Forget the coasts! This summer, America's hottest real estate markets are whispering tales of affordability and a quieter pace of life. Ditching the typical big-city buzz, buyers are flocking to unexpected locales, snapping up homes with lightning speed.
As per Realtor.com's Market Hotness rankings, leading the charge in July is Oshkosh, WI, a name synonymous with beloved children's clothing but now making headlines for its scorching hot real estate. Boasting a median list price of $374,000—a whopping $65,950 below the national average—Oshkosh offers budget-friendly housing coupled with a peaceful atmosphere.
This shift towards affordability and a less frenetic pace is reflected throughout Realtor.com's July hottest housing markets list, which reveals some intriguing trends:
Price Surge and Soaring Demand: A Snapshot of the Hottest Markets
The hottest housing markets are outperforming the national average in both price growth and demand. While the national housing market witnessed flat year-over-year prices in July, the hottest markets told a different story.
Here's a glimpse into the trends:
- Price Growth: July witnessed a significant uptick in price growth in the hottest markets. It rose from 8.1% in June to an average of 11.0% in July, fueled by intense competition.
- Demand: Measured by views per property, demand in the hottest markets was an impressive 2.8 times higher than the national level in July, consistent with the previous month.
Let's take the example of Oshkosh-Neenah, WI, our hottest market for July:
- Listing Viewership: This metro area saw an astounding 3.7 times more listing viewership compared to the US average in July.
- Price Appreciation: Prices in the Oshkosh-Neenah metro area climbed significantly, registering a 15.0% year-over-year increase.
Inventory Struggles: A Tale of High Demand and Limited Supply
While active listings nationwide saw a 36.6% year-over-year increase in July, the hottest markets presented a contrasting picture. The average inventory growth in the top 20 hottest markets was a relatively modest 18.4% year-over-year in July.
Here's a closer look at the inventory landscape:
- National Inventory: Inventory remained approximately 30% below pre-pandemic levels in July.
- Hottest Markets Inventory: The hottest markets experienced a sharper decline, with an average 66.9% decrease in inventory during the same period.
This disparity in inventory levels between the national average and the hottest markets underscores the impact of surging demand coupled with limited supply. It's a classic case of too many buyers vying for too few homes, creating a highly competitive environment.
The combination of high demand and scarce inventory fuels higher views-per-property, intensifying competition in the hottest markets. As a result, homes in these sought-after locations are being snapped up at a faster pace.
In July, the average time a home spent on the market in the hottest markets was just 26 days – a remarkable 5 days faster than the previous year and roughly half the national median.
New Entrants and Notable Climbers: Tracking Market Movement
The July Hottest Housing Markets list welcomed some new entrants and witnessed some significant upward movement from previous contenders:
Consistent Performers: A significant majority – 14 out of 20 markets – from June's list maintained their presence in July's rankings.
- Biggest Jumpers:
- Monroe, MI: Leap frogged from 36th to 6th position.
- Rochester, NY: Climbed impressively from 38th to 9th position.
Other Notable Climbers:
- Lancaster, PA
- Peoria, IL
- Green Bay, WI
- Cleveland-Elyria, OH
A year-over-year analysis of the 300 ranked markets reveals some noteworthy climbers:
- Bellingham, WA: Shot up an impressive 131 spots.
- Syracuse, NY: Climbed significantly, gaining 107 spots.
- Champaign-Urbana, IL: Marked a notable rise of 102 spots.
Departing Markets: Shifting Dynamics
Six markets that enjoyed a spot in June's top 20 dropped off the list in July:
- Bridgeport-Stamford, CT
- Columbus, OH
- Reading, PA
- Erie, PA
- Lafayette, IN
- Norwich, CT
However, their departure wasn't a steep fall. They settled within a respectable range of 22nd to 43rd, demonstrating continued desirability. This persistence underscores the enduring appeal of Midwest and Northeast metros, which have dominated the hottest markets list since February 2022.
When we shift our focus to the metros that experienced the most significant decline in ranking over the past year, a pattern emerges:
- Southern and Western Markets: The metros experiencing the steepest decline are primarily concentrated in the Southern and Western regions of the US.
The metros that have witnessed the most significant decline in ranking are:
- Lubbock, TX: Dropped 131 spots.
- Wichita Falls, TX: Fell 116 spots.
- Decatur, AL: Experienced a decline of 112 spots.
- Yuma, AZ: Slipped down 104 spots.
The Top 20 Hottest Markets – July 2024
1. Oshkosh, WI
- Median List Price: $374,000
- Days on Market: 18
Oshkosh has emerged as the hottest housing market, recognized for its affordability and rapid sales pace. Properties here are attracting immense buyer interest, boasting an average of only 18 days on the market—significantly quicker than the national average. Its picturesque setting by Lake Winnebago and a thriving local community make it a desirable place for families and first-time buyers.
2. Hartford, CT
- Median List Price: $444,000
- Days on Market: 22
Hartford continues to showcase a robust housing market with its rich history and proximity to major metropolitan areas. Homebuyers are drawn by a blend of urban conveniences and suburban living. Listings in Hartford are selling quickly, typically within 22 days, highlighting its growing appeal to families seeking a new home in Connecticut.
