These 16 major housing markets enter spring 2026 with enough supply to create homebuyer deals

"Generally speaking, housing markets where inventory (i.e., active listings) has returned to pre-pandemic 2019 levels have experienced weaker home price growth (or outright declines) over the past 42 months. Conversely, housing markets where inventory remains far below pre-pandemic 2019 levels have, generally speaking, experienced more resilient home price growth over the past 42 months."

"Many of the softest housing markets, where homebuyers have gained the most leverage since the Pandemic Housing Boom ended, are located in Southern and Mountain West regions. Many of those areas were home to many of the nation's top pandemic boomtowns, which experienced significant home price growth during the Pandemic Housing Boom, which stretched housing prices beyond local income levels."

"The housing market softening in these areas was further accelerated by the abundance of new home supply in the pipeline across the Sun Belt. When and where needed, builders are often willing to reduce prices or make other affordability adjustments to maintain sales. These adjustments in the new construction market also create a cooling effect on the resale market."

Active listings are rising year-over-year across most regional markets, yet a slight majority remain below pre-pandemic 2019 inventory levels. Markets that have returned to 2019 inventory levels experienced weaker home price growth or declines over 42 months, while markets with inventory far below 2019 levels showed more resilient price growth. Southern and Mountain West regions, including former pandemic boomtowns like Punta Gorda and Austin, face the softest conditions as they relied on pandemic migration and now struggle with prices exceeding local incomes. Abundant new construction in the Sun Belt accelerates softening through builder price reductions, shifting buyers from resale to new homes. Northeast and Midwest markets, less dependent on pandemic migration and with fewer new construction projects, maintain stronger positions.

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