23 Hot Real Estate Markets of 2023
June 14, 2022
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Hot real estate markets are the norm today, or at least that's what it feels like. With price appreciation increasing at alarming rates, pricing 'normal buyers' out of the equation, it's important to know where the hottest real estate markets are today so you know where to either invest your money or avoid if you're trying to keep your housing costs down.
What a "Hot" Housing Market Mean
Hot real estate markets mean there are more buyers than there are homes available. It's also known as the seller's market. The hottest housing markets have much greater demand than supply, which often causes real estate housing market and US housing prices to skyrocket and not just because home values have increased.
In a hot house market, sellers have the upper hand, often referred to as a sellers market. Another term for it is seller's market because the sellers have their say in who they choose to buy their house. They can have much more say in terms of the sale, including requesting appraisal or inspection waivers.
Factors That Lead to Real Estate Market Growth
Many factors affect median home prices and real estate market growth, but these four factors are the leaders in what the market does or doesn't do.
- Supply and demand
As we saw through the pandemic, as the demand for housing grew, but the supply remained stagnant or even decreased, home prices grew even faster. Buyers were willing to pay whatever it took to buy a house, and sellers were willing to accept it.
- Interest rates
High-interest rates cause real estate markets to slow down because it makes it harder to purchase a home. Lower interest rates, though, cause the real estate market to grow faster. With low-interest rates, more people can afford to buy a home, so the demand increases.
- Stock market
You might wonder how the stock market would play a role in the current housing market, but it does both directly and indirectly. When the market performs poorly, the housing market often follows suit. But what also happens is investors in the stock market who are suddenly losing money become unable to afford homes, so the housing market falls.
- Funds availability
The mortgage industry's requirements change with the economic growth or decline. If the economy suffers, mortgage lenders tighten their restrictions, making it harder to get financing. But when the economy is doing well, funds are more readily available, and the real estate industry benefits.
23 Hottest Real Estate Markets
- Mesa, Arizona
Located just outside of Phoenix, Mesa homeowners get the best of both worlds. You can enjoy the wide-open outdoors in Mesa while driving a short distance to the big city life of Phoenix, AZ.
Mesa homes sell for 27% more today than one year ago, with an average of 19 days on the market. 59% of its homes sell for over the listing price, and the area is considered 'very competitive' today.
- Salt Lake City, Utah
Salt Lake City has long been a highly sought-after area for business people as its business growth has been off the charts and not just since the pandemic. The pandemic drew more attention to the area, encouraging more people to become a part of the population growth in the area to enjoy the booming business life and the relaxed lifestyle.
Salt Lake City homes are on the market for a mere seven days on average and currently sell for 20% more today than one year ago.
- Phoenix, Arizona
Phoenix, Arizona has the nickname 'mini Silicon Valley' and is a hot spot for those in the technology industry. With more companies eyeing Phoenix as their new home, the population growth is bound to continue.
Homes in Phoenix are on the market for an average of 20 days and have a median selling price of $460,000, 27% more than last year.
- Raleigh, North Carolina
Raleigh has something for everyone, and it seems like everyone wants a part of it. Most homes in the area sell for 7% more than their list price because buyers want to be a part of the business and community life offered here.
The weather in Raleigh is always comfortable, yet residents get to enjoy all four seasons. Most homes are on the market for 19 days or less, and housing market prices are up 26% over last year.
- Indianapolis, Indiana
While known for sports, there's much more to love in Indianapolis, IN, including the booming economy with over 800,000 residents. Indianapolis has something for everyone and has had almost a 10% population growth in the last ten years.
Indianapolis has one of the shortest days on the market, with homes selling in as little as four days. Just about 2% of homes sell higher than the listing price, but the job growth in the area continues to be robust.
- Boston, Massachusetts
Boston is one of those cities that people always come back to. Families that moved away come back to be with their loved ones, and people who never lived there are also curious. With amazing schools and plenty of biotech companies to work at, it's no wonder Boston is a part of the hottest housing markets.
Homes do sit on the market for an average of 20 days, so they are not selling quite as fast as other areas, but housing prices are up almost 10% from last year.
- San Diego, California
San Diego is a hot spot for millennials but with a high average sales price of $925,000. The gorgeous year-round weather and robust job market bring more people to the area every year despite its high cost of living.
Homes are on the market for merely eight days in San Diego, and hot homes sell for more than 12% over the asking price.
- Austin, Texas
It's no wonder Austin is an attractive market, thanks to Google and Tesla hosting their headquarters there. However, the number of homes sold in Austin fell since last year, and the average home takes 26 days to sell, but the average home sells for more than 7% over the asking price.
- Las Vegas, Nevada
Las Vegas almost speaks for itself. The median price is only $435,000, and houses stay on the market for only 15 days. The area is filled not only with casinos and bustling nightlife but also plenty of outdoor recreation.
If you love master-planned communities, outdoor life, and the ability to have a hopping nightlife anytime you want, Las Vegas has seen a 30% price appreciation increase year over year, making it an excellent place for living or real estate investing.
