Top 10 housing markets where listings sell in under a week

August 27, 2021 5:20 PM

The increase in remote work during the pandemic drove many consumers to relocate to places with larger properties, more land and better affordability over the past year. And with mortgage rates at historic lows, homes were sold at a breakneck speed and at astronomical rates of price growth. Listings flying off the market quickest in the first half of 2021 weren't in the typical metropolitan areas. Smaller, secondary cities saw their properties last the fewest days on the marketplace before going under contract.

"By definition, the ZIPs that make our annual hottest report are very competitive, but this year they are white hot,” said Danielle Hale, Realtor.com’s chief economist. “Homes in this year's ZIPs are under contract in less than a week, which is three times faster than the contract times for last year's hottest markets."

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Realtor.com’s analysis included over 29,000 ZIP codes based on the time it takes properties to sell and how frequently homes are viewed between January and June of 2021. Only one ZIP code could be used per metropolitan area and needed at least 13 active listings each month to qualify for the study. The markets here are sorted first by time and then by annual growth in views in case of ties.

From New England to the Rocky Mountains, local lenders from the top 10 ZIP codes talk about what fuels the fervent buyer demand in their areas.

Concord City Hall aerial view in downtown Concord, New Hampshire NH, USA.

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10. Concord, New Hampshire (03301)

Out-of-towners driving up prices

Median days on market: 9 days
Annual growth in listing views: 162%
Local lender: Rafael Diaz-Alvarez, senior loan officer at Northpoint Mortgage

Why is the Concord market so hot?
I think the biggest takeaway is that typically, in any given month we have more properties on the market than we have listings sold. Starting in May of last year, that flipped.

The lack of inventory coupled

with the low interest rates

really created an intense demand. Plus, the influx of out-of-state buyers — and the

out-of-state buyers who can pay cash

or are coming with large down payments — have contributed to prices being driven up. There’s no need for appraisals or they just pay the difference.

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9. Detroit, Michigan (48336)

The wild, wild (Mid)west

Median days on market: 8
Annual growth in listing views: 122%
Local lender: Paul Apostolakis, owner at Omega Lending Group

Why is the Detroit market so hot?
It’s a wild market. Our

jobs here are doing well.

Our economy is growing. We just don't have enough houses on the market to sustain the demand and we're running out of land. The metro area doesn't really have places to build houses, so when a house does come up for sale, it goes quickly.

A lot of people are buying a house and guaranteeing the price up until whatever value. On one deal we had, someone gave a $100,000 appraisal guarantee on a $300,000 house and ended up paying $400,000 for the home. I think the coronavirus accelerated what already was a very tight housing market. If people didn't like where they live, they really felt like they needed to find a new house or more property for themselves.

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8. Rochester, New York (14617)

Where 20% escalation riders aren't enough

Median days on market: 6
Annual growth in listing views: 112%
Local lender: Nick Castronova, managing director at Oxford Capital

Why is the Rochester market so hot?
We saw it just explode. By September 2020, demand was absolutely through the roof and that’s continued to this point and I just shake my head on a constant basis. We've seen houses that were $125,000 selling for $175,000. Now realtors are saying, if you qualify someone, we have to assume that we're gonna be 30% over ask on anything.

A couple came from Manhattan and bid on a property listed at $289,000. We had an escalation clause up to $345,000 and lost the deal because it sold around $360,000. We’re seeing that over and over again. Clients are having to guarantee their offers even if the house doesn’t appraise anywhere close. This to me becomes a slippery slope where only supply and demand dictate the market.

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7. Worcester, Massachusetts (01757)

Boston-lite

Median days on market: 6
Annual growth in listing views: 264%
Local lender: Sammy Iliopoulos, senior loan officer at Guaranteed Rate

Why is the Worcester market so hot?
People are moving to the Worcester area, and a lot of people in the Worcester area are looking to invest some of their money, primarily in multifamily. They’re a lot more affordable than the Boston area and that’s obviously a big help.

In most counties surrounding Boston, borrowers would need to take out jumbo loans for the homes they can still get under the conventional mortgage limit in Worcester. This increases their affordability and also increases their chances of getting financing.

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6. Columbus, Ohio (43228)

Doing the impossible

Median days on market: 5
Annual growth in listing views: 80%
Local lender: Aric French, branch manager at Guild Mortgage

Why is the Columbus market so hot?
We are coming off levels of business I haven’t seen in my 10-year career.

