12 cities where homes for sale are dwindling

As housing demand continues outpacing supply, tight inventory is plaguing potential buyers and putting upward pressure on home prices.

But supply in some housing markets is worse than others. The number of homes for sale fell 14.4%, the greatest year-over-year decline in 28 months, according to real estate agency Redfin.

All the while, home values rose 7.8%, with the median sales price growing to $280,500 last month, which could all point to an even tougher spring buying season than last year's. Mortgage rates are also higher, but limited supply remains the biggest strain on the housing market.

"Many buyers are concerned about interest rates, but the biggest driver of this market is inventory, not rates," Joe Krupsaw, a Redfin agent in Washington, D.C., said in a statement. "None of my clients have said they'll change their plans to buy if rates increase. I think when rates hit 4.5% we'll see some buyers reassess their budgets and what they can afford, but they won't stop looking for a home."

From Worcester, Massachusetts, to Memphis, here's a look at 12 places where housing supply is dwindling.

The data was derived from Redfin's Real-Time Housing Market Tracker, a monthly analysis of home prices, competition, sales volumes and inventory levels across the markets that Redfin serves nationwide.