Photo: Charles Henry/Flickr
For the second consecutive month, Midland, TX was named the hottest housing market in the US.
And, while California is home to many of the country’s priciest markets — like white-hot San Jose and San Francisco — only four Golden State markets managed to place on the top 20 list compiled by Realtor.com.
This sharply contrasts with just two months ago when California dominated with 10 markets making the list.
But, California’s sudden lack of prominence on the list wasn’t a total surprise. As Realtor.com reported last week, many Californians have reached their breaking point due to high home prices and are looking to move — either to a more affordable county within the Golden State or to an different state altogether.
“The California housing market has been hot for a long time – but may be too hot. Our May hotness index further confirms we’re seeing that as prices in California continue to soar, people are increasingly looking elsewhere,” Javier Vivas, director of economic research for Realtor.com, says in the digital release.
In addition to Texas and California, eight other states were featured in the newly released top 20, including Massachusetts, Ohio, Idaho and New York.
May’s top five hottest markets were Midland, Boston, MA, San Francisco, CA, Columbus, OH and Vallejo-Fairfielf, CA.
Midland proved to be the most popular market for home searches on Realtor.com in May. The median age of its housing stock on Realtor.com was 28 days in May, down from 30 days recorded in April — an indicator of its increasing popularity among buyers.
Located west of Dallas and Northwest of booming Austin, Midland is a “Texas oil town.”. One of its tourist attractions is Boom Town, a replica of a 1930s oil town with a land office and general store.
Two additional Texas markets made the list, Odessa (17th position) and Dallas (19th position).
May’s top 20 list reflects growing homebuyer demand for more affordable housing markets, with seven Midwest markets making their way into the top 20 — the highest since Realtor.com began tracking the data.
“As we continue into what we expect to be the hottest home-buying season in history, look for a wide variety of locales to remain red-hot,” Vivas says.
Realtor.com creates the list by analyzing housing market supply and demand by using Realtor.com listing views as an indicator of demand and median days on market as an indicator of supply.
Meantime, national housing inventory fell six percent annually in May, but was up six percent compared to the previous month.
The median list price grew by 8 percent year-over-year for the third consecutive month. The “slowdown” in price appreciation was attributed to 557,000 new listings on Realtor.com hitting the market in May — the highest number since July 2015, according to Realtor.com.
Click here to read the entire release.