In an effort to combat the ongoing inflation crisis, the Federal Reserve raised interests rates by 25 basis points in July 2023, marking the eleventh rate hike in less than two years. When interest rates rise, mortgage rates tend to follow, and borrowing costs for home buyers are now at their highest level in over two decades.
With the average 30-year fixed mortgage rate at 7.5%, the red-hot U.S. housing market is beginning to cool. Existing home sales were down over 15% in August 2023 compared to the previous year, according to the National Association of Realtors, while the median home sale price fell over 13% in the first half of 2023, according to government data.
Still, a number of American cities are breaking from the broader trend. In these places, most homes are sold within only a few weeks and demand among homebuyers is surging.
Using data from Realtor.com, a real estate market website, 24/7 Wall St. identified America’s 30 hottest housing markets. Metro areas are ranked by their Market Hotness Index score, a proprietary measure from Realtor.com that takes into account how long homes are on the market for as well as several measures of supply and demand dynamics. All data is for April 2023.
The vast majority of the metro areas on this list are in the Midwest and the Northeast, including four in Wisconsin alone and 12 in the New England region.
As might be expected, because of the rising demand in these places, home prices are also on the rise. Two-thirds of the metro areas on this list have reported a month-over-month increase in median list price, and in all but one, the typical list price is higher now than it was a year ago. (This American city has run out of homes for sale.)
Despite the rising prices in these places, in many the housing is still relatively affordable, which may be contributing to the increase in demand. According to calculations provided by Realtor.com, the median list price in 21 of the 30 hottest metro areas is lower than the national median by anywhere from about 2% to over 60%. (Here is a look at the cheapest city to buy a home in your state.)
Click here to see America’s hottest housing markets.
Source: Public Domain / Wikimedia Commons
30. Oshkosh-Neenah, WI
> Hotness index score: 84.8 out of 100
> Time a house typically spends on the market: 36.5 days
> Median list price: $299,950 (31.8% less than national avg.)
> Change in median list price: -9.7% month-over-month; +2.1% year-over-year
> Total homes on the market: 311
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28. La Crosse-Onalaska, WI-MN — tied
> Hotness index score: 85.1 out of 100
> Time a house typically spends on the market: 31 days
> Median list price: $339,900 (22.7% less than national avg.)
> Change in median list price: -5.6% month-over-month; +3.2% year-over-year
> Total homes on the market: 289
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Source: Sean Pavone / iStock via Getty Images
28. Milwaukee-Waukesha, WI — tied
> Hotness index score: 85.1 out of 100
> Time a house typically spends on the market: 29 days
> Median list price: $374,900 (14.8% less than national avg.)
> Change in median list price: +2.7% month-over-month; +16.3% year-over-year
> Total homes on the market: 2,774
Source: ghornephoto / iStock via Getty Images
27. Peoria, IL
> Hotness index score: 85.3 out of 100
> Time a house typically spends on the market: 33 days
> Median list price: $159,900 (63.7% less than national avg.)
> Change in median list price: +6.7% month-over-month; +16.8% year-over-year
> Total homes on the market: 949
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26. Providence-Warwick, RI-MA
> Hotness index score: 85.6 out of 100
> Time a house typically spends on the market: 33 days
> Median list price: $525,000 (19.3% more than national avg.)
> Change in median list price: -0.9% month-over-month; +11.1% year-over-year
> Total homes on the market: 2,843
Source: Davel5957 / iStock via Getty Images
25. Toledo, OH
> Hotness index score: 86.1 out of 100
> Time a house typically spends on the market: 31 days
> Median list price: $225,000 (48.9% less than national avg.)
> Change in median list price: +4.7% month-over-month; +22.0% year-over-year
> Total homes on the market: 1,494
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Source: Public Domain / Wikimedia Commons
24. South Bend-Mishawaka, IN-MI
> Hotness index score: 86.5 out of 100
> Time a house typically spends on the market: 28 days
> Median list price: $299,450 (31.9% less than national avg.)
