'Cold' housing markets in these 3 states may be a buyer's best chance at a bargain

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Quieter corners of US housing could mean bargain deals for potential buyers, Realtor.com said, as rising unaffordability has priced out many in the broader national market. While a pandemic buying boom is partially to blame , stubborn mortgage rate highs and a shortage of available properties have only added to the problem

But conditions are different in the South. After remote workers rushed to Texas and Florida in preceding years, the construction wave that followed has left these two states with an oversupply of homes, Redfin previously reported .

That's helped prices tumble in certain metros. In fact, Miami notched the country's biggest year-to-year decline, falling 11.2% .

According to Realtor.com , the South generally leads the Northeast and Midwest in the construction of single family homes. Once made, builders are applying affordability adjustments such as buy-downs, adding more of a cooling effect.

"For homebuyers looking for comfort, Southern markets offer up much-needed hospitality," Realtor.com economist Ralph McLaughlin said in the new report. "Inventory — especially of entry-level homes — is growing, they are moving slower, and listing prices are actually down compared to last year."