Realtor.com recently released its list of the country’s hottest housing markets. To create the list, Realtor.com studied listing searches in each U.S. market along with supply, demand and prices throughout the month of June.
The list revealed a few surprises. For the first time in six years, California markets did not rank in the top five.
“California is not as hot as it was. It’s because of low inventory and median home prices in some areas that are close to a million dollars,” explains Realtor.com’s Chief Economist Danielle Hale. “We are seeing people looking elsewhere to less expensive areas,” Hale adds.
According to a recent report from Forbes, the markets that make the list are the ones that are able to hit three sweet spots—limited supply, strong demand and rising prices. Also significant is the Days on Market figure (Realtor.com refers to it as Median Age of Inventory). This is a key indicator of determining a market’s health. The less time homes spend on the market, the higher demand is in that area. This number averaged only 34 days in Realtor.com’s top 20 markets nationwide.
Here are the top 20 hottest housing markets, according to Realtor.com:
Eight of the top 20 markets were below June’s national median listing price of $299,000.
Potential Amazon HQ2 cities including Columbus, Boston and Dallas all made the list.
Midland, Texas topped the list with a median listing price of $350,000, largely due to the area’s “oil boom” according to Hale. June’s days on market dropped to 29 days. A new listing at $315,000 will buy a two-story 2,075 square foot home with four bedrooms and 3 full bathrooms in a desirable Midland neighborhood, according to Forbes and Realtor.com.
Columbus, Ohio, a possible HQ2 Amazon city, ranked second with 32 days on market. Its attractive median listing price of $250,000 is below the national median listing price of $299,000.
Fort Wayne, Indiana with 34 days on market has a median listing price of $197,711, an increase of over 11% from last June. “Fort Wayne is the lowest priced area on our list,” said Hale.
Considering a Move?
For people thinking of relocating to an area with reasonably-priced homes as well as strong job markets, cultural attractions, educational opportunities and more, several of these markets may be worth considering. Before you make big plans to move however, here are a few tips for buying a new home in a new place:
1.) Find a local realtor.
Buying a home long-distance is a challenge. Be sure you have an experienced real estate professional who can scout out potential listings and view homes for you.
2.) Work with a mortgage lender licensed in your state and get pre-approved.
Mortgage pre-approval is an important step to take once you begin thinking about buying a home. Getting pre-approved for financing helps you understand how much money you’ll be able to borrow and shows home sellers that you’re serious.
If you’re thinking of moving out of state, you’ll want to make sure your mortgage lender is licensed in that state. Working with a lender with national reach such as Mid America Mortgage, Inc., can give you peace of mind knowing that no matter where you are or where you’re moving in the United States, your home loan professional will be able to work with you every step of the way.
3.) Do a little neighborhood research.
Check out online message boards, social media groups, etc. to get the details on prospective neighborhoods in your new area. You can also rely on your real estate agent to give you information on the most popular neighborhoods and communities, as well as which ones are likely to experience higher price growth over time.