Want To Snag a Real Estate Deal? These 20 ‘Cold’ Markets May Be a Buyer’s Best Shot at a Bargain

While the nation’s hottest housing markets always garner tons of attention with their boisterous bidding wars and lightning pace, another far quieter corner of the real estate world deserves attention, too.

We’re talking about America’s coldest markets.

These are the places across the country where home sellers might hear crickets after they list. Their open houses might end up empty. As desperation kicks in, these sellers might start slashing their prices or offering other incentives to entice a buyer to bite.

And believe it or not, such markets exist—and they can offer homebuyers some welcome relief right about now.

What ‘hot’ and ‘cold’ real estate markets really mean

Realtor.com® regularly publishes a “hotness score” for the 300 largest metro areas in the country. This score is an equally weighted composite metric of a region’s “supply score” and “demand score,” considering factors such as days on the market, inventory changes, price fluctuations, and unique listing page views per property.

A lower score signifies a cooler (soft) housing market, while a higher score indicates a hotter (strong) housing market.

America's coldest housing markets—and why homebuyers should care

According to Realtor.com data, the coldest markets right now can be found in the South, particularly along the Gulf in states such as Texas, Florida, and Louisiana.

Among the 20 coldest housing markets, 15 are in Texas, Florida, and Louisiana. That includes Lake Charles, LA; Punta Gorda, FL; McAllen, TX; Naples, FL; and Cape Coral, FL.

Why is the Gulf market, despite its soaring temperatures on the ground, so cold on the housing front? It's because the area is experiencing some unique challenges. While high home prices and rising mortgage rates have stretched housing affordability nationwide, Gulf markets are also facing additional increases in home insurance costs.

And unlike the Northeast and Midwest housing markets, there's a great deal of single-family construction hitting the market in the South. As that new-home supply becomes available in Southeast markets, and builders use affordability adjustments like buy-downs to sell it, it's leading to a cooling effect in the resale market.

Cue in the deals.

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

Are cold housing markets untapped opportunities for homebuyers?

To be sure, home sellers in cold markets will generally be more willing to meet a buyer halfway. But does that really mean that these are places where homebuyers can score a deal that they'll truly be happy with? Aren't these markets "cold" for a reason?

McLaughlin concedes that these cold market bargains aren't all upside for buyers.

"What's the catch? Well, if you have to sell soon, you'll be faced with the other side of that coin," he points out. In other words, even if you land a bargain in a cold market, you might be stuck with it for a while—so it's probably not smart to buy if you aren't willing to stay put for a while.

After all, no bargain is all that great if you hate where you live, so make sure to not get sucked in too much by price alone. If anything, a cold market means you'll have the time and negotiation power to make the right decision rather than a rushed one.

As McLaughlin says, "Homebuyers in cold markets can be cool in the homebuying process by not needing to move fast and not needing to jump on the first home they see."