America’s housing market has been tepid at best lately, thanks to mortgage rates edging closer to 7% for the past weeks and already-high median prices remaining flat nationwide.
However, prices in America’s top 20 hottest housing markets were up in October — by 2.9% on average compared to last year. (The median-priced home was $424,950 in October.)
The uptick in home prices all comes down to “high demand and scarce for-sale inventory,” says Hannah Jones, Realtor.com® senior economic research analyst in her report.
Just how scarce are homes in the hottest markets? While active listings were up nationally by 29.2% in October compared to the previous year, housing stock only increased by 19.7% in the 20 hottest markets.
Demand in the top 20 markets—as measured by views per property—was 2.6 times the national level in October, the same as the previous month, according to the report.
America’s hottest market is no surprise
The Manchester, NH, metro area has an impressive track record on the hottest markets list. Not only did it claim the No. 1 spot for the 10th month in a row in October, but it was also the country’s hottest housing market for the 31st time in the data’s history.
Manchester’s relative affordability compared to Boston (55 miles away) makes this unassuming city a perennial favorite in the hotness ranking.
The median home price in Manchester is $572,000, but it’s still a far cry from Beantown’s median price of $837,450.
What else does New Hampshire have that Massachusetts doesn’t? Zero state income or sales tax.
“This Boston-adjacent metro has been red-hot since March 2021, ranking among the top 3 markets each month for more than three years,” says Jones. In fact, Manchester’s listings received 3.5 times more views in October than the national average.
The state with the most hot markets
The Northeast and Midwest regions continue to dominate the hottest markets rankings as the only two regions to appear on the top 20 list for more than a year.
The New England state of Connecticut has the most metros on the list with four hot metros: Hartford, CT, (No. 3); Worcester, CT, (No. 6); New Haven, CT, (No.15); and Norwich, CT, (No. 16).
The Constitution State’s appeal lies in its quick access to major hubs like New York and Boston, excellent public schools, and stunning green spaces.
Moving to the middle of the country, Ohio came in with three metros in the top 20: Akron, OH, (No. 9); Canton, OH, (No. 12); and Toledo, OH, (No. 20).
While Connecticut’s median home prices range from $400,000 (New Haven) to $527,000 (Worcester), Ohio’s median is $252,000 (Canton) or less.
“Midwest markets, such as the list’s markets in Ohio and Illinois, appeal to today’s buyers because of their affordability in light of today’s still-high home prices and upper-6% mortgage rates,” says Jones.
The most improved large markets
One famous metro rose a whopping 88 spots on the hottest markets list in October to hit No. 164—the New York-Newark-Jersey City, NY/NJ, area.
“The New York City metro area saw the biggest jump in its hotness ranking among large U.S. metros compared to last year,” says Jones. “Though the area has seen relatively strong demand and a quickening market pace over the last few months, it has still not broken into the top half of markets, in terms of hotness rank, ever in the data’s history. However, this month is New York’s hottest ranking since May 2018.”
Nearby Pennsylvania also proved desirable among homebuyers in October, with Philadelphia climbing 49 spots and Pittsburgh rising 44 spots.
The mighty Midwest shared the month’s fastest-climbing market in October with New York/New Jersey, with Detroit ranked No. 56, climbing 35 spots.
Pandemic boomtowns’ waning popularity
The West and South do appear on the hottest market list, in the top 200, because the two regions have “have fallen from popularity,” says Jones.
The metros that have dropped the furthest include Tampa, FL, (124 spots lower) and Asheville, NC, (117 spots lower), were also once COVID-19 pandemic hotspots.
It’s important to note, however, that these two markets faced widespread devastation from hurricanes Helene and Milton in October and are in the process of rebuilding.
Faster sales in hot markets
Buyers looking for homes in the hottest markets did not put off making an offer when they saw a house that ticked their boxes.
Homes on the list spent 35 days on the market in October compared to the national average of 58.
“This was the same pace as last year but more than three weeks faster than the national median,” Jones notes. “High demand and scarce inventory conditions drive views-per-property higher, upping the competition for homes in the hottest markets and leading to snappier home sales.”