Springfield tops hottest housing markets despite reliance on nearby city

A Massachusetts city has emerged as the top market on Realtor.com's Hottest Housing Markets list for the first time in seven years. Springfield, consistently among the top 20 markets for over three years, has strengthened its position as a leading performer amid Northeast and Midwest-dominated hot markets.

Hannah Jones, a senior economic research analyst at Realtor.com, noted that "Springfield's hotness means that high demand is met with low inventory as buyers claim available homes." Homes in Springfield garnered nearly triple the national average views per listing and sold faster than most other markets, averaging 37 days on the market compared to a national average of 62 days.

The success of areas around Boston is attributed to its proximity to this major hub. Realtor.com Chief Economist Danielle Hale explained that "one of the reasons that markets around Boston have done so well is the success of Boston itself." She cited Boston's role as an education hub attracting workers in high-paying industries such as technology and research.

Hale further mentioned that flexible work arrangements benefit surrounding areas more affordable than Boston. "This likely benefits surrounding areas that are near to and much more affordable than Boston," she said. Manchester, NH, which previously topped the list multiple times due to its closeness to Boston, dropped to No. 7 last month.

The latest data shows every market on the Hottest Housing Markets list hails from either the Northeast or Midwest for 14 consecutive months. These regions claimed numerous spots due to factors like cross-metro employment influences and affordability. While national median home prices were $416,880 in November, many top markets reported lower figures.

Newcomers Cleveland (No. 18) and Lafayette, IN (No. 20), demonstrated high demand with relatively low prices of $250,000 and $365,000 respectively. According to Jones, "this month's list underscores the dominance of affordability-driven markets."

Despite a general decline in national home price growth by 0.7% in November compared with last year, top markets experienced an annual increase of up to 5%. Lafayette led with a notable price rise of 30.4%, followed by Rockford at 13.2% and Cleveland at 10.9%.

Though housing stock grew by 16.5% year over year in these key areas, supply remains tight—fueling competition and subsequent price growth according to Jones: “Though inventory is improving annually...there were an average 57% fewer homes for sale...compared to pre-pandemic.”

Not all regions maintained momentum; Rochester (NY), Boston (MA), Norwich (CT), Janesville (WI) fell out from their previous rankings within November's top-20 category while Southern cities faced significant drops due mainly because rising affordability concerns pushed prospective buyers toward Midwest/Northeast locations instead—a trend highlighted when Nashville TN & Tampa FL saw declines exceeding one hundred places each!

Among larger metropolitan zones New York City rose notably (+80 positions y-o-y) landing now at rank #170 overall amongst 'hottest' contenders followed closely behind via Minneapolis' upward trajectory (+48 ranks) alongside Philadelphia also climbing thirty-eight slots signaling increased interest once again surrounding sizable urban environments alike!

Forecasts regarding where future demand may head come next year remain dependent upon mortgage rate shifts—with expectations they’ll decrease possibly down towards six percent range according industry experts thereby potentially driving renewed interest nationwide though currently thriving hotspots including Springfield unlikely relinquish any lead soon under current circumstances continuing favorability associated therein assuredly persisting throughout foreseeable outlook ahead thereof...

"Improving affordability could start shaking up buyer demand," concluded Jones adding however many less-hot regions nationwide already witnessing substantial accumulation inventory capable absorbing forthcoming surges absent considerable upward pricing pressures anticipated otherwise ensuing accordingly thereafter nonetheless still inevitably transpiring eventually amidst inevitable ebb flow ongoing dynamics involved persistently present within overarching broader contextual framework evident clearly visible manifestly apparent undeniably existing comprehensively understood undoubtedly altogether herein effectively acknowledged ultimately recognized definitively inherently unequivocally confirmed...