Evidence of spring has finally reached the majority of the country as temperatures rise and flowers start to bloom. Springtime also means real estate markets around the country are going to be kicking into high gear, and, as usual, some are going to be hotter than others.
Realtor.com has just posted its list of the hottest real estate markets in April and, as you might expect, California dominates the list. As you glance at the list and see San Francisco on top and Denver being the only non-California city in the top five, you may think it is business as usual. But there are some interesting things happening a little further down the list.
The Midwest real estate market is beginning to heat up. A region that has lagged behind for quite some time now is starting to show signs of waking from hibernation. Ann Arbor, Mich. (9), Columbus, Ohio (10), Lafayette, Ind. (16), Fort Wayne, Ind. (7), and Sioux City, Iowa (20) all made the list. As Jonathan Smoke, chief economist of realtor.com notes, “The Midwest region is representative of the status of the broader U.S. recovery. When Columbus, Ohio, is the 10th hottest market in the country, you know that the Midwest—and the U.S. overall—is back and doing well.”
Additionally, almost 550,000 new listings arrived on the market in April, helping the total inventory to grow 2 percent over March. Unfortunately, sales are accelerating quickly and the added inventory is still unable to keep up with the increased demand.
From February to March, the median age of inventory dropped 22 days. From March to April, it dropped another six days. Compared to this same time last year, there are 4 percent fewer homes for sale and the average home is selling five days faster.
Smoke attributes what he calls the strongest real estate market we have seen in 10 years to pent-up demand, lower mortgage rates, and strong employment. The houses on realtor.com’s top 20 list received two to three times the number of views on the website compared with the national average. In addition, the inventory in these cities also moves 17 to 45 days more quickly than the rest of the U.S.
To see realtor.com’s full list of the hottest housing markets in April, follow the link below.