The Housing Market Is Turning a Corner in Sarasota and Lakewood Ranch Going into 2026

The Housing Market Is Turning a Corner in Sarasota and Lakewood Ranch Going into 2026

The Market Is Quietly Rebuilding Strength Across Sarasota and Lakewood Ranch

After years of elevated mortgage rates and cautious buyers, the real estate market in Sarasota, Lakewood Ranch, and the broader Manatee–Charlotte County region is showing clear signs of renewed movement. Sellers who stepped back are returning. Buyers who waited on the sidelines are re-engaging. Activity is building—steady, not explosive—and that shift is laying the groundwork for a stronger 2026.

Here are the trends shaping today’s momentum in Southwest Florida.

1. Mortgage Rates Are Gradually Easing, Boosting Affordability

Mortgage rates will always fluctuate, especially in uncertain economic conditions. But when you look at the broader trend, rates have been moving downward throughout 2025—creating meaningful relief for buyers in Sarasota and Lakewood Ranch.

Recent months have delivered some of the lowest rates of the year. Freddie Mac’s Chief Economist, Sam Khater, explains:

“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”

That improvement matters even more in places like Lakewood Ranch and Sarasota, where demand is strong and price growth has remained steady.

According to Redfin data, buyers with a $3,000 monthly budget now qualify for roughly $25,000 more home than they did one year ago. More buying power means deeper opportunity—especially in a competitive Florida market.

2. More Homeowners in Sarasota, Manatee & Charlotte County Are Ready To List

For nearly two years, many homeowners stayed put to protect their historically low mortgage rates. But as rates relax, the “lock-in effect” is easing, and more sellers in Sarasota, Lakewood Ranch, Venice, North Port, and the wider region are preparing to list.

Life changes—downsizing, upsizing, relocating—are becoming bigger motivators again.

Realtor.com data shows that inventory in Florida is rising and approaching levels not seen in six years.

This increase is positive news for buyers who have been waiting for more options. And for sellers, it signals a market moving closer to balance, with healthier competition and more predictable pricing.

3. Buyers Are Returning as Inventory and Rates Improve

Demand is picking up across Sarasota, Manatee, and Charlotte County. With more homes to choose from and improving affordability, buyers are stepping back into the market.

The Mortgage Bankers Association reports that purchase applications are higher than this time last year—an indicator that buyer confidence is climbing.

Major housing authorities—including Fannie Mae, MBA, and NAR—expect this forward momentum to continue into 2026. It won’t be a fast surge, but it will be steady, meaningful growth.

Bottom Line

The real estate market in Sarasota, Lakewood Ranch, Manatee County, and Charlotte County is finally turning a corner. Lower mortgage rates, growing inventory, and returning buyers are reshaping the landscape as 2026 approaches.

If you're considering buying or selling in the year ahead, now is the time to prepare.

For a personalized market strategy, connect with Darren Dowling at 941-467-3448. He can guide you through the latest trends and help you make informed decisions in this evolving market.