U.S. real estate markets are strong right now, but a handful of cities are on fire, with rapidly rising home prices and short sale windows.
A new report by GoBankingRates ranks America’s 30 hottest housing markets by the average number of days a home stays on the market, based on Zillow data from 2017 and 2018.
Researchers said that rising home prices tend to reflect shifting dynamics in a city – often signalling growing employment, rising wages or other factors. However some markets can get ‘overheated’ – when list prices significantly exceed median home values.
A cluster (eight) of those super-hot markets are in California, and many more are in the American West and Southwest.
Sunnyvale, California had the hottest market in America, with the average home selling in 38 days and a median list price of $1.5 million – the highest of any market on the list. The Silicon Valley community has seen home prices soar 23.7 percent in two years.
San Jose, California ranked second, with homes sitting on the market a short 42 days, on average. The median list price for homes in the Bay Area community is $929,000, with home prices rising 24.7 percent since the beginning of 2017.
Fremont, California – nestled between Silicon Valley and San Francisco – has a 43 day average window for houses to sit on the market before selling. The median listing price is just over $1 million.
San Francisco follows, also with a 43 day window on sales. The city is one of three on the list with a median home price above $1 million ($1.2 million).
Oakland, California, ranked fifth on the list, with median list prices of $650,000 on homes that sell in an average of 44 days.
Seattle is the first city outside of California on the list. Homes there sell in an average of 44 days and the median list price is $678,265.
Newark, New Jersey comes in seventh on the list, with a 45-day average window before a home is sold in that market. The median list price in Newark is $249,450 – and home values have risen 53 percent over two years, likely due to the city’s proximity to New York City.
Boise, Idaho ranked eight on the list, with a 47-day window for homes to sell. The median list price is $330,000 – highly affordable compared to most other cities on the list. Prices in Boise are up 32.8 percent over the past two years.
Arlington, Texas followed, in ninth place, with a median list price of $249,900 – up 21.9 percent compared to two years ago. Homes there sit on the market for an average of 47 days.
Colorado Springs, Colorado rounds out the top 10, with homes typically staying on the market 48 days before selling, and a median list price of $319,000. Prices are nearly 50 percent lower in Colorado Springs than in nearby Denver, which could be driving the market’s growth.
Aurora, Colorado ranked eleventh on the list, with a median listing price of $359,450. Homes are on the market for an average 48 days before selling.
Denver follows, with a median list price of $469,000 and an average 50-day window before homes are sold.
Mesa, Arizona ranked thirteenth, with a median list price of $260,000. Homes typically sell in 51 days in this Phoenix suburb.
Gilbert, Arizon, also outside of Phoenix, came in fourteenth, with a $340,000 median list price. Homes sit on the market an average 51 days in this city.
Rounding out the top 15 was Raleigh, North Carolina, a city where list prices (with a median of $330,000) are more than 21 percent above the current median home value of $271,700.