Southern cities see decline as real estate markets cool

America's interest in the Sun Belt appears to be waning, according to the latest Realtor.com Hottest Real Estate Markets report. Several southern cities have experienced a notable drop in popularity.

The report evaluates market demand by examining unique views per property on Realtor.com and the number of days a listing remains active before being sold. Manchester, NH, leads for the ninth consecutive month, with listings receiving 3.2 times more traffic than average and selling in just 23 days. The median home price in Manchester is $465,000, which is higher than the national median but still affordable compared to nearby Boston.

Conversely, Savannah, GA, has seen a significant decline, dropping 118 spots in the rankings since last year. Homes there are selling 32% slower than a year ago and stay on the market for an average of 52 days. Despite having a median list price of $401,900—below the national median—sellers may face challenges attracting buyers.

Other cities experiencing similar declines include Tampa, FL, which fell 106 spots, and Blacksburg, VA, down by 105 spots. It should be noted that most data for this report was collected before Hurricanes Milton and Helene impacted Florida and parts of the Southeast.

Hannah Jones from Realtor.com states: "Many less-hot markets across the country have seen a significant buildup in housing inventory, which can absorb an uptick in demand without much upward price pressure."

The South experienced an influx of buyers during the COVID-19 pandemic leading to increased new construction in many Sun Belt areas. Robert Washington from Savvy Buyers Realty believes that while the market has softened recently, it represents "a healthy minor correction" after years of appreciation.

Here are some properties currently listed:

In Savannah, GA:

- Median list price: $401,900

- A three-bedroom home is listed at $989,000

In Tampa, FL:

- Median list price: $414,948

- A six-bedroom home had its price reduced by $49,000 to $550,000

In Blacksburg, VA:

- Median list price: $442,824

- A three-bedroom home is listed at $415,000