Housing Market Surprise: Affordable Northeast and Midwest Cities Emerge as New Hotspots
Staff Editor US Housing Market Shifts: Northeast and Midwest Cities Gain Popularity Amid National Downturn
The US housing market is experiencing a significant shift as home prices declined 2.2% in January compared to the previous year, marking a notable downturn. High mortgage rates, which recently surpassed 7%, have contributed to this slowdown, causing many potential buyers to postpone their purchases in anticipation of more favorable conditions.
Despite this national trend, certain cities are bucking the trend and attracting increased buyer interest. Realtor.com has identified 31 hot housing markets based on listing demand and website traffic, with the majority located in the Northeast and Midwest. This marks a departure from previous trends that favored Southeastern markets.
These popular markets are characterized by homes that sell faster and receive more views than the national average. Demand in these areas has driven prices up by 1.5% in January compared to the previous year, contrasting with the national decline.
Affordability appears to be a key factor driving interest in these markets. Many of the popular cities offer homes at prices below the US median of $400,500. Manchester, New Hampshire, for instance, leads the list with a median home price significantly lower than nearby Boston.
However, inventory in these markets remains low, intensifying competition among buyers. This scarcity is particularly notable given the increased housing inventory in other parts of the country due to a recent construction boom.
The Sun Belt region, previously a hot market, is conspicuously absent from the list of popular cities. This shift is attributed to high prices and increased supply in those areas. In contrast, the Midwest and Northeast continue to attract buyers due to their affordability relative to local incomes.
Among the standout cities, Manchester, Hartford, and Kenosha are highlighted for their high demand and relatively lower prices. These markets offer a combination of affordability and desirability that is proving attractive to buyers in the current economic climate.
As the housing market continues to evolve, these regional shifts highlight the importance of local market conditions in determining housing demand and prices. Buyers and sellers alike will need to stay informed about these changing dynamics as they navigate the complex landscape of the US housing market in 2023.
