Just one year ago, the U.S. housing market was characterized by a severe shortage of homes for sale, and yes, 2023 hasn't offered much respite. But not all regional markets are seeing such slim pickings.
Just 31 of the nation’s 100 largest metropolitan areas experienced an increase in the number of homes for sale in July compared with a year earlier, while inventory dropped in the other 69 metros. The markets where the number of homes for sale has risen the most include sunny metros such as Cape Coral, Fla., with a 51.1% annual increase in active listings, El Paso, Texas, with a 40.9% gain, and New Orleans, with an uptick of 39.6%, according to Realtor.com.
The places that are seeing the biggest increases in homes for sale are generally the more affordable Southern and Midwestern markets. They also became more desirable during the pandemic, but prices didn’t rise quite so high, so quickly.
“These markets were really hot,” [Hannah] Jones says of markets like Cape Coral, FL, New Orleans, and Memphis, TN. “But buyer demand has waned, so now homes are sitting on the market longer and active listings are accruing.”