Graphic courtesy Realtor Associationltor Association of Sarasota and Manatee.

The region’s real estate market cooled in July, with inventories reaching a higher level than seen since before the COVID-19 pandemic. That’s according to the latest statistics from the Realtor Association of Sarasota ana Manatee, which saw the shift as a market correction following a series-long surge in buying interest.

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

Real estate professionals typically consider a six-month inventory a balanced market. In the condo and townhome market, Sarasota County in July had a 5.7-month supply of units, and Manatee had a near identical 5.6-month inventory. The single-family home market still remains a seller’s market, with a 4.8 month inventory in Sarasota County and a 3.9-month supply in Manatee. But by comparison, the county’s combined home inventory in July 2023 was just 3 months, and the condo inventory was just 3.3 months. A year before that, the July 2022 condo inventory sat at 1.7 months and the home inventory was 2.2 months.

The greater supply has brought with it a significant drop in prices, along with a smaller number of buyers paying cash for homes. The median price for single-family homes sold in July was $470,000 in Sarasota County and $499,000 in Manatee. That represented a 3.1% year-over-year decline in Manatee, and a 12.1% drop in Sarasota. Both counties saw roughly a 6% drop in the median price of condos solid in July, to $365,000 in Sarasota and to $329,000 in Manatee.

Sellers are now settling for a lower percentage price compared to their list price, but are still getting more than 92% of their asking price regardless of the county or the real estate category. In Manatee County, the median percentage of list price on closed sales remained about 96% of what sellers originally listed.

While that may disappoint those putting the homes on the market now, Barrett said that ultimately pointed to a healthier market than the rush to buy that started in late 2020.

“The drop in median sales prices shows the market is adjusting, making it 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 closed sales on homes compared to July 2023. The counties combined experienced 1,328 close sales in July compared to 1,257 the same month the prior year. The number of transactions was relatively flat in the condo market, with 510 sales closed in the two-county area in July, compared to 515 last year.

Graphic courtesy Realtor Associationltor Association of Sarasota and Manatee.