One recent transaction was in contract, with an escalation clause, $45,000 over list price, with a full appraisal gap. The price of the home was already super aggressive, based primarily on what others in the neighborhood sold for. The appraisal came back $60,000 short and the buyer was obligated to pay this out of pocket, in addition to the down payment and closing costs of the loan. Oh, and the buyer paid $5,000 of seller fees as well.

My wife and I bought a new build last year in a desirable neighborhood. The base price, before any upgrades, shot up over $200,000 because of

build price increases.

That’s a 33% increase in 15 months. That should be impossible.

Manchester, New Hampshire, USA Skyline on the Merrimack River.

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5. Manchester, New Hampshire (03103)

Yankees and Red Sox coming together

Median days on market: 5
Annual growth in listing views: 81%
Local lender: Rafael Diaz-Alvarez, senior loan officer at Northpoint Mortgage

Why is the Manchester market so hot?
Clients I speak with who are relocating from Boston and New York are moving to the area because it is beautiful.

It’s close to the mountains, close to the beach, scenic, a (relatively) low cost of living. Now that they can work remotely, New Hampshire is a place to live, not just a place to vacation.

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4. Raleigh, North Carolina (27616)

Meeting of the minds

Median days on market: 5
Annual growth in listing views: 284%
Local lender: Amy Bonis, branch manager and loan officer at GoPrime Mortgage

Why is the Raleigh market so hot?
I've been in the mortgage business for almost 30 years, and I've never seen anything like it. The first-time buyer, in many cases, is being kicked out of the market. There are lots of people wanting the same house, and they're

bidding and bidding and bidding and bidding

on it. They can be approved, not pre-qualified but truly approved, and they still can't get their house. And God forbid, your offer is with a government loan, absolutely no chance of being accepted.

Raleigh offers a lot of tech here in the Research Triangle Park, outstanding people in the medical field and several major universities. I heard we have more PhDs per square mile radius than anywhere else in the country. So there's a lot of highly educated people. It's still affordable compared to other parts of America. There’s culture and it’s very family-oriented.

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3. Nashville, Tennessee (37067)

Friendly neighbors

Median days on market: 5
Annual growth in listing views: 337%
Local lender: Heino Moeller, senior mortgage loan advisor at Accurate Mortgage Group

Why is the Nashville market so hot?
Buyer demand is strong, too strong, if that’s even possible. Demand is so great that many

buyers are unable to find a home

or have their offers accepted. This is especially

affecting first-time buyers

looking for a starter home as this seems to be

the target of large institutional investors

.

Nashville has many things going for it: it’s a wonderful place to raise a family, jobs are abundant since many companies moved here over the years and are still coming, property taxes are very low compared to the states people are coming from, we have no income tax and we have four seasons but none are too extreme. Also, people are very friendly and helpful here, which may take some getting used to for people who aren’t used to total strangers greeting them with a friendly hello.

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2. Colorado Springs, Colorado (80916)

The affordable Colorado lifestyle

Median days on market: 4
Annual growth in listing views: 36%
Local lender: Jason Bates, vice president of the purchase division at American Financing

Why is the Colorado Springs market so hot?

The Denver area

has seen a significant increase in home values, which prices many buyers out of the market. On the other hand, Colorado Springs offers a Colorado lifestyle that is within more buyers' budgets, making it a very desirable market. With increasing and improving infrastructure, the commute between Denver and Colorado Springs allows people to capitalize on living in the Springs and working in Denver. Colorado Springs offers an excellent quality of life; it is a natural choice to move to.

It's important to note that

home builders are tackling

Colorado Springs at a high rate, which helps with the inventory. There are more options to choose from, and with mortgage rates near record lows, buyers can obtain very affordable pricing.

Fenway Park in Boston, Massachusetts.

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1. Boston, Massachusetts (01960)

Asking $700k over appraisal value

Median days on market: 3
Annual growth in listing views: 85%
Local lender: Sammy Iliopoulos, senior loan officer at Guaranteed Rate

Why is the Boston market so hot?
We've had

quite a few appraisals come in very

, very short, but I've never seen an appraisal come in $700,000 short in my career. And that wasn’t even in a desirable neighborhood. We had two appraisals just to confirm it.

I think people from other parts of the country are trying to move to the northeast, primarily the Boston area, because of the job opportunities and education. I have one application every single day from the state of California or New York.