FLORIDA HOUSING MARKET 2025 — ARE PRICES STILL FALLING?

FLORIDA HOUSING MARKET 2025 — ARE PRICES STILL FALLING?

Is the Sarasota housing market about to shift again? Will prices keep dipping as we move into 2026, or are we finally seeing signs of stability?

Let’s take a look at what’s unfolded in 2025, what to expect in 2026, and what both buyers and sellers should be preparing for in the months ahead.

A Quick Look Back at 2025

The year started off slower than many hoped — and for good reason. The lingering effects of hurricanes in 2024, combined with an election year, created uncertainty that caused hesitation in the market.

Home prices have adjusted as a result. The average sale price in 2025 hovers around $570,000, down from $632,000 in 2024. At the same time, inventory surged to levels not seen in over a decade, peaking at more than 13,700 homes on the market this past April.

But here’s some good news — for the first time in nearly two years, inventory is finally beginning to decline. That’s a healthy sign suggesting that supply and demand may start to balance out as we move toward 2026.

Sales activity also picked up during the summer months, another encouraging signal that confidence is returning.

Sellers Are Rethinking Their Strategy

Across Florida, many sellers have hit the pause button, pulling their listings temporarily. They’re waiting for conditions to level out — and that’s smart.

Listing a home today requires more than just being ready to sell. It means being ready, willing, and able — which includes pricing realistically based on the most recent 60–90 days of comparable sales, not last year’s.

Sellers also benefit from studying what didn’t sell. Understanding why some homes lingered on the market (or required major price reductions) helps avoid the same pitfalls.

Key Market Numbers to Watch

The average days on market currently sit at 94 days — which actually indicates a more balanced market. Some homes still sell in under a week, while others take longer depending on price and condition.

On average, sellers are accepting 4–5% below list price, and the overall sale-to-original-list ratio is around 91%, reflecting the 10–20% price correction seen regionally.

Advice for Sellers Heading Into 2026

Buyers today are more selective than ever. They’re viewing 20 to 30 homes before making an offer, comparing resale properties to new construction. Homes that shine — those with updated kitchens, newer roofs, and modern mechanical systems — stand out.

If your home needs work, buyers will notice. With insurance costs higher for older systems, updated homes tend to sell faster and for more money.

Pricing too high at the start can backfire. In a cooling market, starting high means you’ll end up chasing prices downward. Pricing accurately from day one is the key to selling faster and attracting stronger offers.

What Buyers Should Expect in 2026

For buyers, the landscape looks promising. Interest rates are expected to dip slightly next year — maybe not to historic lows, but even a half-percent decrease can make a real difference in affordability.

You have more inventory, more negotiation power, and more time to find the right fit. Some sellers are even open to going beyond the average 4–5% discount.

That said, as inventory continues to shrink, demand could strengthen again — meaning prices may begin to stabilize or tick upward in 2026. When you find a home that feels right, be ready to act quickly, because others will be eyeing it too.

New Construction’s Growing Influence

New builds are once again heating up. Builders who offered big incentives over the summer are now scaling back as demand rebounds.

For instance, Del Webb Catalina in Lakewood Ranch recently raised prices by 3% due to strong demand, while Seaflower in Bradenton has also seen upward movement. This renewed builder confidence signals a market trending toward recovery and balance.

Final Thoughts

While 2025 brought its share of price corrections and higher inventory, Sarasota and Manatee counties are heading toward a more stable, healthy market.

Sellers should focus on realistic pricing and presentation, while buyers should take advantage of the current flexibility before the next upward swing.

If you’re considering buying or selling, having a local expert on your side makes all the difference.

I’m Lisa McBride with Sarasota Neighborhood Experts, and my team and I would love to help you navigate your next move in the Sarasota and Manatee real estate markets.