The hottest real estate markets, May 2021
Homebuyers are scouring the country for more affordable alternatives to expensive big cities as house prices have hit record highs. This is why the country’s hottest real estate markets in May were a mix of small towns from the northeast to the west where buyers’ budgets stretch much further, according to the latest analysis of Realtor.com® data. .
Buyers moved further away from expensive coastal towns, looking for cheaper homes in places most Americans have never heard of.
Metropolitan areas in 15 states make the top 20 list, making them our most geographically diverse hot market lineup. These were the places where buyers could still find deals. Median list prices in the hottest markets were $ 311,000, about 18% below the national median of $ 380,000 in May.
“Most of the markets that get a lot of interest are in the sweet spot. These are mid-sized cities that are more affordable but still close to large urban areas with lots of jobs, ”says the senior economist at Realtor.com. George ratiu. “These markets offer a lot more space with bigger homes on bigger lots, which are a lot better suited because of what buyers want today.”
The Realtor.com Economics Team has ranked the hottest US real estate markets by tracking the metropolitan areas where homes sell fastest and where most potential buyers click realtor listings on Realtor.com. (Subways include the main city and surrounding suburbs, towns and small urban areas.)
For the third month in a row, New Hampshire’s neighboring subways of Manchester and the state capital of Concord retained their top spots on the list. Median house prices on these subways were $ 415,000 and $ 379,000, respectively.
“They’re close to Boston,” Ratiu said. Each was about an hour’s drive (without heavy traffic) from the larger city where homes cost significantly more at an average of $ 699,900 in May. “They offer the combination of no state income tax, no state sales tax and more affordable housing.”
Median list prices rose 3.8% in Manchester in May from the same month a year earlier and rose 8.6% at Concord. Price growth in Manchester has not been so impressive as more and more condos and townhouses have come up for sale as single family homes, which are scarce and get bought up quickly.
Right now, the smaller town of Concord is even more popular with buyers than Manchester, likely due to its lower price range, according to a Manchester-based real estate broker. Pamela Young, of Re / Max Insight.
At the worst of the COVID-19 pandemic, she was seeing many buyers from New York, Massachusetts and Connecticut settling in the area. But recently, more and more locals have jumped into the fray when it comes to buying a home, especially those looking for their first home or hoping to swap into larger mansions.
But the lack of homes to sell, high prices and stiff competition are forcing some buyers to move to more rural areas with longer commutes to work.
“People are starting to go further and further,” she says. “Buyers can get more than one house” for the same price.
It has become a trend nationwide.
Ratiu points out that even the more expensive markets on the list, such as Vallejo, CA, and Colorado Springs, CO, are cheaper alternatives to San Francisco and Denver.
Many other places are where local economies have rebounded, so they can provide residents with the good jobs needed to pay off mortgages.
“There was a decade when people moved to the coast in search of jobs and city life,” says Ratiu. “The pandemic obviously changed that and caused many people to change direction and prioritize quality of life, affordability and bigger homes. “
The hot list
|Subway||Rank||Annual classification change||Median registration price|
|Manchester, New Hampshire||1||+5||$ 415,000|
|Concorde, New Hampshire||2||+17||$ 379,000|
|Burlington, North Carolina||3||+2||$ 275,000|
|Portland, ME||4||+34||$ 458,000|
|Johnson City, Tennessee||5||+43||$ 300,000|
|Rochester, New York||6||+10||$ 245,000|
|Topeka, KS||7||-5||$ 160,000|
|Fort Wayne, IN||8||-8||$ 250,000|
|Columbus, Ohio||9||-6||$ 309,000|
|Jefferson City, Missouri||ten||+31||$ 185,000|
|Lafayette, IN||11||+1||$ 270,000|
|Elkhart, IN||12||+26||$ 180,000|
|Eureka, California||13||+58||$ 430,000|
|Saginaw, Michigan||14||+114||$ 155,000|
|Worcester, MA||15||+6||$ 390,000|
|Vallejo, California||16||-15||$ 550,000|
|Raleigh, North Carolina||17||+88||$ 410,000|
|Root, WI||18||-7||$ 250,000|
|Pottsville, Pennsylvania||19||+124||$ 135,000|
|Colorado Springs, CO||20||-13||$ 481,000|