Florida Housing Market Hits Record Highs: Opportunities for Buyers in Gaining Markets

The housing landscape in Florida is undergoing a significant transformation, with an unprecedented number of homes flooding the market for two consecutive months. Specifically, homes in cities like Bradenton and Sarasota are becoming increasingly attractive to potential buyers as prices continue to decline.

Surge in Home Listings

In February, Florida’s housing market witnessed a historic peak, with 168,717 homes listed for sale, according to Realtor.com® data, marking a nearly 40% increase compared to the previous year. This surge in inventory coincided with trends observed since May 2022, where the available supply has consistently climbed.

• Orlando: 43.8% year-over-year increase in inventory
• Cape Coral: 42.7% increase
• Miami: 39.2% increase

Hannah Jones, a senior economic research analyst at Realtor.com, commented on this trend, stating that high home prices and elevated mortgage rates have curbed demand, resulting in a substantial accumulation of home listings. The February inventory surpassed January’s record of 157,221 homes by over 100,000 listings.

Emerging Hot Markets: Bradenton and Sarasota

As housing inventory rises and prices fall, Bradenton and Sarasota are emerging as premier locations for homebuyers.

Benefits for Buyers

According to Jones, buyers in these Gulf Coast cities can expect:

• Increased inventory options
• Declining prices
• Extended durations for properties on the market

The Realtor Association of Sarasota and Manatee (RASM) echoed this sentiment, reporting a reduction in median sale prices alongside a rise in finalized sales, indicating a softening market.

Insight into Bradenton’s Housing Market

Located south of Tampa, Bradenton’s housing dynamics reveal favorable conditions for buyers.

• Median List Price: $432,000 as of January 2023, a decrease of over $100,000 since mid-2022.
• Days on Market: Homes are taking longer to sell, averaging 67 days in January, four days longer than last year and significantly more than during the pandemic peak.

Active Listings and Sales

• For-Sale Listings: Increased to 1,900 from about 1,600 pre-pandemic.
• Single-Family Home Sales: 498 sales in January, a 22% increase year over year.
• Median Sale Price in Manatee County: Dropped 8.6% to $480,000.

Debi Reynolds, president of RASM, highlighted the shifts in inventory dynamics affecting the buying landscape—providing many opportunities for buyers while requiring sellers to employ strategic pricing.

Sarasota’s Transition and Opportunities

Sarasota’s market has similarly experienced fluctuations, particularly in median list prices.

• Peak Price: $725,000 in July 2023
• Current Median Price: Dropped to $575,000 by January 2023

Market Trends

• Homes are now sitting on the market for an average of 67 days in January, extending further compared to the pandemic peak.
• The surrounding Sarasota County saw a 6.8% increase in home sales year over year, with 520 homes sold in January.

With more than 30% growth in active listings from January 2024, consumers now have a wider range of choices, making the market less competitive.

Cooling in the Townhome and Condo Sector

Both Sarasota and Manatee counties are witnessing notable trends in their townhome and condominium segments.

• Sarasota: The number of townhomes and condos surged to 2,463, with median prices dropping 17.4% to $347,000.
• Manatee County: Active listings climbed to 1,714, while the median sale price fell over 6% to $335,990.

Extended Time on Market

In both regions, townhomes and condos are now selling slower, averaging over 85 days on the market, further enhancing buyer negotiation leverage.

Conclusion

The current environment in the Florida housing market presents a unique opportunity for prospective buyers, particularly in cities like Bradenton and Sarasota. With rising inventories and declining prices, buyers can explore numerous options suited to their needs, while sellers need to navigate this shifting landscape strategically.

For more insights into the evolving housing markets, you can check Realtor.com and local real estate associations, which provide ongoing updates and expert analyses.

Take advantage of these opportunities while the market favors buyers!