Following a couple of rollercoaster years in local real estate, during which inventory reached historic lows, the Sarasota metro area recently topped a national list that ranks places based on where home inventory saw the greatest increases over the previous year. With a 128 percent hike, our inventory more than doubled, topping other metros like Nashville, Tennessee, and Austin, Texas. The report, published by Realtor.com, used housing market data to compare inventory in May 2023 with May 2022.

However, "more inventory is a relative term," says Marlin Yoder, a local agent with Harry E. Robbins Associates. "It’s still a sellers’ market."

Indeed, compared to such low lows in inventory last year (when there was less than a month’s worth of inventory; a healthy market hovers around five to seven months), the only way to go was up. Today, homes are sitting on the market for longer (five days last year vs. 23 days now) while bidding wars are mostly behind us.

A few other factors are leading to the increased inventory. For one, buyers are more hesitant. “Homeowners have lots of equity in their home, but are paying a mortgage with a 3 percent interest rate," says Yoder. "If they sell that house, the house they want is now more expensive and comes with a 6.5 interest rate, and they can’t afford it. So people aren’t making moves."

Many sellers are also out of touch with the current market. “Some of this is due to sellers trying to catch the last wave of a hot market,” says Tina Ellis, a local agent with Preferred Shore.

Yoder agrees. “If they're listed too high, buyers are more patient now," he says. "They'll do their research and if the seller doesn't cooperate, they’re on to the next listing. There’s more negotiating now.”

And all those cranes in the sky and bulldozers on the ground are pumping out new addresses, too, with neighborhood expansions in every direction, including Parrish, Lakewood Ranch and Wellen Park. “There's a lot of new construction," says Ellis. "Developers have come to town and invested in a market that's more popular than ever.”

Yoder also sees an influx of short-term rental homes entering the market. Those properties were purchased by investors hoping to cash in on the area's popularity as a major tourist hub.

"A lot of people bought a home and didn't put thought into what it takes to manage a vacation rental," Yoder says. "Now, they're seeing if they can cash out."

Still, Yoder believes that with a proper plan, sellers can solicit multiple offers on their home and buyers can feel good about their purchase. "It's a return to normalcy. Right now is fun in the market, because it's still a good time for sellers, but there's room to negotiate and you can have buyers who aren't overpaying or rushing because that was just unhealthy," he says.

Across the country, inventory is up by a little more than 20 percent. The median price for a single-family home in the Sarasota metro area stands at $540,275, according to the Realtor Association of Sarasota and Manatee.