While home prices dipped nationwide in June, the nation’s hottest housing markets all saw modest price growth. The Realtor.com Market Hotness Index breaks down demand and supply by taking into account two aspects of the housing market: market demand, as measured by unique viewers per property on Realtor.com, and the pace of the market, as measured by the number of days a listing remains active on Realtor.com.
Only the Northeast and the Midwest were represented on this month’s hottest market list. The Northeast was represented by 13 markets while the Midwest boasted 7.
According to Realtor.com, 12 of June’s hottest markets had median listing prices below the national median. The lowest-priced market, Rockford, Illinois, had a median listing price of $183,500, almost 60% lower than the country’s June median home listing price of $445,000.
Three-quarters of the markets priced above the national median on this month’s list still offered an aff affordability. The Hartford, Connecticut, metro ranked as Realtor.com’s hottest housing market in June.
Another factor in June’s hottest housing markets is tight inventory conditions. While the annual decline in homes for sale in these regions has been middle-of-the-pack, the number of homes for sale in the Northeast and Midwest was less than half its pre-pandemic norm in June.
Realtor.com notes that the limited options concentrate shoppers and keep housing markets relatively competitive.
According to Realtor.com, the Twin Cities metro area saw the largest increase in its hotness ranking among larger metros compared to last year, climbing 102 spots to rank as the 108th hottest U.S. market in June. In the first quarter of 2023, the Twin Cities received 42.6% of its out-of-metro attention from viewers within the Chicago metro, according to Realtor.com’s cross-market demand data.
Realtor.com notes that though Minneapolis is more expensive, on average, than Chicago, homes in Minneapolis tend to be larger, possibly attracting buyers looking for more space.
advantage relative to nearby metro areas.