None of the methods worked for me. But I have found this Real time matplotlib plot is not working while still in a loop
All you need is to add
plt.pause(0.0001)
and then you could see the new plots.
So your code should look like this, and it will work
import matplotlib.pyplot as plt
import numpy as np
plt.ion() ## Note this correction
fig=plt.figure()
plt.axis([0,1000,0,1])
i=0
x=list()
y=list()
while i <1000:
temp_y=np.random.random();
x.append(i);
y.append(temp_y);
plt.scatter(i,temp_y);
i+=1;
plt.show()
plt.pause(0.0001) #Note this correction