Luxury Real Estate Market Update: Sarasota & Manatee Counties – May 2025
As of May 2025, the luxury real estate market—defined here as properties priced at $2,000,000 and above—in Sarasota and Manatee counties remains active, though increasingly nuanced. Inventory, buyer demand, and pricing trends are all showing signs of a market recalibration following several years of accelerated growth.
Market Overview
In Sarasota County, the number of active luxury listings has grown approximately 12% year-over-year, signaling a slight shift toward a more balanced market. Closed sales over $2M remain steady, driven by continued demand for waterfront estates on Siesta Key, Lido Key, and Longboat Key, as well as downtown Sarasota condominiums with bay and gulf views.
Manatee County, particularly Anna Maria Island and Lakewood Ranch Country Club, has seen more modest inventory increases but a notable uptick in days on market for homes over $2.5M—averaging 81 days in Q1 2025 compared to 54 days in Q1 2024.
Key Trends
Price Adjustments: Roughly 28% of luxury homes listed above $2M in Q1 2025 have undergone at least one price reduction before going under contract.
Cash Dominance: Over 60% of luxury transactions in both counties are closing with cash, underscoring strong buyer liquidity and a continued influx of high-net-worth individuals from out of state.
New Construction Premiums: Newly built luxury homes, particularly in West of Trail and The Lake Club, are commanding premiums of 10–15% over comparable resale properties.
Waterfront Scarcity: Demand remains strongest for gulf-front and canal-front homes with deepwater dockage, where inventory is still limited and prices remain resilient.
Outlook
While interest rates have stabilized, elevated construction costs and stricter lending requirements for jumbo loans may continue to moderate the pace of growth. However, the Sarasota-Manatee luxury sector remains fundamentally strong, bolstered by demographic shifts, tax migration from high-cost states, and an expanding cultural and lifestyle appeal.
Bottom Line
Whether you’re buying or selling in the luxury tier, this is a market that requires precision pricing, strategic marketing, and deep local expertise. If you’re considering a move, I’m always available to provide data-driven guidance and insight tailored to your unique goals.
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Drew Russell
Top Luxury Real Estate Agent, Sarasota FL