Houses sell in under a week in these 10 cities
Houses sell in under a week in these 10 cities
Data from real estate brokerage Redfin found that the five-month streak of record-breaking average house prices across the US was broken last week by the beginnings of a recovery in inventory and slowing demand.
This could signal good news for buyers who have struggled to get offers accepted in the face of extreme competition for properties, but that will only be true in some locales. There are still markets in which homes are in extremely high demand.
These cities are identifiable through a separate data set from Redfin, the Compete Score, which measures the number of competing offers on a property; the number of waived contingencies (inspection, financing, etc); how much property sells above the asking price; and the number of days on the market. Cities are ranked out of a top score of 100.
Many of the places that fall into the top ten of the most competitive real estate markets at the moment are so-called “Zoom cities” – a reference to the remote working app.
They saw a huge increase in real estate activity during the Covid-19 pandemic, as homeworking became the norm for many office workers.
Some people found they were able to loosen or cut ties with a central office location and were then free to live almost wherever they like.
Zoom cities sit in a sweet spot among urban centres in the US and are attractive to a wide variety of buyers – both families and single people.
They tend to be well-connected, medium-sized metro areas, and often they are college towns. Buyers are attracted to them for their reliable high-speed internet, diverse housing stock, and desirable cultural, lifestyle, and recreation amenities.
Here are the top ten most competitive cities for home buyers in the US as of July 2021, per the Redfin ranking.
1. Littleton, Colorado
In July 2021, home prices in Littleton, a suburb of Denver, were up 18.5 per cent compared to last year, selling for a median price of $593,000. On average, homes in Littleton, with its tree-lined streets and historic downtown, sell after just five days on the market compared to nine days last year. A particularly sought-after home can sell for 10 per cent over the asking price in three days.
2. Aurora, Colorado
In another suburb of Denver, Aurora, nicknamed “Gateway to the Rockies”, home prices were up 15.8 per cent in July year-on-year, selling for a median price of $443,000. Homes in Aurora, the state’s third-largest city, sell after five days on the market compared to 10 days last year. A “hot home” can sell in three days for 10 per cent over the asking price.
3. Tacoma, Washington
Perched on the edge of Commencement Bay, south of Seattle, Tacoma home prices were up 19.1 per cent compared to 2020, selling for a median price of $455,000. On average, homes in Tacoma sell after six days on the market compared to seven days last year. Particularly desirable properties can go for 12 per cent over the list price in just four days.
4. Spokane, Washington
Deeper into Washington state and known for its liveability, mountain biking, and large number of parks and golf courses, Spokane has seen home prices soar 36.5 per cent over 2020 levels. The median price now sits at $385,000 and it takes on average just five days to sell a home. South after houses can sell at 13 per cent over asking price in an astonishing three days.
5. Grand Rapids, Michigan
One of only two entrants into the top ten in the eastern half of the lower 48 states, Grand Rapids, Michigan, east of Lake Michigan, is one of the fastest-growing cities in the Midwest. Once known as Furniture City and now known as Beer City, this economically diverse town saw home prices up 12.6 per cent over 2020 at an average price of $243,000. On average a home will sell in six days, but a hot property will sell for 15 per cent over the asking price in just four.
6. Sacramento, California
The capital of the Golden State has seen a 19.7 per cent increase in the average house price since 2020, with many migrating out of the expensive Bay Area to the west. The average price of a home sits at $455,000 and spends seven days on the market. Sought-after properties can sell in just five days at nine per cent over the list price.
7. Omaha, Nebraska
It takes just six days to sell the average house in Omaha, home to Berkshire Hathaway, Mutual of Omaha, and Union Pacific Corporation. The median price of a property is up 13.9 per cent over 2020 at $245,000. Homes sell on average in six days, compares to eight last year. Competition can really heat up over some houses, leading to sales in just three days at eight per cent over the asking price.
8. Colorado Springs, Colorado
Nestled beneath Cheyenne Mountain, Colorado Springs is known for its quality of life, picturesque surroundings, and great weather. Average sale prices are up 21.1 per cent over 2020 at $430,000. The median number of days on the market is eight, but a hot property can sell in just four at more than nine per cent over the listed price.
9. Riverview, Florida
Florida’s only entry, a suburban district to the east of Tampa, Riverview saw house prices leap 25.7 per cent over 2020 levels to a median of $324,000. Homes usually sell in just five days compared to 26 days last year. That drops to just two days for an especially hot home, which will also see a five per cent bump on the asking price.
10. Denver, Colorado
Sandwiched between our number one and two spots, and the largest city by population on the list, is Denver. At the foot of the Rocky Mountains it has been one of the fastest-growing cities in the country in recent years. House prices have increased 16.8 per cent over 2020 and the median sale price is now $555,000. While the average home will sell in six days, down from 12 days in 20202, but that drops to just three days for more desirable properties, which will also see offers at nine per cent over asking price.