Bankrate: Hottest Housing Markets Shifting

(Charleston, S.C., courtesy of Sara Free/pexels.com)

Bankrate, New York, found that housing markets that were very hot just a few years ago are now cooling off. Momentum has shifted toward Rust Belt and New England metros, from the pandemic-era Sun Belt popularity.

In the five hottest housing markets, home prices have appreciated by at least 9% over the past year.

The top hottest market is New Haven-Milford, Conn., up from No. 82 in 2023. It topped the list for home appreciation.

Next was Rockford, Ill., up from No. 196 in 2023.

Back to the Constitution State, Norwich-New London, Conn., is No. 3, up from No. 54 in 2023.

Charleston-North Charleston, S.C., was the only Sun Belt metro to crack the top five. Rounding out the top of the list was York-Hanover, Pa., which ranked No. 79 in 2023.

Four of those five markets were priced lower than May’s national median of $441,000.

The hottest large markets were Hartford-East Hartford-Middletown, Conn.; Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.; Columbus, Ohio; New York-Newark-Jersey City, N.Y., N.J., Pa., and Detroit-Warren-Dearborn, Mich.

In contrast, the five coldest markets are along the Sun Belt. The region saw a surge in sales and incoming people during the pandemic, pushing home prices up. That’s now being corrected by inventory growth (after significant construction), slower population growth and lower buyer demand, Bankrate says.

The five coldest markets are Cape Coral-Fort Myers, Fla., Punta Gorda, Fla., North Port-Sarasota-Bradenton, Fla., Shreveport-Bossier City, La., and Naples-Marco Island, Fla.

The coldest large markets were New Orleans-Metairie, La.; Memphis, Tenn.-Miss.-Ark.; San Francisco-Oakland-Berkeley, Calif.; Denver-Aurora-Lakewood, Colo., and Tampa-St. Petersburg-Clearwater, Fla.