In some metros, real estate sales are moving briskly

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Published Date 10/23/2023

Think real estate is fairly stagnant these days? Think again. According to Realtor.com’s Evan Wyloge, the overall housing market may have slowed—but many buyers across the U.S. are still racing to close deals in locales they can’t resist.

Wyloge puts it this way: “Call it a perfect storm, a classic squeeze play, or maybe just one wildly stressed marketplace. But the unique combo of mortgage rates shooting up to their highest point in a generation, a near-historic lack of available homes on the market — along with the resiliency of some buyers eager to find a way into homeownership no matter what — has led to the pace of home-buying picking up in many parts of the country.”

Plain and simple, in many areas of the U.S. there are those who can still afford to purchase a home and are in a rush to beat the competition. Wyloge reports that nationally, the median home listing was on the market for 49 days in the first week of October, according to a Realtor.com® analysis. “That’s just a bit less than the same time last year. But we identified the places where homes are selling significantly faster than they were a year ago—places where buyers do not have the luxury of time and sellers can often expect to turn around a quick transaction.”

He identifies a mishmash of places in both affordable and high-priced markets, spanning from the Northeast to the Southwest. From the Rust Belt to the sands of sunny California to the salty homes of Connecticut, there are some places where homes move more quickly despite affordability challenges. Seems there is still a pool of eager homebuyers looking for a good deal while navigating a low inventory of available homes.

Like other things in life — like when people were outraged over gas prices and left their cars at home — buyers have become more acclimated to higher mortgage rates, especially when there are homes to be had in places they consider desirable locations, where homes are still selling briskly, according to local real estate agents.

Wyloge points to housing markets where homes are selling lit hotcakes, looking first to the median days on the market in the first week of October in the 100 largest metropolitan areas. “We compared those figures with a year earlier. We selected only the metro with the largest decline in each state to provide geographical diversity.” These metros include the main city and surrounding towns, suburbs, and smaller urban areas.

The first is Buffalo, N.Y, where the median list price is $239,900, and where homes are selling 13 days faster than a year ago — faster in comparison than any other metro in the nation. It helps that homes in Buffalo are about $200,000 less than the national median of $429,500, but inventory here is extremely tight.

Next, look to the desert and Phoenix, AZ, where median list prices hover at $475,000. Despite the intense heat from May through September (and sometimes beyond), the Phoenix metro has been one of America’s fastest-growing regions for years. And that torrid home sale pace has lately accelerated: Phoenix homes are selling almost two weeks faster than one year ago. Why? Perhaps it’s because the area has no earthquakes, no tornadoes, no hurricanes and no snowstorms. Good AC and perhaps a pool can go a long way toward surviving the summers there. Luxury homes are actually selling faster than those priced below $1 million because of an influx of cash buyers in the luxury market — those who need not worry about higher mortgage rates.

You may not like the name of the city, but Oxnard, situated right on the Pacific, near where Southern California becomes Central California, is known for its beautiful beaches, which are typically less crowded than those to the south, as well as its thriving agricultural industry. Here homes are selling briskly in the metro for more than they did last year, with a median list price sitting at 7% higher than a year ago at $875,000. While that figure is significantly less than in the Los Angeles metro area, where the median list price was $1,175,000 in September, for $469,000, buyers can find a top-floor, one-bedroom condo with waterfront views in the Channel Islands Harbor community.

Boy. How ‘bout that Boise? With a median list price of $519,900, the city's housing market, known for its close proximity to great outdoor recreation and mild seasons, was turbocharged during the COVID-19 pandemic as people fled dense, coastal population hubs. The interest rate rise caused a whiplash of price declines and slowing demand. According to Wyloge, home prices declined 15% from their high in the middle of 2022, and the median time on the market went from three weeks at the peak to three months at the nadir. But things have begun to bounce back in recent months.

Now? The median Boise home sale in this metro of 814,000 residents (and still growing fast) is almost 10 days faster than a year ago.

What happens in Las Vegas stays in Las Vegas, including throwing the dice. In this city whose lights never dim, home prices sit around $500K. “The shimmering city in the Nevada desert has long appealed to retirees and those seeking to throw their snow shovel in the dumpster,” says Wyloge. “For just about everyone else, the entertainment, casinos, and low taxes are the big draws.” The area is also known, however, for its swingy real estate market, which has seen some of America’s biggest booms and deepest busts.

“Like Phoenix, Las Vegas was among the worst hit during the housing crash of 2008,” says Wyloge. “When interest rates began to climb in 2022, the Las Vegas housing market came to a halt. The typical home sat on the market for 80 days before selling, longer than at any point in the past five years.” Now Las Vegas homes are selling about a week faster than the national median, and near pre-pandemic levels.

Bridgeport, CN is situated about 60 miles northwest of New York City — a metro that boasts one of the smallest portions of price reductions and the fewest homes for sale. The metro includes towns up and down the Long Island Sound, like posh Greenwich and Westport. “It’s long been an attractive option for those who commute to their New York City office five days a week—and is even more so now with hybrid work flexibility,” says Wyloge. Median list prices in the Bridgeport area hit just below $800,000. But with homes selling more than a week faster than one year ago, it’s showing signs of sustained demand in the face of limited supply.

Other areas selling more briskly include Harrisburg, PA. a metro of about 600,000 in Central Pennsylvania, which has the quickest average time-on-market of any place on our list and homes go for around $300K, similarly priced Springfield, MA, Cleveland, OH, ($199,000), and Portland, ME, ($549,000), a northeastern getaway city known for its rugged coastline, abundant natural beauty, and vibrant food scene.

Realtor, TBWS

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