California’s domination as the hottest housing state is weakening, as other affordable markets trend up, according to the latest ranking by realtor.com®. California dipped out of the top five markets for the first time in six years, with the Bay Area finishing at No. 6. Close to half of the top 20 markets in the ranking had median values under the median nationally, or $299,000.
June’s five hottest housing markets, based on days on market and online views, were:
- Midland, Texas
Age of Inventory (Median): 29 days
- Columbus, Ohio
Age of Inventory (Median): 32 days
- Boston-Cambridge-Newton, Mass.-N.H.
Age of Inventory (Median): 33 days
- Fort Wayne, Ind.
Age of Inventory (Median): 34 days
- Boise City, Idaho
Age of Inventory (Median): 33 days
MORE: Is California’s Housing Market Too Hot to Handle?
According to Danielle Hale, chief economist at realtor.com, demand is expanding inland, where buyers are meeting more practical prices.
“As the record pace of sales continues to challenge would-be homebuyers, the hottest market rankings show that buyers are looking for markets that offer relative affordability,” says Hale.
There is a what-if: Amazon’s arrival is likely to pressure prices up, Hale says. In Columbus, for example—No. 2 in the ranking—the median is $250,000, which has been consistent for the past year. If Amazon were to bring HQ2 into town, affordability could suffer.
“In the three cities that were on Amazon’s list of possible HQ2 contenders—Columbus, Ohio, Boston and Dallas—affordability isn’t taking as big a hit as in other hot markets, despite properties selling faster than just about everywhere else,” says Hale. “This would change if Amazon were to come to town.”
The remaining in the top 20:
- San Francisco-Oakland-Hayward, Calif.
Age of Inventory (Median): 25 days
- Vallejo-Fairfield, Calif.
Age of Inventory (Median): 30 days
- Buffalo-Cheektowaga-Niagara Falls, N.Y.
Age of Inventory (Median): 36 days
- Colorado Springs, Colo.
Age of Inventory (Median): 30 days
- Detroit-Warren-Dearborn, Mich.
Age of Inventory (Median): 37 days
- Racine, Wis.
Age of Inventory (Median): 38 days
- Grand Rapids-Wyoming, Mich.
Age of Inventory (Median): 31 days
- Sacramento-Roseville-Arden-Arcade, Calif.
Age of Inventory (Median): 35 days
- Rochester, N.Y.
Age of Inventory (Median): 38 days
- Kennewick-Richland, Wash.
Age of Inventory (Median): 38 days
- Stockton-Lodi, Calif.
Age of Inventory (Median): 36 days
- Dallas-Fort Worth-Arlington, Texas
Age of Inventory (Median): 38 days
- Worcester, Mass.-Conn.
Age of Inventory (Median): 38 days
- Spokane-Spokane Valley, Wash.
Age of Inventory (Median): 36 days
- Santa Cruz-Watsonville, Calif.
Age of Inventory (Median): 40 days
For more information, please visit www.realtor.com.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.
