Rates May Dip – But Competition Will Rise
There’s plenty of buzz about the Fed lowering interest rates. While they may ease down, we don’t anticipate dramatic drops anytime soon. Many experts predict mortgage rates will hover in the mid-6% range into 2026. If rates do dip to around 6% or below, about 5.5 million more households would suddenly be able to afford a home, and an estimated 550,000 would jump into buying within 12-18 months.
In other words, today’s slightly higher rate with less competition may be a better deal than tomorrow’s lower rate with bidding wars.
Sarasota-Bradenton: More Choices, Steady Values
Locally, inventory has grown, giving buyers more options and breathing room. The median single-family home price in Sarasota County is around $470,000, which is about 13% lower than a year ago. However, put that in perspective – prices are still roughly 35% higher than in late 2020. In other words, the market took a healthy breather from the pandemic price spike, but long-term values are up, and homeowners continue to hold strong equity.
Homes are also taking longer to sell, which gives buyers more leverage to negotiate price, terms, or even repairs. Sarasota County now has around 7 months of housing supply (up from about 4 months last year) – a level that signals a more neutral market instead of the feeding frenzy of 2021-2022. This creates a window of opportunity for smart buyers.
Insurance, Hurricanes, and Reality Checks
Yes, insurance costs have risen, and hurricanes are part of Florida life, but neither has slowed the Sarasota-Bradenton market. Buyers are adapting by seeking homes with newer roofs, impact windows, and modern construction that holds up well in storms and often carries lower insurance premiums.
At the end of the day, the sunshine, beaches, and lifestyle continue to outweigh the risks. Even after active storm seasons, out-of-state buyers keep coming – many paying cash after selling in higher-priced markets up north. Insurance has become just another line item to plan for, not a deal-breaker, and with the right guidance, it’s manageable.
Builders Are Offering Big Incentives
Another advantage right now: builders are motivated. From Lakewood Ranch to Parrish, incentives like rate buydowns, closing cost credits, and design upgrades are on the table. These perks can save buyers tens of thousands of dollars – but they won’t last once demand ramps back up.
Pro tip: these promotions change frequently, so it pays to have a local agent who is plugged in and can let you know which builders are offering the best incentives at any given time.
Bottom Line
If owning a home in the Sarasota area is a goal for you, don’t let the headlines scare you off. The future looks bright – and that’s not just the sunshine. Get a head start now by researching neighborhoods, talking to a local expert, and getting pre-approved. By the time the crowd catches up (when rates dip later), you’ll already be sipping a drink on your new lanai. Welcome to Florida!
