Realtor.com®'s June roundup of the hottest real estate markets is proof of that. This month, the Hartford, CT metro area topped the list, followed by the stalwarts of the hottest markets - Manchester, NH and Concord, NH.
To make the "Hottest" list, a metro area must have higher page views and faster sales on Realtor.com than the rest of the country.
June's list focuses on cities in the Northeast and Midwest, where buyers can find lower prices than in much of the rest of the U.S.-especially after a wild couple of years when buyers flocked to the South and West.
"Affordability continues to be the most important factor," said Hannah Jones, an economic data analyst for Realtor.com. This is especially true with mortgage rates approaching 7 percent, stretching the budgets of many would-be homebuyers.
"Jones added: "We've also found that many homeowners are not interested in selling their homes as their current mortgage rates are below market rates." That means many listings are out of the price range for many buyers.
In June, the median home price in the Hartford metro area was $429,000, below the $445,000 national median. Real estate prices in Hartford, Connecticut's capital, are much lower than New York City, about 2.5 hours southwest, where the median listing price was $749,000 in June, according to Realtor.com. It's also much less expensive than Boston, which is about a 90-minute drive northeast without traffic. The median list price in the Boston metro area was about $864,000 in June.
Prices in Manchester and Concord were both higher than in Hartford, at $521,000 and $565,000, respectively. Still, both areas are more affordable than the pricey Boston metro area.
"At a certain point in a densely populated city like Boston," Jones said, "you run into capacity issues, and it's hard to keep expanding and bringing in more people." That's not feasible for many residents, so they look elsewhere for more cost-effective places."
That's what draws them to the hottest (and often more affordable) markets in the US.
Four of the 20 hottest markets in June were in Connecticut, including Norwich, New Haven, Bridgeport and, of course, Hartford. Hartford-area realtor Lisa Barall-Matt, a broker with Berkshire Hathaway HomeServices, said many people who moved to Hartford during the COVID-19 pandemic because of cheaper prices are now traveling commute to offices in the New York City and Boston areas twice a week.
House hunters are attracted not only by the lower prices, but also by the lifestyle.
"They're looking for a place to raise a family," she says." Younger buyers are looking for a place where they can walk to downtown, dine outdoors, meet with friends and have lovely parks to go to. We have beautiful beaches and lakes and a variety of nice outdoor places. This includes the Atlantic Ocean, multiple state and national forests and parks, all within an hour's drive.
Hartford also has a large number of employment opportunities, including serving as the state capital and unofficial center of the insurance industry, with companies such as Aetna, The Travelers Companies and Synchrony Financial all having offices in Hartford.
Barall-Matt says she has recently helped buyers from California, Florida and Alabama relocate here.
Something to keep in mind: the number of homes for sale remains low. As a result, all the demand has made market conditions as frantic as they were at the height of the pandemic. Recently, one of her buyers got into a bidding war with 36 other buyers and, despite bidding $45,000 over asking, ultimately lost out to the higher bidder.
In June, Hartford-area homes stayed on the market for just 18 days, less than half the national median.
It's anyone's guess how long these "hottest" metro areas will remain affordable, and therefore how long they will remain attractive. On average, home prices in the cities on this month's Hottest Cities list have risen 16.1 percent over the past year, while the national median home price has fallen.
"Connecticut remains a very affordable place to live", Barral-Matt said.