3. Manchester, NH
- Median List Price: $585,000
- Days on Market: 20
As the largest city in New Hampshire, Manchester offers a vibrant culture, excellent schools, and no state income tax. The median list price may be higher at $585,000, but homes spend only 20 days on the market, reflecting robust demand. This city attracts those looking for a balance between urban amenities and outdoor recreation.
4. Rockford, IL
- Median List Price: $216,000
- Days on Market: 24
Rockford is proving that affordability does not have to compromise quality of life. With a median list price of just $216,000, it remains one of the most accessible markets in the top rankings. Homes here typically remain on the market for 24 days, making it an excellent option for first-time homebuyers and those looking to relocate.
5. Akron, OH
- Median List Price: $257,000
- Days on Market: 25
Akron stands out due to its low median list price of $257,000, attracting buyers seeking homeownership without the hefty financial burden. With an average of 25 days on the market, homes are moving swiftly, showcasing the high demand for this affordable market in Ohio.
6. Monroe, MI
- Median List Price: $305,000
- Days on Market: 27
Monroe's location along Lake Erie and its family-friendly atmosphere contribute to its appeal. With homes spending 27 days on the market and a median price of $305,000, it finds a sweet spot for buyers searching for charm and affordability.
7. New Haven, CT
- Median List Price: $425,000
- Days on Market: 27
Home to Yale University, New Haven blends cultural vibrancy with historical significance. The competitive market sees homes being sold within 27 days, with a median list price of $425,000, catering to both academia aficionados and families looking for a dynamic urban setting.
8. Rochester, NY
- Median List Price: $300,000
- Days on Market: 21
Offering rich cultural experiences and strong community ties, Rochester has a lot to offer homebuyers. Properties are moving quickly, with a 21-day average on the market and a median price of $300,000, making it an attractive option for diverse demographics.
9. Janesville, WI
- Median List Price: $335,000
- Days on Market: 30
Janesville's appealing price point of $335,000 draws many to the region. Homes here stay on the market for about 30 days, appealing to buyers who appreciate affordability paired with a tight-knit community atmosphere.
10. Providence, RI
- Median List Price: $599,000
- Days on Market: 27
As Rhode Island's capital, Providence lures buyers looking for a mix of city life and coastal charm. With a higher median list price of $599,000, homes are still selling quickly at an average of 27 days on the market, highlighting its desirability.
11. Canton, OH
- Median List Price: $270,000
- Days on Market: 23
Canton is gaining traction due to its affordability and community spirit. Homes here average 23 days on the market and have a median price of $270,000, making it an attractive option for homebuyers.
12. Springfield, IL
- Median List Price: $223,000
- Days on Market: 24
With a median price of $223,000, Springfield's market is appealingly accessible. Homes are in high demand, selling within 24 days on average, making it an attractive destination for new families and first-time buyers.
13. Springfield, MA
- Median List Price: $400,000
- Days on Market: 30
Springfield, MA, carries historical significance and continues to attract new residents. Here, homes remain on the market for approximately 30 days with a median list price of $400,000, appealing to diverse buyers.
14. Syracuse, NY
- Median List Price: $371,000
- Days on Market: 30
Syracuse combines affordable living with a vibrant cultural scene, reflected in its median price of $371,000. Homes typically sell within 30 days, ensuring steady buyer interest.
15. Lancaster, PA
- Median List Price: $432,000
- Days on Market: 28
Lancaster's charming rural atmosphere attracts homebuyers, despite its higher median price of $432,000. Homes remain on the market for an average of 28 days, indicating strong buyer interest.
16. Peoria, IL
- Median List Price: $179,000
- Days on Market: 31
Peoria shines with an incredibly low median list price of $179,000. Homes typically linger on the market for 31 days, making it an excellent entry point for budget-conscious buyers.
17. Concord, NH
- Median List Price: $637,000
- Days on Market: 33
As the state capital, Concord commands higher prices reflected in its median list price of $637,000. Homes remain on the market for about 33 days, balancing luxury with a serene New England lifestyle.
18. Green Bay, WI
- Median List Price: $474,000
- Days on Market: 29
Known for its passionate sports culture, Green Bay’s real estate market features homes that average 29 days on the market with a median list price of $474,000, making it appealing to a wide range of buyers.
19. Worcester, MA
- Median List Price: $550,000
- Days on Market: 31
Worcester's rich educational institutions and cultural activities attract residents. Homes here have a median list price of $550,000 and typically spend 31 days on the market, reflecting growing interest.
