Where are the hottest housing markets in the U.S.?
Buyers are signing more contracts to purchase homes as increasing numbers of properties come up for sale, the National Association of REALTORS® (NAR) reports, and certain markets are heating up as competition and prices rise.
If you’re looking to move across town or across the country, it’s good to know the trends in the market you’re looking to buy.
Where are the hottest housing markets?
Here are some of the hottest metropolitan housing markets according to recent data from Zillow. The methodology Zillow used to determine hot markets includes home value increases, potential changes in the employment market, the number of days homes are remaining on market listings and projected changes in homebuying trends.
Buffalo, New York
It’s frigid here in wintertime to be sure, but Buffalo’s average home price of $238,695 makes it affordable for first-time and repeat buyers. Famous for its namesake chicken wings, Buffalo is known as a town for foodies and its location near the Great Lakes makes it popular for outdoor and water sports. Zillow reports that nearly 35% of homes in Buffalo sell for under list price and spend about nine days on the market.
Hartford, Connecticut
Homes in Connecticut’s capital sell quickly compared to other markets, and the high demand works in favor of sellers eager to capitalize on the value of their properties. Hartford is home to a number of insurance companies. The job market here also includes education and health services. Homes here sell for an average of $198,170. Nearly 43% sell for less than the asking price and spend about 12 days on the market, Zillow’s most recent reports show.
New York, New York
New York City’s five boroughs make up one of the most populous cities in the world, and everyone here needs a place to live. Home prices in NYC average $796,665, and values have gone up 3.4% in the past year. As the ultimate metropolis, New York City’s job market includes some of the largest banks and investment institutions in the world and it is a major hub of the entertainment industry. Zillow reports nearly 69% of homes here sell for less than the listing price and properties spend about 48 days on the market.
Minneapolis, Minnesota
As the largest city in the state by population, Minneapolis connects with state capital St. Paul to form the Twin Cities, a metro area of nearly 3.7 million people. Employment in the city includes transportation, health services, education and business and financial services. Minneapolis is home to the headquarters of five Fortune 500 companies as well. Home prices here average $334,190, according to recent Zillow data. Properties generally spend about 14 days on the market and nearly 38% sell for less than the listing price.
Boston, Massachusetts
State capital Boston is the state’s largest city by population and it’s also the state’s economic center. One of the oldest cities in the nation, Boston is a hub for education as home to some of the most famous universities in the world. The city’s employment centers around financial services, education, biotechnology and research and tourism. Home prices here average $793,819, the latest Zillow data shows. More than 53% of homes sell for less than the listing price and spend about 10 days on the market.
Richmond, Virginia
Richmond is Virginia’s capital but not its largest population center as several other cities in the state have larger numbers of residents. The city is home to a number of courts, and employment centers around legal and financial services, banking, advertising and biotechnology. Nearly 34% of homes list for an average price of $372,574, Zillow reports, and spent a mere seven days on the market before selling.
Cleveland, Ohio
Cleveland is the second-largest city in the state by population, situated on the southern shore of Lake Erie. Its location led to rapid growth as the city was key in steel and other manufacturing industries. In recent years, its economy has expanded into industries that include health care, financial services and technology. The average home price in Cleveland is $116,316, and as Zillow reports, nearly 54% of properties sell for less than the asking price after spending about 11 days on the market.
Providence, Rhode Island
The smallest state’s capital and largest city offers a competitive housing market in a desirable location. The city boasts a number of hospitals and institutes of higher learning that help drive the economy. Homes here sell for an average of $423,301 and as Zillow reports, nearly 40% of properties sell for more than the asking price after about 10 days on the market.
Milwaukee, Wisconsin
In the state’s most populous city, home prices are up more than 9% from a year ago, a good sign for sellers looking to get the most from their properties in a market feeling a housing shortage. Milwaukee is home to a large number of Fortune 500 companies in industries that include banking, insurance, health care and publishing. According to Zillow, homes here sell for an average of $219,593 and more than half sell for less than the asking price after about 18 days on the market.
Chicago, Illinois
The third-largest city by population in the U.S. behind New York and Los Angeles, Chicago has long been a hub for transportation and the food services. The city’s economy and employment opportunities also center around business and financial services, banking, education, health care and tourism. Homes here list for an average of $315,024, with more than 47% of properties selling for less than the listing price after about 12 days on the market.
How can I buy a home in a hot market?
The key to buying a home in a particularly competitive market is preparedness. It’s important to get your finances in order, and improve your credit score and debt-to-income (DTI) ratio.
You’ll also want to connect with an experienced real estate agent who is familiar with the local market and can help you navigate neighborhoods that might suit your needs and fit your budget.
An up-to-date mortgage pre-approval is also critical when the market is hot and you have to move quickly to secure your purchase.
As a homeowner, how can I take advantage of a hot market?
If you live in a hot market and plan to move, this might be a good time to list your home and put a trusted agent to work to negotiate for as much as you can for your home.
This could also be a good time to make upgrades to your home as increasing values will boost the equity in your home.
A Home Equity Line of Credit (HELOC) could allow you to tap into the value of your home to make upgrades or repairs you’ve been putting off.
Because your HELOC will be largely based on your home equity, lenders will check home values, income, debt and credit score to determine the amount of money you can borrow. In some cases, you might be approved for a HELOC with a combined loan-to-value (CLTV) ratio as high as 95%.
Are you ready to see what you could borrow for a home in a hot market? Get pre-approved with OriginPoint now and get started on the path to buying your dream home!
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