SARASOTA REAL ESTATE MARKET JUST RESET. HERE’S WHERE THE VALUE IS

SARASOTA REAL ESTATE MARKET JUST RESET. HERE’S WHERE THE VALUE IS

2025 is officially in the books, and what happened in our local housing market may surprise you. Prices came down, demand stayed strong, and that combination is creating a very interesting opportunity heading into 2026. Not all price drops are bad news. In fact, some of the best buying opportunities we’ve seen in years are showing up right now, and they’re in neighborhoods you might not expect.

One thing I always remind my clients is that real estate is hyperlocal. National headlines don’t sell homes, neighborhoods do. When we look at our local numbers from 2025, something important stands out. The average sale price in Sarasota and Manatee County dropped by about 10 percent, which is a meaningful shift for affordability.

What’s even more interesting is that the number of homes sold actually increased. Transactions were up roughly 8 percent in 2025, which tells us buyers didn’t disappear, they just became more selective. That selectiveness has affected neighborhoods very differently, creating a tale of two markets. Some areas are holding value or even stabilizing, while others experienced meaningful corrections, and that’s where opportunity lies.

Instead of focusing only on what happened in 2025, it’s important to look ahead. 2026 may be one of the best windows we’ve seen in years to buy in strong locations at better price points.

Let’s start with the waterfront, including Longboat Key, Anna Maria Island, and Siesta Key. Following the hurricanes of 2024, these coastal markets experienced price corrections of over 20 percent across both single-family homes and condos. For buyers who have always dreamed of beachfront living, this may be one of the strongest opportunities in decades.

That said, buyers must look beyond purchase price. Insurance costs, flood insurance, and condo and HOA fees have increased, even as values softened. One advantage of island properties, however, is that they are not subject to CDD fees, which are common in newer master-planned communities.

Another standout area is Lakewood Ranch, where average residential prices declined by approximately 19 percent. It’s important to understand that Lakewood Ranch is made up of multiple submarkets. Nearly one-third of homes are located in Bradenton, including newer communities like Esplanade and Star Farms, while Waterside and parts of Lakewood Ranch in Sarasota represent the newest development phases.

What’s especially notable is that the strongest buying opportunities are in the established core communities, including Greenbrook, Lakewood Ranch Golf and Country Club, Riverwalk, and Edgewater. These neighborhoods are centrally located, close to Main Street, University Town Center, Waterside, downtown Sarasota, and the beaches, making them exceptional values heading into 2026.

Another area buyers should pay attention to is Palmer Ranch. After years of being one of the hottest locations on the Gulf Coast, the area saw prices decline about 10 percent in 2025 as buyers shifted toward new construction farther east. What hasn’t changed is the appeal of the location. Palmer Ranch offers mature trees, established neighborhoods, and unbeatable convenience, including less than 15 minutes to Siesta Key Beach and easy access to downtown Sarasota and UTC. 2026 may be one of the best buying opportunities Palmer Ranch has seen in years.

One final neighborhood worth highlighting is Golf Gate. This classic Sarasota community, developed in the late 1970s and early 1980s, has seen prices reset by about 14 percent over the past year. Golf Gate stands out for its larger lots, ranch-style homes, pools, and thoughtful updates, along with its own shopping and dining district. It’s a rare combination of charm and convenience and a neighborhood buyers should absolutely watch in 2026.

While many areas present strong value opportunities, not every part of Sarasota saw price declines. Downtown Sarasota and West of Trail neighborhoods actually experienced price growth in 2025, supported by continued demand for walkability, bayfront living, and luxury condominiums.

This brings us back to the key takeaway: real estate isn’t just local, it’s hyperlocal. Values can change dramatically from one neighborhood to the next, which is why tracking data at the neighborhood level matters.

If you’d like to talk through specific neighborhoods or opportunities heading into 2026, feel free to reach out. My team and I truly enjoy helping buyers, sellers, and investors throughout Sarasota and the Florida Gulf Coast. And as always, when it comes to real estate, work with a local expert.