5 Risks of Buying Now in Barrier Islands

Should You Buy or Wait in Sarasota?

The Complete Picture

In Sarasota and Manatee Counties, 2026 brings a more balanced housing market. With a 4.7 months’ inventory for single-family homes and 8.1 months for condos, buyers encounter more choices and less urgency. Despite this, hotspots like Lakewood Ranch and downtown Sarasota maintain strong demand. These conditions favor both buyers seeking greater selection and sellers aiming to leverage steady demand. Gradual price stabilization and potential mortgage rate relief are significant factors. Buyers can explore options like coastal properties or neighborhoods with boating access. Sellers can highlight local perks like proximity to beaches and quality schools. This evolving market presents opportunities and considerations for both parties.

We continue to work with Eric and the team at TEAM RENICK. They are the most responsive realtor ever. This is our third transaction with them and each one has been awesome. Beyond the deal, they serve their customers in many ways…. providing advice, recommendations and new ways to look at the real estate market

– oriolerick1, Zillow Review

Key Insights

Sarasota‘s market is shifting towards balance, with single-family home sales rising by 9.3% in 2025. However, median prices dipped by 6% to $474,700. Manatee mirrors this trend with modest gains. Condo sales tell a different story, with a 4.3% decline and a 15.3% drop in median prices. Active listings have increased, reducing the frenzy and offering more choices. Areas with a strong supply, like 12 months’ condo supply downtown, provide strategic advantages for buyers.

In terms of financing, mortgage rates are expected to ease into the high 5s by late 2026. This projection is promising for buyers, suggesting improved affordability. However, Sarasota‘s desirable areas still see firm demand, potentially limiting significant price drops. Long-term investment remains viable, with steady appreciation expected over frenzied past markets. Buyers have more negotiation power, while sellers can capitalize on cash buyers prevalent in the market.

Market Reality

The Sarasota-Manatee market has a rising inventory, with properties often exceeding 100 days on the market. This slowdown allows for more strategic decisions. Prices are generally stabilizing, impacting both buyers and sellers positively. Local regulations, such as barrier-island insurance and flood zones AE/VE, play significant roles in property decisions. Lending conditions may improve as mortgage rates decline, potentially attracting more buyers to the market by year’s end.

Action Steps

1. Obtain pre-approval for a mortgage to be ready when the right property becomes available.
2. Research areas with rising inventory, like downtown Sarasota, to leverage negotiation opportunities.
3. Evaluate local regulations, especially regarding flood insurance, to assess risk and costs.
4. Monitor mortgage rate trends to capitalize on potential dips in rates.
5. Update homes with energy-efficient features and outdoor spaces to align with Sarasota‘s market preferences.

Frequently Asked Questions

1. What are the current trends for Sarasota‘s housing market? Sarasota‘s market is showing increased inventory and stabilizing prices. Single-family home sales rose 9.3% in 2025, while median prices dipped. Condo markets signal a buyer‘s market, especially downtown with an 8.1-month supply.
2. How are mortgage rates expected to change in 2026? Mortgage rates are projected to decline to the high 5s by late 2026. This could boost buying interest, providing opportunities for those who act early.
3. What should buyers consider before purchasing in Sarasota? Buyers should consider the area’s desirability, local flood zones, and current market trends. Areas like Lakewood Ranch remain in demand, and customers should prepare for possible competition.
4. Are there specific areas where inventory is particularly high? Downtown Sarasota has a 12-month condo supply, offering strategic opportunities for buyers. This may provide better negotiation leverage and choice.
5. What risks should sellers consider in the current market? Sellers face potential longer days on the market due to rising inventory. Pricing appropriately and leveraging Sarasota‘s lifestyle appeal can help mitigate these risks.

Closing

Sarasota‘s 2026 housing market offers balanced opportunities for both buyers and sellers. With rising inventory and easing mortgage rates, now is an excellent time to explore your options. Whether buying or selling, understanding local trends and market dynamics is crucial. Ready to talk strategy? Call Michael Renick at 941.400.8735.

We started to talk to a couple who lived in one property, and they told us to call their realtor. One of the first things he said was that he wanted to get to know us, our desires, and our likes and dislikes. We ended up looking at three-bedroom properties instead of two, and the one we chose was beautifully renovated and move-in ready. I appreciated that he was patient and let me work through my decisions without pressure. It was a very professional experience, and he was not only technically competent but also emotionally supportive. He took the time to really get to know us, which is not something you always get from realtors.

– Verified Customer, Customer Review

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