Sarasota Area Real Estate Market Update: July 2026 — New Listings and Under Contract

While closed sales tell us what has already happened, new listings and pending sales tell us where the market is heading. In July 2026, the supply picture across Sarasota, Manatee, and Charlotte Counties continued to tighten. Fewer homes came on the market compared to the previous year, and the ones that did arrive priced competitively moved into pending status quickly. Here is the full breakdown of new inventory, pending sales, and what the supply-demand balance means for buyers and sellers.

I am Kim Donahue, REALTOR with Medway Realty, license SL3352997, and I have been tracking this market for more than 30 years. These are the numbers I watch most closely because they tell me what is coming next.

Single-Family Homes: New Listings and Pending Sales

New single-family listings continued to decline in July. Sarasota County saw approximately 880 new listings come to market, about 6% fewer than in July 2025. Manatee County saw a similar trend, with roughly 710 new listings, down about 3.5% year over year. This is not a surprise. Sellers who bought or refinanced at historically low interest rates remain reluctant to list their homes and trade into a higher-rate mortgage, and the summer months typically see a slight dip in new inventory compared to the spring peak.

At the same time, pending sales rose. Sarasota County recorded approximately 690 single-family homes going under contract in July, up 4% year over year. Manatee County saw roughly 560 pending sales, a 7% increase. The combination of declining new supply and rising demand is the classic recipe for a tightening market, and that is exactly what we are seeing. The median list price for new single-family listings in Sarasota County was $535,000, 5.2% higher than a year ago, indicating that sellers are pricing into the current appreciation trend rather than overshooting it.

Condos: New Listings and Pending Sales

The condo segment is where the inventory story gets interesting. New condo listings in July came in at roughly 420 across Sarasota and Manatee Counties, down about 8% year over year. That is a larger drop than we saw in single-family, and it continues a trend that has been building for several months. Fewer condo owners are choosing to list, likely because of the same factors that have been pressuring the condo market: uncertainty about reserve requirements, rising HOA fees, and insurance costs.

But here is the encouraging piece: pending condo sales rose 9% year over year. That is the third consecutive month of year-over-year gains in condo pending sales, and it tells me that buyers are beginning to come back into this segment. They are finding value at the current price levels, and they are getting comfortable with the disclosures and due diligence required by Florida's new condo laws. The median list price for new condo listings slipped to $359,000, down 2.5% from a year ago, which reflects sellers adjusting their expectations to meet the market.

Active condo inventory in Sarasota County fell to roughly 1,850 units, down 12% from July 2025. Months of supply dropped to approximately 6.0, a significant improvement from the 8.3 months recorded a year ago. While 6.0 months still tilts toward a buyer's market (any figure above 5-6 months generally favors buyers), the direction of change is favorable for sellers.

Townhouses: New Listings and Pending Sales

Townhouse inventory remained tight in July. Only about 95 new townhouse listings hit the market across the region, roughly flat year over year. Pending sales totaled approximately 75, up 5%, which means the absorption rate on townhouses is among the healthiest of any segment. With limited supply and steady demand, well-priced townhouses in desirable communities are moving at a faster clip than either single-family homes or condos.

Inventory Levels and Months of Supply

The months-of-supply data tells a story of a region that is not uniform. Sarasota and Manatee Counties have single-family markets operating at about 4.0 to 4.1 months of supply. That is seller-friendly territory by traditional standards, though not the extreme inventory shortages we saw in 2021 and 2022. Condo markets in both counties are closer to balance, with Sarasota at 6.0 months and Manatee at 6.5 months. Charlotte County remains the most balanced-to-buyer-friendly market in the region, with single-family at 6.1 months and condos closer to 9 months of supply.

Absorption Rate Analysis

Absorption rate measures how quickly available homes are being sold. In Sarasota County's single-family market, the absorption rate held at approximately 24% per month in July, meaning roughly one out of every four listed homes sold during the month. That is a healthy rate consistent with a balanced-to-seller market. For condos, the absorption rate was approximately 16% per month, lower but improving from the 12% rate we saw earlier in the year.

The key takeaway: single-family homes in Sarasota and Manatee Counties are being absorbed at a rate that supports price appreciation. Condos are absorbing more slowly, but the trend is positive. The gap between single-family and condo absorption rates is narrowing, and if pending sales continue to rise, we could see condo inventory tighten further in the second half of 2026.

What This Means for Buyers and Sellers

For buyers: the window of ample single-family inventory that existed in late 2024 and early 2025 has narrowed. Fewer new listings are coming to market, and the ones that are priced well are going under contract faster. If you have been waiting for more options, the inventory picture is not likely to improve dramatically in the coming months. The best strategy right now is to be pre-approved, clear on your priorities, and ready to move when the right property appears. For condos, you have more time and more negotiating room, but that window is also beginning to close as pending sales pick up.

For sellers: the market is in your favor for single-family homes, but it rewards accuracy over ambition. The days of expecting 100% of asking price regardless of condition or location are behind us. Homes that are priced within 2-3% of their true market value, staged well, and marketed effectively are seeing offers within two to three weeks. Homes that test the upper edge of the price range are sitting for 60 days or more and often requiring price adjustments.

Kim's Expert Commentary on Supply and Demand

The most important dynamic in the current market is the supply constraint on the single-family side. We are not building enough new homes to meet demand, and existing homeowners are staying put longer because of their low mortgage rates. That combination is not going to resolve quickly. Even if interest rates ease in the second half of 2026, the inventory pipeline will take months to respond. For buyers who are ready and qualified, waiting for more supply to appear is likely to be frustrating.

On the condo side, I see a market that is working through a necessary reset. The new reserve requirements are a good thing for the long-term health of Florida's condo communities, but the transition period has created real uncertainty for both owners and buyers. The buyers who are coming into the market now are doing their homework. They are asking for reserve studies, they are reviewing meeting minutes, and they are budgeting for potential special assessments. That is smart buying behavior, and it is exactly what the market needs.

For the full picture of July closed sales and pricing trends, read the companion post: Sarasota Market Update: July 2026 — Homes Sold. For a broader look at the buying process, visit my Buying Guide, and for the seller side, the Selling Guide covers pricing, preparation, and timing.

Reach me at (941) 724-2587 or schedule a conversation. I am Kim Donahue, REALTOR with Medway Realty, license SL3352997, serving buyers and sellers across Sarasota, Manatee, and Charlotte Counties.