- Bakersfield, California
If you want the big city life without living in the big city, consider Bakersfield, California. Located just outside of Los Angeles, you can be in the 'big city' in under an hour while enjoying the lower home prices in Bakersfield.
The median selling price is $392,000, and homes stay on the market for only ten days. So most homes in the area sell for just about their property value, maybe slightly over.
- Seattle, Washington
Seattle is a technology hub with big-name businesses, including Microsoft, Apple, and Facebook. With cheaper housing market prices, many companies are moving from California to Seattle, increasing the population growth in the area.
Seattle homes sell for anywhere between 8% - 17% more than the asking price and sit on the market for only six days.
- Tampa, Florida
Tampa is on the list of the hottest real estate markets because of its year-round sun and affordable pricing. It draws many retirees but also young families just starting out. As a result, the housing supply is robust, but homes only sit on the market for seven days before selling.
- San Jose, California
San Jose is another 'mini Silicon Valley' that attracts many technology companies. Admittedly, the cost of living is higher than the national average, but that hasn't slowed down the interest.
The median selling price is $1.5 million, and yet homes sell in as little as five days there. So it's probably not surprising that many homes sell for 14% - 23% more than their home values.
- Atlanta, Georgia
Atlanta is one of those areas where people really want to move to, and anyone who is already there doesn't want to leave. It's one of the hottest housing markets because prices keep increasing with the demand.
With low taxes, beautiful weather, and a low cost of living, it's no wonder the population keeps increasing. Homes here spend about 14 days on the market, and homes sell for just about their property value.
- Aurora, Colorado
You might not think of Colorado when you think of the hottest housing markets, but Aurora is one of those cities people want to move to. The cost of living in the area is high, but so is the average income, especially for those in the healthcare industry.
Homes here sell in as little as four days and for as much as 11% more than the asking price.
- Jacksonville, Florida
Jacksonville is beautiful, filled with water, and has a low cost of living, making it one of the many real estate markets that have become popular overnight. The median price for a home here is just $300,635, and homes take an average of 19 days to sell.
- Charlotte, North Carolina
Charlotte is a hot spot for people in the finance industry as well as those looking for big city life at lower prices. The median home sales price is $430,250, and homes take about two weeks to sell.
Charlotte quickly became part of the 'must live in' housing markets when working from home became the new norm. Its beauty, comfortable weather, and safe living conditions make it a place many people want to live.
- Colorado Springs, Colorado
If you love the thought of living in Denver, but don't want to pay the Denver prices, Colorado Springs offers the next best thing. Just one hour outside Denver, homeowners enjoy quaint outdoor life in suburbia with the big city nearby.
Homes in the area sell fast and for 5% - 9% more than the asking price.
- Albuquerque, New Mexico
Albuquerque has a low cost of living, and its business market continues to grow. Homes here spend 12 days on the market and sell for an average of $326,000. It's an area for people who love the outdoors and sunshine along with an affordable cost of living.
- Nashville, Tennessee
Nashville is the center of Tennessee and promises incredible nightlife for music lovers. With affordable median home prices, the population growth in the area has grown significantly. Nashville is rich in history and low on crime, giving homeowners a lot to look forward to in the area.
The average home price here is $465,000, and homes are on the market for about two weeks.
- Dallas/Fort Worth, Texas
Dallas has quickly become a hot spot for big companies, and the growth isn't expected to slow. Homes here sell for an average of 4% - 11% more than the list price, and are on the market for just about 15 days, selling for $440,000 on average.
- Anaheim, California
It's no surprise Anaheim is part of the hottest real estate markets, thanks to Disneyland and its popular sports teams. As a result, homes in the area appreciated fast and today sell for an average of $872,500. The good news for homebuyers, though, is homes sit on the market for around 24 days.
- Denver, Colorado
Denver has been on the radar for hot real estate markets for a few years, and it grew even more with the pandemic. Housing market prices are up 16% since last year, and homes sell in as little as five days throughout the area. Most homes in Denver sell for 6% - 13% more, thanks to the growth of agriculture and aerospace companies in the area.
What Drives Hot Housing Markets?
Why are houses so expensive right now? Many factors drive hot housing markets, but high demand, low-interest rates, and the availability of funds are key factors. With the onslaught of people working from home, many hot markets have houses selling for much more than the national average today.
What Is a Housing Bubble?
A housing bubble occurs when there's a high surge in demand for houses, which drives the prices up almost too much. The prices continue to increase, but values don't always follow. Eventually, the prices get unaffordable, and the demand decreases, causing the housing bubble to pop and the housing market to suffer.
Where Is the Coldest Real Estate Market 2022?
There are some cold markets right now, including Fort Myers, Florida, and Madison, Wisconsin. Despite both areas being well-known, the percentage of homes in those areas selling for more than the asking price is minimal compared to the hot real estate markets in the country.
The Bottom Line
Today's hot real estate markets are really hot, with houses selling for much more than their value. The housing supply, though, continues to remain low, leading experts to believe the housing bubble and real estate prices will keep growing until demand settles and prices start coming down. Learn more by signing up and visiting our blog.
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