As the housing market prepares for its busiest season of the year, serious buyers are preparing to beat out hundreds of competitors in some of the nation’s hottest housing markets.
Housing demand is reaching new heights on the back of strong economic growth. This intense demand is pushing the national median home price noticeably higher every month, and low housing supply is only amplifying the trend.
- San Francisco held the #1 spot for another consecutive month in February
- California claimed 13 of the top 20 hottest housing markets
- Texas, Colorado, Ohio, Washington, and Indiana claimed the remaining seven hottest markets
Coming out of their winter doldrums, listing prices have begun their traditional spring climb and quickly reclaimed historical highs, hitting a median $275,000—which was last summer’s peak. This indicates that we’ll probably see an even higher peak this spring and summer, the prime season for buying and selling homes. Listing prices also increased 10% compared with February 2017.
“Rapid mortgage rate jumps, and confirmation of a brighter economic outlook have inflated the pool of home buyers early in the year, putting an extra squeeze on the mid- and entry-level market,” said Javier Vivas, director of economic research at realtor.com.
The persistent problem is an insufficient supply of homes for sale. While housing inventory grew 2% from January, it was down 8% from the February before.
“A second wind in demand has extinguished weak bursts of new construction and new listings, putting a larger than expected dent on inventory,” Vivas noted. “While fewer markets are seeing inventory get worse this month, many others have seen the listings shortage intensify even further.”
Here are the top 20 real estate markets for February 2018:
|Rank (February)||20 Hottest Markets||Rank (January)||Rank Change|
|1||San Francisco, CA||1||0|
|4||San Jose, CA||2||-2|
|7||Santa Rosa, CA||7||0|
|8||Colorado Springs, CO||4||-4|
|9||San Diego, CA||6||-3|
|11||Santa Cruz, CA||18||7|
|19||Fort Wayne, IN||28||9|
|20||Los Angeles, CA||14||-6|
View the original article at realtor.com