> Change in median list price: -0.2% month-over-month; -1.8% year-over-year
> Total homes on the market: 487
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23. Norwich-New London, CT
> Hotness index score: 87.3 out of 100
> Time a house typically spends on the market: 35 days
> Median list price: $499,900 (13.6% more than national avg.)
> Change in median list price: +0.1% month-over-month; +25.0% year-over-year
> Total homes on the market: 705
Source: DenisTangneyJr / iStock via Getty Images
22. Jefferson City, MO
> Hotness index score: 87.5 out of 100
> Time a house typically spends on the market: 30 days
> Median list price: $289,900 (34.1% less than national avg.)
> Change in median list price: +4.7% month-over-month; +26.1% year-over-year
> Total homes on the market: 277
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Source: Public Domain / Wikimedia Commons
21. Lansing-East Lansing, MI
> Hotness index score: 87.5 out of 100
> Time a house typically spends on the market: 29 days
> Median list price: $219,900 (50.0% less than national avg.)
> Change in median list price: -4.3% month-over-month; +10.3% year-over-year
> Total homes on the market: 978
Source: SeanPavonePhoto / Getty Images
20. Bridgeport-Stamford-Norwalk, CT
> Hotness index score: 89.6 out of 100
> Time a house typically spends on the market: 31 days
> Median list price: $1,100,000 (150.1% more than national avg.)
> Change in median list price: -5.1% month-over-month; +30.3% year-over-year
> Total homes on the market: 2,702
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Source: DenisTangneyJr / iStock via Getty Images
19. Johnson City, TN
> Hotness index score: 90.1 out of 100
> Time a house typically spends on the market: 33 days
> Median list price: $429,450 (2.4% less than national avg.)
> Change in median list price: +4.7% month-over-month; +22.7% year-over-year
> Total homes on the market: 488
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Source: Nicholas Smith / iStock via Getty Images
18. Dayton-Kettering, OH
> Hotness index score: 90.3 out of 100
> Time a house typically spends on the market: 30 days
> Median list price: $230,000 (47.7% less than national avg.)
> Change in median list price: -4.2% month-over-month; +12.2% year-over-year
> Total homes on the market: 1,841
Source: Public Domain / Wikimedia Commons
16. Allentown-Bethlehem-Easton, PA-NJ — tied
> Hotness index score: 90.3 out of 100
> Time a house typically spends on the market: 28 days
> Median list price: $383,500 (12.8% less than national avg.)
> Change in median list price: +1.2% month-over-month; +9.6% year-over-year
> Total homes on the market: 1,240
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Source: DenisTangneyJr / iStock via Getty Images
16. Appleton, WI — tied
> Hotness index score: 90.3 out of 100
> Time a house typically spends on the market: 32 days
> Median list price: $392,500 (10.8% less than national avg.)
> Change in median list price: -0.8% month-over-month; +10.7% year-over-year
> Total homes on the market: 406
Source: Davel5957 / iStock via Getty Images
15. Fort Wayne, IN
> Hotness index score: 90.5 out of 100
> Time a house typically spends on the market: 29 days
> Median list price: $347,450 (21.0% less than national avg.)
> Change in median list price: +1.0% month-over-month; +23.0% year-over-year
> Total homes on the market: 451
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Source: DenisTangneyJr / E+ via Getty Images
14. Boston-Cambridge-Newton, MA-NH
> Hotness index score: 90.6 out of 100
> Time a house typically spends on the market: 23 days
> Median list price: $849,948 (93.2% more than national avg.)
> Change in median list price: +1.3% month-over-month; +12.2% year-over-year
> Total homes on the market: 5,196
Source: halbergman / iStock via Getty Images
13. Burlington-South Burlington, VT
> Hotness index score: 92.1 out of 100
> Time a house typically spends on the market: 30 days
> Median list price: $483,125 (9.8% more than national avg.)
> Change in median list price: +2.3% month-over-month; +10.3% year-over-year
> Total homes on the market: 233
Source: DenisTangneyJr / iStock via Getty Images
12. Rockford, IL
> Hotness index score: 93.1 out of 100
> Time a house typically spends on the market: 29 days
> Median list price: $212,900 (51.6% less than national avg.)
