The government’s hot phase in housing is over

California has long been a desirable place to live, blessed with gorgeous weather, a busy job market, beaches and natural beauty that make it a true paradise. Year after year, it has held most of the nation’s hottest housing markets. But now it seems America’s torrid, long-running West Coast real estate love affair may finally be ending.

That’s according to the Realtor.com® 20 Hottest Markets rankings for April, which take into account a combination of demand (measured by the number of unique views per listing) and property selling velocity (measured by the number of days on the market). For the first time in the history of this monthly ranking, which began in 2016, California has fallen behind from the list and is nowhere to be found.

It’s hard to imagine that just four months earlier, in January, California was still pretty with five subways in the top 20 hottest markets. (Subways include downtown and surrounding suburbs, cities, and smaller urban areas.) Fast-forward to March, and that number had dwindled to just two subways; By April, California fell out of the rankings entirely.

How did the Golden State lose so much of its luster so quickly?

Why California isn’t the hottest place to live anymore

While California dreamers have grappled with exorbitant home prices for years, it seems at least some homebuyers have reached a breaking point. Caught between the harsh reality of rising mortgage rates (now over 5%) and inflation gnawing at their paychecks, many are looking for a new kind of paradise – a place where they don’t have to fret about paying the bills.

“The last two years of [COVID-19] The pandemic has led to an increase in the number of people migrating from the Golden State, driven by high real estate prices and increased cost of living,” says George Ratiu, manager of economic research for Realtor.com. “Families are paying more for groceries, gas, clothing, day care and other services while their paychecks are not keeping pace with inflation. Additionally, housing costs have increased at double-digit rates over the past year, putting further pressure on budgets.”

While moving into and into a new state is never easy, the rise of remote work has given many the extra leeway they need to take the plunge.

“These rising costs lead to difficult decisions,” says Ratiu. “For many people, the alternative to this pressure was to find housing by moving to cheaper cities with more affordable housing options.”

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Watch: Do you know the new rules for home buying in today’s crazy market?

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Why the west coasts are moving east

So if California isn’t a hot place to live anymore, then what is? It turns out that homebuyers are heading east where more affordable homes lie in wait.

The city of Manchester, NH, New England was the No. 1 hottest market in April (and for the 10th time last year), followed by nearby Concord, NH at No. 2 and Burlington, NC at No. 3.

“Since the pandemic, we’ve seen an influx of out-of-state buyers who are now working full-time from home and are finding their dollar goes a lot further in New Hampshire than they do in their current state, plus the added bonus of there being no state.” there is income tax or sales tax,” says Makler Adam GaudetPresident of the New Hampshire Association of Realtors.

As low home prices dominated April’s hottest markets, keep in mind what we’re talking about relative Affordability for a specific area. In Manchester, for example, home prices average $449,900, or $24,000 above the national median of $425,000. Still, prices in Manchester are much lower than the average price of $759,000 in Boston, which is two hours away.

Overall, America’s 20 Hottest Markets in April are a surprisingly affordable lot, with an average list price of $376,000 — 12% lower than the national median and 24% lower than the March average.

Rochester, NY claimed the cheapest subway title on the April list with an average home price of just $200,000.

How quickly do real estate deals close these days?

But homebuyers hoping to snag an affordable home in one of these hottest markets need to hurry.

In fact, entries in these top 20 rankings spent an average of just 16 days on the market — less than half the 34 days nationally. In Manchester, houses sat for a mere eight days before he’s caught.

“Open days are still busy and offers with exact prices are receiving multiple offers,” says Gaudet of the Manchester market. “Since the rate hike, the number of offers a property receives has gone down. At one point we saw 12 to 20 listings for a property; now it’s closer to four to eight.”

Nonetheless, this pace is unlikely to slow anytime soon.

“We are moving towards a post-pandemic reality, which may result in changes in buyer desires,” adds Ratiu. “However, affordability will remain a key focus for buyers in the coming months.”

The hottest real estate markets in April

The hottest metros Hotness rank Mean market days Mid list price
Manchester, NH 1 8th $449,900
Eintracht, NH 2 14 $439,000
Burlington, NC 3 13 $360,000
Portland, ME 4 fifteen $525,000
Elkhart, IN 5 11 $249,900
LaCrosse, WI 6 16 $340,000
Burlington, VT 7 17 $433,000
Worcester, MA 8th 14 $449,000
Rochester, New York 9 10 $199,999
Springfield, MA 10 17 $355,000
Columbus, OH 11 13 $325,000
Kingsport, Tennessee 12 24 $289,000
Settlements, MT 13 22 $523,000
Raleigh, NC 14 9 $475,000
Hartford, CN fifteen 20 $349,999
Johnson City, TN 16 25 $364,900
Greenville, NC 17 24 $278,000
Colombia, MO 18 fifteen $349,000
Fort Wayne, IN 19 24 $270,000
Durham, NC 20 16 $495,000

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