America’s real estate market has been “cool” over the past year and a half. With mortgage rates above 6.5% for a 30-year home loan, monthly payments on mid-priced properties nationwide can be more than $1,000 higher than when mortgages were at 3% two years ago. People with those 3% mortgages do not want to sell unless they can do so at a large premium over pre-pandemic prices. There are a few neighborhoods that are exceptions.
24/7 Wall St. Key Points
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America’s real estate market has been “cool” over the past year and a half.
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There are a few neighborhoods that are exceptions.
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Several of those markets on a Redfin list are in and around New York City. That is unexpected because the country’s largest city usually has home prices higher than national figures. The hottest neighborhood is Brooklyn’s Prospect Park/Clinton Hill, near the Brooklyn Bridge.
Realtor.com identified the hottest markets by looking at Zip codes in America’s 150 largest metros. It then used “a measure of how difficult it is to win a home in a particular area based on factors including days on the market, the share of homes that sold above their listing prices and sale-to-list price ratio.” Prospect Park/Clinton Hill ranked first based on this methodology in “Redfin’s Hottest Neighborhoods 2025.”
Another notable statistic about Prospect Park/Clinton Hill is that homes are extremely expensive. The median sales price of a home is $1,397,000.
The second neighborhood on the list has inexpensive homes. Jenison, Michigan, is outside Grand Rapids in the northern part of the state’s lower peninsula. The median sales price for a home is $356,500.
The top 10 hottest markets have a mix of inexpensive and very expensive homes.
The Hottest Markets
These are the 10 hottest markets in the United States and their median sale prices:
- Prospect Heights and Clinton Hill, N.Y.: $1,397,000 (+3.9% YoY)
- Jenison, Mich.: $356,500 (−0.2% YoY)
- Campton Hills and St. Charles, Ill.: $615,000 (+2.9% YoY)
- Fairport, N.Y.: $350,000 (+9.4% YoY)
- Polk Gulch and Russian Hill, Calif.: $1,065,000 (+10% YoY)
- Great Kills, N.Y.: $700,000 (+4.3% YoY)
- Franklin, Wis.: $392,500 (+10.5% YoY)
- Prairie Village and Mission Hills, Kan.: $476,500 (−0.7% YoY)
- Lakeville, Minn.: $495,000 (+2% YoY)
- Bowie, Md.: $512,288 (+2.7% YoY)
Is Now a Good Time to Buy Real Estate — Or Should You Wait Till Fall?
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