The Surprising State Where 5 Of America’s Hottest Markets Are Hiding—Including A Shocking New No. 1

Realtor July 14, 2024

Buyer

The Surprising State Where 5 Of America’s Hottest Markets Are Hiding—Including A Shocking New No. 1

With mortgage interest rates near 7%, home prices have gone flat nationwide as sellers try to entice cash-strapped buyers to make an offer. But prices in America’s hottest housing markets are still rising—by a whopping 8.1% on average compared to last year.

According to a new report, demand in the top 20 markets—as measured by views per property—was 2.8 times the national level in June. However, demand was down from the previous month, when it was three times the national level.

“This suggests that though the month’s hottest markets are seeing significantly more demand than the typical home nationally, still-challenging housing conditions are perhaps eating away at buyer demand,” notes Realtor.com® economic analyst Hannah Jones in her analysis.

The hottest market—and state—might surprise you

Hartford, CT, ranked as the country’s hottest housing market this June. Although this is the metro’s first time at No. 1 in nearly a year since July 2023, Hartford is no stranger to the hottest-markets list. The Connecticut city has ranked among the top 20 each month since February 2022 and has ranked first a total of five times.

Hartford’s listings received 4.4 times more views in June than the national average, the largest margin among any of the top 20 markets. The median home price here is $450,000—only $7,500 above the national average—and it’s a mere two hours from New York City, where prices hover much higher at $825,000.

top 20 hottest markets

In fact, Connecticut could also be dubbed the hottest state in June, with five metros making it into the top 20.

In addition to Hartford coming in at No. 1, real estate in the Nutmeg State is also hot in New Haven-Milford, CT (No. 9); Worcester, MA.-CT (No. 12); Bridgeport-Stamford-Norwalk, CT (No. 13); and Norwich-New London, CT (No. 19).

Connecticut’s allure comes from its close proximity to major cities, including New York and Boston, along with its top-notch public schools and amazing green spaces.

More hot markets

Manchester, NH, ranked as the second hottest market, with its listings getting 3.3 times more views than the national average. A typical home there costs $598,000, and the city appeals to many because it’s just an hour from Boston, where median prices are nearly double that at $969,700. So, Boston commuters can save a bundle on housing in New Hampshire, which also boasts no state income or sales tax.

Rockford, IL, just 90 minutes outside Chicago, nabbed the No. 3 spot on the list. In June, houses there spent a median of 19 days on the market—26 days less than the national average. Rockford is attractive to many buyers because it has a lower cost of living than many other Illinois cities, with a median housing price of just $220,000.

Rounding out the top five of the list were Oshkosh-Neenah, WI, with its listings getting 3.4 times more views than the national average, and Rochester, NY, with houses spending a median of 17 days on the market—28 days less than the national average.

For the ninth month in a row, the Northeast and Midwest were the only regions that made the top 20, with 13 and seven markets respectively.

“The Midwest and Northeast metros have dominated the list since February 2022,” notes Jones.

Newcomers to the hottest-markets list

All but two markets in the top 20 were also on May’s list. Erie, PA, and Syracuse, NY, entered the list this month ranked 17th and 14th, respectively.

“Syracuse was an especially notable new entry, as the metro has not ranked among the 20 hottest markets before.” says Jones.

Syracuse is a family-friendly college town nestled in upstate New York. It’s the home of Destiny USA, New York’s largest shopping, dining, and entertainment destination.

Markets that heated up—and cooled down—the most

The markets in the top 300 that climbed the most are the affordable metros of Bloomington, IL (165 spots hotter); Champaign-Urbana, IL (113 spots hotter); the aforementioned Syracuse, NY (110 spots hotter); and Lexington-Fayette, KY (107 spots hotter).

Meanwhile, the metros that have fallen the furthest on the list include a mix of Southern and Western metros that have fallen from popularity, according to Jones. They are Wichita Falls, TX (138 spots lower); Lubbock, TX (133 spots lower); Santa Maria-Santa Barbara, CA (97 spots lower); and Anchorage, AK (84 spots lower).

Speedier sales in hottest markets

Homes in the hottest markets sold an average of four days faster than last year and three weeks faster than the national median in June.

“High demand and scarce inventory conditions drive views per property higher, upping the competition for homes in the hottest markets and leading to snappier sales,” says Jones.