The median price for single-family homes sold in July was $470,000 in Sarasota County and $499,000 in Manatee, representing a year-over-year decline of 3.1% in Manatee and 12.1% in Sarasota. In both counties, the median price for condos fell about 6% in July, to $365,000 in Sarasota and $329,000 in Manatee.

Sellers are now settling for a percentage lower than their list price, but still get more than 92% of their asking price regardless of county or property category. In Manatee County, the median percentage of list price in closed sales remained at about 96% of the original price quoted by sellers.

While this may disappoint those putting homes on the market now, Barrett said it ultimately indicates a healthier market than the buying rush that began in late 2020.

“The decline in median sales prices shows that the market is adjusting and becoming more affordable for buyers. It’s a sign that we’re moving toward a healthier, more balanced market overall,” Berrett said.

At the same time, the region saw more completed home sales compared to July 2023. The counties as a whole recorded 1,328 completed sales in July, compared to 1,257 in the same month last year. The number of transactions in the condominium market remained relatively stable. In July, 510 sales were completed in the two-county area, compared to 515 last year.

Graphic courtesy of Realtor Association/Realtor Association of Sarasota and Manatee.