Northeast and Midwest dominate Realtor.com's hottest housing markets list

America’s housing market has experienced sluggishness due to high interest rates, but two regions are defying this trend. The Northeast and Midwest have been consistently represented in the top 20 of Realtor.com's Hottest Housing Markets list for the past 11 months.

Both regions continue to attract homebuyers, with demand in the top 20—measured by views per property—being 2.5 times the national level in August. Prices in these areas also climbed 3.3% year over year, despite a national decline of 1.3%.

“The Midwest and Northeast metros have dominated the list since February 2022,” said Realtor.com senior economic research analyst Hannah Jones.

Manchester, NH, ranked as the country’s hottest housing market in August for a record-breaking 29th time. The median home price in Manchester is $550,000, and its proximity to Boston (55 miles away) where the median price is $834,500 adds to its appeal. Listings in Manchester received 3.3 times more views than the national average.

“High demand is met with low inventory as buyers claim available homes,” noted Jones. “This dynamic has kept time on market quick and competition fierce.” New Hampshire's lack of state income or sales tax further benefits buyers.

Oshkosh, WI ranked second on the list with listings receiving three times more views than the national average in August; a typical home costs $330,000 there. Wisconsin had five metros in the top 20: Oshkosh (No. 2), La Crosse (No.10), Racine (No.12), Janesville (No.18), and Milwaukee (No.19). The state's low cost of living and proximity to major cities like Chicago and Minneapolis contribute to its attractiveness.

Rockford, IL was third on the list; houses there spent a median of just 25 days on the market—28 fewer days than the national average—with a median list price of $215,000 compared to the national median of $429,990.

Springfield, MA and Concord, NH rounded out the top five markets.

Newcomers to August's top 20 included La Crosse, MN; Erie, PA; Columbus, OH; Dayton, OH; Milwaukee; Lancaster, PA; and Toledo, OH.

The most significant gains were seen by Sioux Falls, SD (up by 96 spots), Bloomington, IL (87 spots hotter), and St. Cloud MN (83 spots hotter). Conversely, Albany GA dropped by 153 spots while Mobile AL fell by 109 spots.

Homes in these hot markets sold quickly—spending an average of just 32 days on the market in August—which matched last year's pace but was about three weeks faster than the national median.

Larger markets remained relatively flat compared to last year with prices falling an average of 1.5%. Las Vegas improved significantly among large metros followed by Philadelphia New York City Pittsburgh Kansas City MO

Jones commented that larger markets are adjusting to subdued buyer demand by lowering home prices and selling lower-priced homes.