20. Cleveland, OH
- Median List Price: $272,000
- Days on Market: 32
Cleveland rounds out the list with a low median list price of $272,000. Homes typically stay on the market for 32 days, reflecting its established market and affordable entry points.
| Hottest Metros | Hotness Rank | Hotness Rank YoY | Viewers per Property vs US | Median Days On Market | Days on Market YoY | Median Listing Price If Active Within Period |
|---|---|---|---|---|---|---|
| Oshkosh-Neenah, Wis. | 1 | -9 | 3.7 | 18 | -13 | $374,000 |
| Hartford-West Hartford-East Hartford, Conn. | 2 | 1 | 4.3 | 22 | -2 | $444,000 |
| Manchester-Nashua, N.H. | 3 | 0 | 3.2 | 20 | -3 | $585,000 |
| Rockford, Ill. | 4 | -3 | 3.3 | 24 | 0 | $216,000 |
| Akron, Ohio | 5 | -22 | 2.7 | 25 | -10 | $257,000 |
| Monroe, Mich | 6 | -29 | 2.8 | 27 | -10 | $305,000 |
| New Haven-Milford, Conn. | 7 | -4 | 3 | 27 | -2 | $425,000 |
| Rochester, N.Y. | 8 | 6 | 2.5 | 21 | 6 | $300,000 |
| Janesville-Beloit, Wis. | 9 | -49 | 3.3 | 30 | -11 | $335,000 |
| Providence-Warwick, R.I.-Mass. | 10 | -16 | 2.5 | 27 | -9 | $599,000 |
| Canton-Massillon, Ohio | 11 | -28 | 2.4 | 23 | -12 | $270,000 |
| Springfield, Ill. | 12 | -39 | 2.3 | 24 | -12 | $223,000 |
| Springfield, Mass. | 13 | 8 | 2.7 | 30 | 7 | $400,000 |
| Syracuse, N.Y. | 14 | -107 | 2.5 | 30 | -21 | $371,000 |
| Lancaster, Pa. | 15 | -14 | 2.2 | 28 | -7 | $432,000 |
| Peoria, Ill. | 16 | -52 | 2.5 | 31 | -10 | $179,000 |
| Concord, N.H. | 17 | 13 | 2.8 | 33 | 9 | $637,000 |
| Green Bay, Wis. | 18 | -20 | 2.2 | 29 | -8 | $474,000 |
| Worcester, Mass.-Conn. | 19 | 10 | 2.4 | 31 | 6 | $550,000 |
| Cleveland-Elyria, Ohio | 20 | -44 | 2.4 | 32 | -8 | $272,000 |
Large Markets Heating Up: A Shift in the Landscape
The largest 40 housing markets across the country experienced a collective increase in heat this July, with an average of 3 ranks higher compared to July 2023. However, this year-over-year surge is the smallest since February 2023, signaling a potential stabilization.
- Increased Demand: These larger urban markets witnessed approximately 6.5% more views per listing compared to the national average in July.
- Faster Sales: Homes in these markets sold at a swifter pace, spending 9 fewer days on the market than the national median.
- Price Adjustments: Interestingly, prices in these large markets saw an average annual decline of 1.1% – the first such instance recorded in the data's history. This suggests a potential market adjustment in response to somewhat subdued buyer demand, leading to the sale of lower-priced homes.
The observed slowing price growth, both nationally and in the largest markets, can be partly attributed to a shift in the available inventory:
- Rise of Affordable Housing: There's been a surge in affordable inventory. Nationally, there are roughly 47% more homes listed within the price range of $200,000 to $350,000 compared to the previous year.
Top Gainers: Large Markets Making Strides
This July, five large metros stood out with the most significant jumps in their rankings:
- Las Vegas-Henderson-Paradise, NV: An impressive leap of 73 spots.
- Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: A substantial climb of 69 spots.
- Kansas City, MO-KS: A noteworthy gain of 63 spots.
- Minneapolis-St. Paul-Bloomington, MN-WI: Another significant rise of 63 spots.
- Chicago-Naperville-Elgin, IL-IN-WI: A remarkable jump of 61 spots.
These upward-trending markets secured rankings ranging from 55th (Chicago) to 184th (Las Vegas) on July's list.
Markets Seeing the Largest Jump in Rankings (July 2024): A Closer Look
| Metro | Hotness Rank | Hotness Rank YoY | Viewers per Property vs US | Median Days On Market | Days on Market YoY | Median Days On Market Vs Us |
|---|---|---|---|---|---|---|
| Las Vegas-Henderson-Paradise, Nev. | 184 | -73 | 0.70 | 39 | -7 | -11 |
| Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. | 108 | -69 | 1.30 | 41 | -4 | -9 |
| Kansas City, Mo.-Kan. | 159 | -63 | 1.20 | 47 | -4 | -3 |
| Minneapolis-St. Paul-Bloomington, Minn.-Wis. | 72 | -63 | 1.20 | 32 | -4 | -18 |
| Chicago-Naperville-Elgin, Ill.-Ind.-Wis. | 55 | -61 | 1.30 | 29 | -7 | -21 |
These top 20 hottest markets highlight the diverse opportunities available across the U.S. from budget-friendly options in cities like Rockford and Peoria to more expensive choices like Concord and Providence. As buyer interest surges, understanding the trends in each of these markets becomes crucial for potential homeowners and investors eager to navigate the current landscape effectively.
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