If you’re thinking about selling your home, now may be a great time. Especially in the greater Phoenix area, which ranks No. 2 among the hottest housing markets in the U.S.
The housing market has boomed recently due to high demand, low inventory, fluctuating rates, and the search for more space and comfort throughout the pandemic.
House Method analyzed data on the 100 largest metropolitan areas and ranked them according to seven factors across three main categories: affordability, inventory and population growth.
In the hottest areas, homes sit on the market for short amounts of time before selling for top dollar and attracting new residents at a rapid rate.
The Phoenix-Mesa-Scottsdale area ranked as the second-hottest market in the U.S. with an overall score of 36.71. It scored a 73 for affordability, 14 for inventory and 13 for population growth. Tampa, Fla. snagged the No. 1 spot as the hottest housing area in the country.
To determine each ranking, House Method considered the following: home price change percentage in 2021 versus 2022; the average price per square foot’ the majority of homes available above and below the national cost average of $428,700; the average active home listing per month; the average day on the market before pending sale; and the population growth change percentage from the 2010 census versus the 2020 census.
Other interesting findings from the House Method study include:
- Home prices have increased by an average of 21% since 2021
- The top 10 markets rarely have listings that sit on the market for more than 15 days, which is 40% less time than the national average of 25 days
- Many of the hottest housing markets are also some of the least affordable as demand increases and inventory decreases
- Home equity has skyrocketed, allowing sellers to make huge profits
- Home prices are projected to increase another 14.9% before 2023, even as steep mortgage rate increases
You can view the complete list of metropolitan areas and their rankings here.