After a slow start to 2025 marked by elevated inventory and soft demand, Florida’s real estate market, including Sarasota, is showing clear signs of recovery. Fewer new listings, rising pending sales, and declining months of inventory suggest that supply is normalizing and buyer activity is strengthening. Home prices have stabilized, and recent rate cuts by the Federal Reserve have boosted mortgage applications and overall market sentiment. As the year draws to a close, Sarasota’s market is trending toward renewed balance supported by resilient demand and solid economic fundamentals.
Q3 Market Outlook
Budge Huskey, Chief Executive Officer
Jackie Thiel, President
Premier Sotheby’s International Realty
Local real estate markets tend to chart their own course, moving beyond or lagging the performance of the nation as one. This year has proven no exception. While the first half of the year produced fewer sales than expected in both Florida and North Carolina, both states are showing early signs of renewed balance and confidence.
Decreasing Inventory
The first half of 2025 was, admittedly, challenged. Elevated inventory levels and softening buyer demand created headwinds testing both patience and pricing power. As we move further into the third quarter, however, conditions are shifting. Fewer new listings are entering the market, months of inventory are steadily decreasing, and new pending sales are on the rise. These indicators suggest buyer activity is returning, with markets working through excess supply in a healthy way. In fact, this month we saw strong year-over-year sales growth as well as months of inventory falling to levels considered historically normal.
Price Equilibrium
Home prices, after an extended period of rapid appreciation, have now stabilized. Importantly, there are no signs of widespread devaluation, and the data reflects a market finding equilibrium rather than contraction. The lingering effects of earlier storms continue to influence regional activity, yet optimism remains that the remainder of the season may pass without further significant disruptions.
Lower Federal Funds Rate
The Federal Reserve’s recent move to lower the federal funds rate has provided an encouraging signal to the mortgage market, supporting improved sentiment among both buyers and sellers and a significant lift in mortgage applications with a common belief there could be one to two more cuts before year end.
Optimistic Outlook
As we enter the final months of 2025, Florida and North Carolina appear to be regaining their footing, bringing a sense of optimism for what’s ahead mirrored by industry forecasts for the year ahead.
One never knows exactly what lies just around the corner, yet we are confident in our destination and the allure of our markets never in doubt. Real estate’s most talented advisors at the Laughlin Tanner Group stand ready to guide you to an elevated lifestyle and the best investment choice.
