15 ‘Hottest’ Home Sales Markets Aren’t Where You’d Expect
Jul 13, 2016
What’s the hottest real estate market in the U.S. now? The answer’s not San Francisco or Miami, two cities that can be fraught with runaway housing prices and bidding wars. Denver, Seattle, Portland, Boulder, and Vallejo, California, instead, are the top five hottest markets of 2016, according to Redfin’s analysis of homes that are likely to sell the fastest.
Home prices are just one indication of a neighborhood that’s in high demand. “Hot” homes, according to Redfin, have a 70 percent chance of coming off the market in two weeks. Redfin’s 15 hottest markets have the highest percentage of “hot” homes among its nearly 100 metropolitan data points between January 1 and June 8, 2016.
Although San Francisco didn’t make the top of Redfin’s “hottest” markets list, homes there still tend to sell quickly. The median amount of time to sell in that city is 18 days, according to Redfin’s most recent data from the month of May. Of note, one sought-after market not in the list is New York City, for which Redfin doesn’t have complete data.
Buyers in the most popular markets typically have to act quickly. In Seattle and Portland, the median amount of time it took a seller to find a buyer after the home hit the market in May was seven days, according to Redfin. In Denver, the median amount of time a home was on the market was six days. The national median in May was 42 days.
As with many parts of the nation, low inventory is one of the main drivers heating up these “hot” cities, says Redfin. Many economists consider a housing supply of six months a healthy inventory of homes, which refers to how many months it would take to clear existing homes that are for sale.
Nationally, the housing supply was around 3.2 months in May, says Redfin. But the supply in Seattle was about 1 month, while Denver had 1.2 months and Portland had 1.3 months, according to Redfin.
And if you’re wondering about other hot markets and some that weren’t-so-hot by Redfin’s measure, check out our infographic.
Source: “Denver, Seattle and Portland are the Hottest Housing Markets of 2016,” published on Redfin.com June 9, 2016.
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