Sarasota-area home sales increased across all major market segments in August compared with a year earlier, while declining inventory strengthened sellers’ position.
Both closed and pending sales rose in the four major market categories tracked by the Realtors Association of Sarasota and Manatee. The largest year-over-year gains came in condominium and townhouse sales in both counties.
David Crawford, president of the regional realtor association and president of Catalist Realty, said that the continuation of increased sales and shorter sales cycles throughout the end of the summer season was “exciting.”
"The trend line continues to tell the story of buyers and sellers finding common ground and seeing a true market value through a similar lens,”
Crawford said in a prepared statement.
In Sarasota County, 281 condominium and townhouse sales closed in August, according to the report. That represented a 13.8% increase from a year earlier. Active inventory declined 11.8%, reducing the supply to 5.2 months.
The median sale price of these housing units rose by 3.3% to $310,000, while the average sale price saw similar growth, rising 4.7% to $441,558. In terms of purchasing trends, cash buyers accounted for 59.8% of the sales, up 3.4% from the year prior.
According to a statewide Florida Realtors report, cash sales are often indicative of the extent to which investors are active in the market, with certain exceptions.
“Investors are far more likely to have the funds to purchase a home available up front, whereas the typical homebuyer requires a mortgage or some other form of financing,” Florida Realtors Chief Economist Brad O’Connor said in a prepared statement.
Among condominium and townhouse sales, sellers received a median of 91.6% of their original list price, up from 88.5% in August 2025.
The report stated that sellers’ leverage continued to improve as homes went under contract and closed faster than a year earlier. Sellers also received a larger share of their original asking prices across all four market segments.
Sales of higher-priced condominiums and townhouses also increased in Sarasota County in August.
What about single-family homes?
While more single-family homes than condominiums and townhouses were sold in Sarasota County last month, single-family sales increased just 0.8% from August 2025.
By comparison, closed single-family home sales across Florida declined 1.4% from a year earlier, according to a Florida Realtors report.
Despite the small year-over-year increase in sales, active single-family home listings fell 20.8% to 2,619.
The median sale prices of the 646 single-family homes sold last month decreased 1.1% to $470,000, while the average sale price also declined 1.9%. Cash purchases represented only 37.3% of closed sales in the segment, with sellers receiving a median of 94.7% of their original list prices.
Higher-priced single-family activity showed more mixed signals in Sarasota County in August. Sales priced at $1 million or more decreased 8.2%, while sales between $1.5 million and $1.99 million increased 46%. Additionally, sales of single-family homes between $2 million and $2.99 million increased 18.2%.
What does the Fed’s rate increase mean for mortgages?
The Federal Reserve raised its target range for the federal funds rate by 0.25 percentage points on Sept. 16, bringing it to 3.75%-4%. The decision raised questions about whether mortgage rates would increase.
The federal funds rate directly influences borrowing costs for credit cards, automobile loans and some adjustable-rate loans. Fixed mortgage rates, however, tend to track the 10-year Treasury yield and are also influenced by expectations for inflation and economic growth.
Economists say the increase will not necessarily cause fixed mortgage rates to rise. If investors believe the Fed’s action will curb inflation, Treasury yields and mortgage rates could decline.
Melissa Cohn, regional vice president of William Raveis Mortgage, said that the Federal rate increase could help bring mortgage rates down by lowering long-term inflation projections, according to Mortgage Professional America.
“Rate hikes can be good for the mortgage market, because if the bond market feels that the Fed is fighting inflation and doing what they can and having any sort of impact, bond yields will rally, bond yields will come down, and mortgage rates will go down," Cohn said in a prepared statement.
Kendal Asbury is the real estate and development reporter for the Sarasota Herald-Tribune. Have an idea, tip or question about development? Send her an email at kasbury@usatodayco.com. Connect with her on LinkedIn or follow her on Instagram @wordsbykendal, and support local journalism by subscribing to the Herald-Tribune.
This article originally appeared on Sarasota Herald-Tribune: Sarasota home sales rise as inventory tightens across region
