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

• Housing markets in Louisiana, Florida, and Texas are the country's "coldest," Realtor.com says.
• These cold locales are seeing inventories rise and prices fall amid a lack of buyer interest.
• Gulf-region housing also faces rising insurance costs, a challenge worsened by the climate. 

Housing markets in three Gulf states are the country's "coldest," with inventory moving up as prices fall lower, Realtor.com reported.

To determine the hottest property markets in the US, the real estate firm examines factors such as a listing's length, number of page views, as well as regional inventory and price fluctuations.

Based on these metrics, 15 out of the 20 lowest-scoring markets were located in Louisiana, Florida, and Texas: Lake Charles, Panama City, and McAllen-Edinburg-Mission were the coolest metros in each state, respectively.

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."

Adding to the mix of cooldown factors are rising housing insurance costs, a challenge that's unique to the Gulf region. As climate change amplifies extreme weather risks, owners are facing higher and higher coverage costs. Some insurers are even leaving, weighing on household options.