T
he US housing market has been sluggish due to rising mortgage rates and high median prices, but some areas are bucking this trend. The top 20 hottest housing markets saw a 2.9% average increase in home prices in October compared to the previous year, with the median-priced home reaching $424,950.
According to Realtor.com's senior economic research analyst Hannah Jones, the surge in home prices is driven by high demand and scarce for-sale inventory. While active listings increased nationally by 29.2% in October, housing stock only rose by 19.7% in the top 20 markets.
Demand in these areas was extremely high, with views per property 2.6 times the national level in October. The Manchester, NH metro area took the top spot for the 10th consecutive month and has been the country's hottest market 31 times since data began.
Manchester's relatively affordable prices compared to nearby Boston make it a perennial favorite among homebuyers. The median home price in Manchester is $572,000, significantly lower than Boston's median of $837,450.
New Hampshire's lack of state income or sales tax also makes it an attractive option for buyers. Jones notes that Manchester has been red-hot since March 2021 and its listings received 3.5 times more views in October than the national average.
The Northeast and Midwest regions continue to dominate the hottest markets rankings, with Connecticut having four metros on the list and Ohio having three. The most improved large market was the New York-Newark-Jersey City area, which rose 88 spots to No. 164.
Nearby Pennsylvania also saw desirable homebuyers in October, with Philadelphia climbing 49 spots and Pittsburgh rising 44 spots. The mighty Midwest shared the month's fastest-climbing market with New York/New Jersey, with Detroit ranked No. 56, climbing 35 spots.
In contrast, pandemic boomtowns like Tampa, FL, and Asheville, NC, have seen a decline in popularity, falling from the top 20 to the top 200. However, these areas are still recovering from recent hurricanes and rebuilding efforts.
