The housing market in 2024 is full of surprises, with certain regions standing out for their fast-growing demand and rising home prices. This year, the Oshkosh-Neenah, WI metro area claimed the top spot as the hottest housing market in the U.S. for the first time ever. With increasing demand and limited homes available for sale, prices in the hottest markets are on the rise, while competition among buyers remains fierce.

Key Highlights:

• Oshkosh-Neenah, WI metro area is the hottest housing market for the first time.
• Prices in the hottest markets are growing faster than the national average, with a 11.0% price increase in July 2024.
• The Northeast and Midwest dominate the top 20 hottest markets list, with 10 markets each.
• The Las Vegas metro area saw the biggest jump in rankings among large U.S. metros, moving up 73 spots to rank 184th.

Oshkosh-Neenah Takes the Lead

In July 2024, the Oshkosh-Neenah, WI metro area topped the charts, becoming the hottest housing market in the U.S. This wasn’t an overnight success, as Oshkosh had steadily climbed the rankings from 20th place in May to 4th place in June before hitting the top spot in July. Even before this, Oshkosh was consistently in the top 20, reflecting strong demand in the region.

Realtor.com’s Market Hotness rankings measure two key aspects:

1. Demand – determined by the number of unique views each property receives.
2. Market Pace – measured by how quickly a listing is sold, or how long it remains active.

Oshkosh, in particular, saw an incredible 3.7 times more views per property than the national average, with home prices in the area jumping by 15% year-over-year.

Price Growth in the Hottest Markets

While nationwide home prices were relatively flat in July 2024, the hottest markets saw more significant price increases. In these regions, prices grew by an average of 11.0%, up from 8.1% in June. This increase is driven by high demand and limited housing inventory. The hottest markets had 2.8 times the views per property compared to the national average, showing that buyers were very interested in these areas.

Despite rising home prices, buyers in the hottest markets are acting fast. Homes in these regions spent an average of 26 days on the market, which is 5 days faster than last year and half the national median.

Inventory Challenges: Low Supply, High Demand

The challenge in the hottest markets is the limited supply of homes. Nationally, active listings increased by 36.6% year-over-year, but in the hottest markets, the growth in inventory was more subdued, at 18.4%. Inventory in these regions is still well below pre-pandemic levels, with an average 66.9% decrease since before COVID-19.

This lack of inventory is driving intense competition. As a result, homes are being sold more quickly, and prices are continuing to climb.

Who Made the Cut?

Several markets made big jumps into the top 20 hottest housing markets in July. Monroe, MI, and Rochester, NY leaped into the 6th and 9th spots, up from 36th and 38th in June. Other cities that climbed into the top 20 include:

• Lancaster, PA
• Peoria, IL
• Green Bay, WI
• Cleveland-Elyria, OH

These cities reflect a broader trend where buyers are gravitating toward Midwest and Northeast markets, drawn by more affordable home prices and growing job markets.

Who Dropped Out?

Six cities that were in the top 20 in June didn’t make the list in July, including Bridgeport-Stamford, CT, Columbus, OH, and Reading, PA. However, these markets didn’t fall far, remaining within the top 50.

Looking at the biggest year-over-year drops, Lubbock, TX, Wichita Falls, TX, and Decatur, AL saw the largest declines in their rankings, falling over 100 spots. The shift away from Southern and Western markets shows how trends are changing as buyers look for affordability and more stable markets.

2024 – Top 20 Hottest Housing Markets

Larger Markets Heating Up

While the largest 40 metro areas in the U.S. still lag behind the hottest markets, they are starting to show improvement. On average, these larger markets got 3 ranks hotter in July compared to the previous year. Despite slowing demand in some regions, homes in large metros were still selling 9 days faster than the national median.

Among the biggest movers were:

• Las Vegas-Henderson-Paradise, NV – Moved up 73 spots to rank 184th.
• Philadelphia-Camden-Wilmington, PA-NJ-DE-MD – Moved up 69 spots to rank 108th.
• Kansas City, MO-KS – Moved up 63 spots to rank 159th.

What’s Next for the Housing Market?

As 2024 progresses, the housing market is expected to remain competitive, especially in the Midwest and Northeast regions. With low inventory and high demand continuing to drive prices up, buyers will need to act quickly in the hottest markets. Meanwhile, larger markets are showing signs of stabilization, with home prices softening and affordable inventory on the rise.

Overall, the Midwest and Northeast are likely to continue dominating the housing market in the near future, as more buyers seek out these affordable and attractive areas.