> Change in median list price: +18.3% month-over-month; +19.3% year-over-year
> Total homes on the market: 645
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Source: William Reagan / iStock via Getty Images
11. Eau Claire, WI
> Hotness index score: 95.5 out of 100
> Time a house typically spends on the market: 24 days
> Median list price: $375,000 (14.8% less than national avg.)
> Change in median list price: +8.1% month-over-month; +12.5% year-over-year
> Total homes on the market: 314
Source: Jorge Moro / iStock via Getty Images
10. Portland-South Portland, ME
> Hotness index score: 95.8 out of 100
> Time a house typically spends on the market: 29 days
> Median list price: $620,000 (40.9% more than national avg.)
> Change in median list price: -1.4% month-over-month; +16.4% year-over-year
> Total homes on the market: 793
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Source: akrassel / iStock via Getty Images
9. Lafayette-West Lafayette, IN
> Hotness index score: 96.0 out of 100
> Time a house typically spends on the market: 19 days
> Median list price: $367,900 (16.4% less than national avg.)
> Change in median list price: +11.8% month-over-month; +26.9% year-over-year
> Total homes on the market: 151
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Source: DenisTangneyJr / E+ via Getty Images
8. New Haven-Milford, CT
> Hotness index score: 96.7 out of 100
> Time a house typically spends on the market: 26 days
> Median list price: $429,900 (2.3% less than national avg.)
> Change in median list price: +7.5% month-over-month; +20.3% year-over-year
> Total homes on the market: 1,939
Source: SeanPavonePhoto / iStock via Getty Images
7. Worcester, MA-CT
> Hotness index score: 97.0 out of 100
> Time a house typically spends on the market: 19 days
> Median list price: $515,000 (17.1% more than national avg.)
> Change in median list price: +2.0% month-over-month; +9.7% year-over-year
> Total homes on the market: 991
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Source: Sean Pavone / iStock via Getty Images
6. Columbus, OH
> Hotness index score: 97.3 out of 100
> Time a house typically spends on the market: 22 days
> Median list price: $388,900 (11.6% less than national avg.)
> Change in median list price: +1.0% month-over-month; +11.4% year-over-year
> Total homes on the market: 3,466
Source: Sean Pavone / iStock via Getty Images
5. Springfield, MA
> Hotness index score: 97.8 out of 100
> Time a house typically spends on the market: 22 days
> Median list price: $377,450 (14.2% less than national avg.)
> Change in median list price: +2.3% month-over-month; +6.8% year-over-year
> Total homes on the market: 580
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Source: kickstand / iStock via Getty Images
3. Rochester, NY — tied
> Hotness index score: 99.0 out of 100
> Time a house typically spends on the market: 16 days
> Median list price: $264,900 (39.8% less than national avg.)
> Change in median list price: +0.0% month-over-month; +19.1% year-over-year
> Total homes on the market: 852
Source: jiawangkun / iStock via Getty Images
3. Concord, NH — tied
> Hotness index score: 99.0 out of 100
> Time a house typically spends on the market: 20 days
> Median list price: $547,400 (24.4% more than national avg.)
> Change in median list price: +4.8% month-over-month; +21.7% year-over-year
> Total homes on the market: 165
Source: SeanPavonePhoto / iStock via Getty Images
2. Hartford-East Hartford-Middletown, CT
> Hotness index score: 99.2 out of 100
> Time a house typically spends on the market: 21.5 days
> Median list price: $419,950 (4.5% less than national avg.)
> Change in median list price: +5.0% month-over-month; +15.9% year-over-year
> Total homes on the market: 2,457
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Source: Sean Pavone / iStock via Getty Images
1. Manchester-Nashua, NH
> Hotness index score: 99.8 out of 100
> Time a house typically spends on the market: 12 days
> Median list price: $541,950 (23.2% more than national avg.)
> Change in median list price: +1.8% month-over-month; +21.9% year-over-year
> Total homes on the market: 451
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