T
he US housing market continues to be a mixed bag, with national home prices dipping slightly in September but some areas experiencing intense heat. Realtor.com's "Market Hotness" ranking combines demand and sales pace to identify the hottest markets.

    This month, the Northeast and Midwest regions dominated the top 20, following a significant pattern from the past year. The top spot went to Manchester-Nashua, NH, for the ninth consecutive month, driven by high demand and low supply of homes for sale.

    While national home prices edged down 1% year-over-year, the hottest markets showed moderate growth – around 3.6% on average. Top performers in price growth were Rochester, NY (+13.0%) and Milwaukee-Waukesha, WI (+11.4%). These areas have experienced remarkable price hikes, highlighting the importance of location.

    Inventory remains a problem in hot markets, with significantly fewer homes available compared to pre-pandemic levels. On average, there were 57% fewer homes for sale in September compared to before the pandemic hit, while nationwide it was 23.2%.

    Here are the top 20 hottest housing markets in September 2024:

    1. Manchester-Nashua, NH

     * Hotness Rank: 1

     * Viewers per Property vs US: 3.4

     * Median Days On Market: 25

     * Median Listing Price (If Active): $563,000

    2. Concord, NH

     * Hotness Rank: 2

     * Viewers per Property vs US: 3.2

     * Median Days On Market: 31

     * Median Listing Price (If Active): $552,000

    3. Rockford, IL

     * Hotness Rank: 3

     * Viewers per Property vs US: 3

     * Median Days On Market: 29

     * Median Listing Price (If Active): $223,000

    Some markets are gaining popularity, while others are cooling down. For example, Sioux Falls, SD, Bloomington, IL, and Poughkeepsie-Newburgh-Middletown, NY saw major jumps in their rankings, suggesting rising interest from buyers.

    The housing market is complex, and national trends don't always tell the whole story. Buyers should be prepared for more competition in areas with high demand, while sellers need to be ready for intense market conditions. Lower mortgage rates are making homes slightly more affordable, but many homeowners are "locked in" with their low rates, so a massive surge in demand is unlikely.