The Market Is Getting Tighter, But Not Frantic
May brought a significant shift in available supply. Across both counties and all property types, inventory declined by double digits. In Sarasota's single-family market, it dropped by more than 25 percent. Meanwhile, buyer activity remained steady with pending sales rising across every segment.
The REALTOR® Association of Sarasota and Manatee (RASM) just released the May 2026 market report, and the headline is clear: supply is shrinking noticeably, but buyers are still moving with intention rather than desperation. They're evaluating carefully, taking time to understand value, and making deliberate decisions. That's a meaningful distinction.
One more thing worth noting: both single-family markets have now tightened below the 4.5-month threshold traditionally associated with a balanced market. That changes the conversation for sellers.
Here's what the data shows:
May 6
Sarasota County Single-Family Homes: Rising Sales, Shrinking Inventory
Sarasota's single-family market posted 845 closed sales in May, up 7.2% from last year. The median sale price rose 2.2% to $475,000, and the average sale price climbed 3.4% to $673,741. Cash buyers represented 42.0% of transactions, and sellers received a median of 94.2% of their original list price.
Pending sales jumped 11.4% year-over-year, showing continued buyer engagement. New listings also increased 8.7%, but the supply wasn't enough to offset broader inventory declines.
Here's what stands out: inventory fell 25.2% to 3,099 active listings, bringing months supply down from 6.6 months to 4.4 months. For the first time, Sarasota's single-family market is below balanced levels. Homes took a median of 50 days to go under contract and 92 days to close.
The bottom line: Inventory is tightening significantly in this segment. Sellers have more negotiating power than they did just a few months ago.
Sarasota County Condos & Townhomes: Continued Growth with Tightening Supply
Sarasota's condo and townhome market delivered 371 closed sales in May, up 8.5% from last year. The median sale price rose 4.9% to $336,829, and the average climbed 1.6% to $496,451. Cash buyers dominated at 61.5% of sales, and sellers received a median of 91.2% of their asking price.
Pending sales jumped 13.2% year-over-year, but new listings actually declined 8.9%, adding pressure to supply. Active inventory dropped 13.2% to 2,149 units, bringing months supply down from 9.2 months to 7.1 months.
The luxury segment showed particular strength, with 38 sales over 1 million dollars (up 40.7% from last year) and sales between 1.25 and 1.49 million tripling. However, higher-priced properties took longer to secure contracts.
Homes took a median of 67 days to go under contract and 108 days to close.
What this means: This segment still offers more selection than single-family, but inventory is tightening noticeably. Luxury buyers are active, though moving at a more measured pace.
Manatee County Single-Family Homes: Stable Sales, Significant Inventory Decline
Manatee's single-family market posted 782 closed sales in May, down just 0.5% from last year. The median sale price declined 3.8% to $460,000, but the average sale price rose 4.5% to $667,503, reflecting continued activity at higher price points.
Cash purchases represented 27.0% of closed sales, and sellers received a median of 95.4% of their asking price. Pending sales surged 19.2% year-over-year, a strong signal for future activity.
Inventory fell 11.8% to 2,832 homes, bringing months supply down from 5.2 months to 4.4 months. Like Sarasota, Manatee's single-family market is now below balanced supply levels. The luxury segment showed strong growth, with sales from 3 to 4.99 million jumping 83.3% and five homes selling between 5 and 9.99 million.
Homes took a median of 47 days to go under contract and 95 days to close, both shorter than last year.
The bottom line: Manatee's single-family market is showing balanced activity with inventory tightening. The strength in luxury transactions is noteworthy and reflects high net worth buyer interest.
Manatee County Condos & Townhomes: Growth at the Lower End, Tightening Supply
Manatee's condo and townhome market recorded 288 closed sales in May, up 8.7% from last year. The median sale price declined 5.1% to $297,000, and the average fell 1.0% to $341,985. Cash buyers represented 51.0% of sales, and sellers received a median of 93.2% of their asking price.
Pending sales increased 4.6% year-over-year, but new listings dropped sharply by 23.1%, putting pressure on available supply. Active inventory fell 16.9% to 1,452 units, lowering months supply to 6.3 months.
Growth was concentrated at the lower end, with sales below 200,000 jumping 93.9%. Homes took a median of 61 days to go under contract and 106 days to close.
What this means: Inventory is declining here as well, and entry-level buyers are particularly active. This segment continues to offer more selection than single-family, but supply is tightening noticeably.
What May's Data Means for You
May made something clear: single-family inventory is now constrained in both counties. At 4.4 months supply, we're below the level where sellers have the same kind of advantage as buyers. That's a meaningful shift from even a few months ago.
For sellers thinking about listing a single-family home, the market has improved from a few months back. Inventory is tighter, pending sales are up, and buyers are out there. For buyers, especially in single-family, the pool of available homes is smaller. The homes that are priced right and presented well are moving. Waiting on the sidelines isn't cost free anymore.
In both condos and single-family segments, understanding your specific neighborhood and price point matters more than ever. The numbers tell part of the story, but your unique situation requires local expertise and strategy.
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*Based on information and monthly reports provided by Florida Realtors® with data compiled from Stellar MLS by RASM
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