The housing market is cooling amid a sharp rise in interest rates, but some Sun Belt metros are still seeing red-hot home sales and strong demand from local buyers. A recent Bankrate report revealed that the five hottest housing markets in the U.S. are all in the South, where comparatively affordable prices are attractive to out-of-state buyers coming from more expensive parts of the country, MarketWatch reports.
Gainesville, Ga., had the strongest home values and some of the nation’s fastest home sales in May 2023 with a median home price of $520,345. Securing the second and third spots on the list of the nation’s hottest housing markets were Knoxville, Tenn., and Cape-Coral, Fla., where buyers were drawn to sunny weather, strong local economies, and relatively affordable home prices.
“The momentum in the housing market has shifted to the Sun Belt, and especially to Georgia, the Carolinas and Florida,” Jeff Ostrowski, an analyst at Bankrate, said in the report.
“While many parts of the U.S. are experiencing price declines, home values have held steady in the Southeast. This region’s comparatively affordable prices are attractive to buyers moving in from more expensive parts of the country, but the still-strong values create challenges for first-time buyers,” he added.