Smaller cities with lower home prices were once again among the top-performing housing markets this month, a trend that started emerging in January this year, according to the latest report from realtor.com®.
“We’re seeing more interest in secondary markets,” says Danielle Hale, realtor.com®’s chief economist. “Homes are a little bit more affordable, and buyers are looking for that affordability.”
Midland, Texas, once again topped realtor.com®’s list as the hottest housing market this month, based on which markets are seeing some of the fastest sales and garnering the most views online. Markets like Spokane, Wash., which came in at number four on the list, are also showing a trend of a nearby affordable alternatives to pricier markets like Seattle. In Colorado, Colorado Springs (number 3) and Pueblo (number 14) also are serving as alternatives to pricier Denver. Santa Cruz, Calif., also made the top 20 at number 19, proving a growing alternative to the more expensive San Francisco market.
“Affordable markets will continue to improve in the months ahead, so that’s likely to favor markets in the South and Midwest,” Hale says.
However, California markets continue to dominate on realtor.com®’s list. But the Golden State is seeing a noticeable slowdown in price growth and market activity in many of its cities. In Santa Cruz, for example, homes lingered on the market 25 days longer last month compared to a year earlier, and homes were taking eight days longer to sell in San Francisco.
The 20 hottest markets in February, according to realtor.com®, were:
- Midland, Texas
- Chico, Calif.
- Colorado Springs, Colo.
- Spokane, Wash.
- San Francisco
- Sacramento, Calif.
- Yuba City, Calif.
- Rochester, N.Y.
- Columbus, Ohio
- Stockton, Calif.
- Fort Wayne, Ind.
- Modesto, Calif.
- Boston
- Pueblo, Colo.
- Odessa, Texas
- Dallas
- Fresno, Calif.
- Canton, Ohio
- Santa Cruz, Calif.
- Boise City, Idaho
Source: “Which Real Estate Markets Were Hot—or Not—in February 2019?” realtor.com® (March 6, 2019)
