The regional real estate markets across various areas are showing distinct trends as September 2024 winds down. Sarasota and Manatee counties are experiencing significant shifts reflective of broader economic changes, similar to those seen nationwide.
According to the latest data from the Realtor Association of Sarasota and Manatee (RASM), the real estate market has felt the impact of recent severe weather and seasonal shifts. Both counties reported declines across different property types, with sales volume and prices dipping noticeably. These trends are not solely due to local factors; the aftermath of Hurricane Debby, which caused extensive inland flooding, has played a role. September is typically slow for real estate, as many seasonal residents delay their return until the weather cools.
For Sarasota County, the sale of single-family homes dropped sharply by 19.6% compared to September 2023, totaling 513 homes sold. On the other hand, the median price for these homes saw a slight increase of 3.2%, reaching $490,000. This price, though up from last month, reflects almost 1% decrease compared to the same month last year. Meanwhile, the number of active listings rose sharply, increasing by over 28% compared to the previous year, which indicates ample choices for buyers amid declining sales.
Manatee County mirrored these trends, with 532 single-family home sales, marking a 14.2% decrease from the previous year. Here, the median sale price fell significantly to $470,000, representing nearly 7% lower than last year, where it was close to $504,000. This decrease signals even more price sensitivity among buyers.
The condo and townhouse markets within both counties also reflected these cooling trends. Sarasota County saw condo sales plummet by 21.2%, with the median price slightly fluctuated to $380,000—up from August’s median of $345,000 but down 4% from the previous year. Conversely, Manatee County faced even steeper declines, showing condo sales decreasing by 25.5%. Here, median prices fell to $319,990—an 8.6% decline year over year.
A significant contributor to the slowdown is the extended timeframe properties are spending on the market. The rates have drastically increased, with Sarasota's single-family homes taking about 48 days to contract—an increase of 77.8% from last year. Manatee County showed similar patterns, with sales taking about 47 days, climbing 62.1% since last year. The condo market echoed this sentiment, with typical sale durations recorded at 57 days for Sarasota and 73 days for Manatee County.
Market dynamics are also changing due to recent legislative changes affecting the condo market. New laws, imposed following the tragic collapse of the Champlain Towers, require stringent inspections for buildings aged 30 years and older. These inspections have raised operational costs, leading condo owners to look for selling opportunities to avoid substantial fee increases for maintaining their properties—another factor contributing to increased supply.
Meanwhile, the region is bracing to see how hurricanes Helene and Milton, which impacted the area toward the end of September and early October, will affect housing trends. Real estate professionals remain cautious as the full effects of these weather events will take time to assess.
Fondren Watts, an agent with Coldwell Banker, observed increased wariness from buyers, especially investors who are also keeping tabs on the upcoming presidential election. “Even before the storms hit, there was trepidation as we approached the election,” she explained, noting this is consistent with historical trends where buyers become more conservative leading up to major political events.
Watts also remarked on the importance of buyers taking their time before making decisions, particularly amid fluctuated interest rates. This reflects a market correction where the urgency of the pandemic era has softened. Many potential buyers are now prioritizing thorough inspections, ensuring the properties align with their needs prior to investments—a notable shift from just jumping on opportunities during the frenzy of the past couple of years.
Despite the challenges, there’s some optimism on the horizon. The increase in inventory may indicate the market is moving toward balance, gradually shifting away from the previously intense seller’s market. Also, builders are showing greater flexibility, with negotiations becoming commonplace. “It’s encouraging for buyers,” Watts mentioned, highlighting how builders are willing to discuss pricing and offer incentives for new constructions, which had not been the norm pre-COVID.
While the picture may seem challenging, it’s important to recognize these fluctuations as typical post-pandemic adjustments. The changes reflect both local weather impacts and wider economic sentiment, offering buyers more options and room for negotiation as they navigate their real estate journeys.
Across the state, Virginia's housing market presents contrasting data. Pending home sales surged almost 14% from September 2023, as reported by Virginia Realtors. This uptick signals potential buyer confidence returning to the market, illustrating varied conditions across regions.
The data alignment and divergences present suggest real estate markets are complex ecosystems influenced by numerous factors, from legislative shifts and weather changes to political climates. Understanding these dynamics will offer clearer insights for potential buyers and sellers as they chart their paths moving forward.
Building on the adaptability seen throughout these markets, stakeholders can anticipate continued evolution as seasonal cycles reset and economic indicators fluctuate. The regional real estate landscapes are fertile ground for exploration, negotiations, and opportunities for those willing to engage thoughtfully.
