Whether you’re looking to sell your home for a big profit or are looking for the friendliest market for a first-time home buyer, House Method conducted research to rank the hottest (and some of the coldest) housing markets United States – and Phoenix ranks No 2 among the hottest real estate markets in the United States
READ ALSO: The 3 Hottest Neighborhoods in Arizona
The housing market has exploded in recent years due to fluctuating mortgage rates, high demand accompanied by low inventory, as well as remote work opportunities allowing millions of people to redesign their homes. Americans began to rethink their priorities for living space, with many prioritizing space and comfort while others flocked to bustling metropolises, leading to an exponential increase in home ownership.
We analyzed the data of the 100 largest MSAs (Metropolitan Statistical Areas) and ranked them according to seven factors, such as affordability, inventory and population growth. Read on for the full ranking and explanation of the methodology behind this study.
Some of the more interesting findings:
• House prices have increased by a average of 21% since 2021
• The top 10 markets rarely have listings that stay in the market for more than 15 days, 40% less than the national average (25 days).
• Many of the hottest real estate markets are also among the least affordable as demand rises and inventory declines
• Home equity has skyrocketed allowing sellers to make huge profits
• House prices should increase further by 14.9% before 2023even with large increases in mortgage rates
Key Findings on the Hottest Housing Markets
Below are the cities where homes are going off the market the fastest in order of ranking. The table below shows the ranking, total score and ranking for the specific factor category. It’s searchable and sortable, so take a look and see how your city stacked up!
Summary of the hottest housing markets
Our analyzes revealed that Tampa-St. Petersburg-Clearwater, Florida tops the list as the hottest real estate market this year. Homes stay on the market for as little time as possible before selling out, selling at a premium and attracting new residents at a rapid pace. Low inventory combined with a quick sell-out rate contributed to its high score – and it’s important to note that many of the top places rank poorly on affordability.
As these hot housing markets continue to gain momentum, we can assume that affordability will continue to decline. The other 5 first places were completed by:
• Phoenix-Mesa-Scottsdale, Arizona
• Austin-Round Rock, Texas
• Seattle-Tacoma-Bellevue, Washington
• San Jose-Sunnyvale-Santa Clara, California
Jackson, Mississippi, Bridgeport-Stamford-Norwalk, Connecticut, Greensboro-High Point, North Carolina, McAllen-Edinburg-Mission, Texas and Winston-Salem, North Carolina received the lowest rankings for the most housing markets. hot. These markets remain quieter than the top-ranked due to large housing inventory and slower population growth. While still a seller’s market, these MSAs may not soar as quickly as their high-ranking counterparts.
To find the hottest housing markets in 2022, we looked at data from the 100 largest MSAs (Metropolitan Statistical Areas) in the United States. We have classified cities into three categories:
• Population growth
In all, there were 7 factors in these three broad categories which are listed below with their corresponding weights. Each city was scored on an 85-point scale, with a score of 85 representing the hottest housing market.
Finally, we determined each city’s weighted average across all categories to calculate its heat score and used the results to rank our sample.
Affordability — 45 points
• Percentage of change in the price of real estate 2021 compared to 2022: double weighting
• Percentage change in house prices 2012 compared to 2022: total weighting
• Average price per square foot (measured in hundreds): total weight
• Majority of homes available below and above the national average of $428,700 (calculated with the average price of a home and factored into a yes or no report) – Half weight
• Average number of active real estate advertisements per month: 1.5 Weighting
• Average number of days on the market before the pending sale: double weighting
Population growth—5 points
• Percentage Change in Population Growth from 2010 Census to 2020 Census Data – Half Weighting
• World Population Review