The United States’ Northeast and Midwest had the country’s top 20 hottest housing markets in September, according to a Realtor.com report.
The report measures hotness by market demand and market pace, based on unique views of online property listings and the time listings are active. Springfield, Massachusetts held the top spot for a fifth consecutive month.
“High demand and low inventory have driven the larger Boston/New England area to the top of the hot markets list over the past few years as views per property and time on the market outpace the rest of the country,” wrote Realtor.com senior economic research analyst Hannah Jones.
Springfield’s median listing price was US$370,000, below the national median of $425,000.
All housing markets in the top 20 were located in either the Northeast or the Midwest, with Wisconsin featuring the most markets on the list.
In these seven Wisconsin markets, which include Kenosha, Green Bay, and Milwaukee-Waukesha, properties sold an average of 27 days faster than average U.S. listings last month. All Wisconsin markets on the list except Green Bay were also priced below the national median.
Connecticut had the second-most markets on the top 20 list, at four.
The U.S.’ largest 40 markets fell by an average of four spots on the rankings year-over-year. New York City reported the largest improvement, rising 44 places.
For-sale housing inventory rose by 17.0% year-over-year last month, its 23rd consecutive increase, but remains 13.9% below pre-pandemic levels nationally. Inventory particularly lags in the Northeast and Midwest, as the South and West have now exceeded pre-pandemic inventory.
New housing sales were up 20.5% year-over-year in August, per the U.S. Census Bureau. Sales of existing homes were just 1.8% higher than the previous August, however, according to the National Association of Realtors.
“This fall’s more buyer-friendly market is a welcome shift from the summer’s challenging conditions. Easing mortgage, building inventory, and slowing price growth are finally moving in the same direction, offering buyers more options and more affordability,” wrote Jones.
“However, despite recent progress, many buyers continue to grapple with elevated costs. Many of the Northeast and Midwest markets featured on this month’s list have the benefit of being lower-priced relative to the national market or relative to nearby business hubs, which continues to attract buyers.”
