US housing markets with high inventory levels have slowed down in recent years, while those with low inventory have experienced strong home price growth. Among the top 50 largest metro areas, 21 major cities now have more homes for sale than pre-pandemic 2019 levels. These cities are experiencing weaker home price growth or declines.
Examples of these markets include Memphis, TN, Austin, TX, Phoenix, AZ, and San Francisco, CA. The Southeast, Southwest, and Mountain West regions have the most soft housing markets, which were previously pandemic boomtowns with high home prices.
Builders in areas like Florida are adjusting prices to maintain sales, while some Northeast and Midwest markets remain tight in terms of active inventory. This shift has created a cooling effect on the resale market, as buyers opt for new homes where deals are still available.
Source: https://www.fastcompany.com/91442420/housing-market-shift-21-major-markets-seeing-the-strongest-move-toward-home-buyers