The next hot housing markets, believe it or not, are cities like Wilmington, Delaware.
Smaller, inland cities like Wilmington, Philadelphia and Atlanta lead a handful of metro areas where supply is shrinking, leaving more homes to go under contract within days, and for above-list price than a year ago, according to Redfin.
"Competition in Wilmington has become fierce and often buyers have to offer over asking and compete against three to six other offers," said Claryssa McEnany, agent at Redfin. "Too many sellers are staying put. Buyers are motivated and want to move now but there just aren't enough homes available."
To identify the markets that are still heating up, Redfin ranked the top-25 metro areas with populations of at least 500,000 people, according to three indicators of a competitive seller's market:
- Decreased inventory of homes for sale.
- Increases in the share of homes going under contract within two weeks of their market debut.
- Increases in the share of homes selling for more than their list price.
Housing markets that are heating up the most (See Chart Below)
| Metro Area | YoY percent change in Inventory | Off Market in 2 Weeks | YoY percentage point change in Off Market in 2 Weeks | Sold Above List | YoY percentage point change in Sold Above List | Median Sale Price | YoY percent change in Median Sale Price |
| Wilmington, Del. | -24.5% | 25.0% | +6.4 pts | 22.1% | +4.5 pts | $219,900 | +4.8% |
| Philadelphia, | -22.9% | 21.4% | +2.4 pts | 21.2% | +3.0 pts | $195,000 | +8.3% |
| Atlanta | -19.7% | 28.8% | +4.1 pts | 21.1% | +1.0 pts | $235,000 | +7.3% |
| Rochester, N.Y. | -16.2% | 36.4% | +5.4 pts | 36.6% | +8.2 pts | $141,050 | +4.5% |
| Greensboro, N.C. | -15.6% | 11.3% | +2.7 pts | 23.2% | +5.8 pts | $166,000 | +7.8% |
| Akron, Ohio | -12.5% | 15.9% | +1.3 pts | 22.4% | +2.9 pts | $143,500 | +10.3% |
| Richmond, Va. | -8.8% | 39.8% | +1.7 pts | 29.2% | +1.9 pts | $235,000 | +2.2% |
| Buffalo, N.Y. | -8.3% | 38.6% | +4.9 pts | 39.8% | +2.1 pts | $159,000 | +8.5% |
Contrast the numbers above with markets like Seattle, San Jose and Portland, where inventory has been increasing by double digits, and the shares of homes going under contract quickly is shrinking. Homes in the metro areas that are heating up are also considerably less expensive than not only the hot coastal markets, but also the national median price of about $300,000.
Plus, except for Atlanta and Philadelphia, all of the heating-up metro areas are smaller, with populations under 2 million. Atlanta is also a top migration destination, moving up from No. 5 among long-distance Redfin.com user searches in the third quarter of 2017 to No. 2 in the third quarter this year.
"Competition in Wilmington has become fierce and often buyers have to offer over asking and compete against three to six other offers," said Claryssa McEnany, agent at Redfin. "Too many sellers are staying put. Buyers are motivated and want to move now but there just aren't enough homes available."
To identify the markets that are still heating up, Redfin ranked the top-25 metro areas with populations of at least 500,000 people, according to three indicators of a competitive seller's market:
- Decreased inventory of homes for sale.
- Increases in the share of homes going under contract within two weeks of their market debut.
- Increases in the share of homes selling for more than their list price.
Chart below shows the housing markets that are heating up the most
| Metro Area | YoY percent change in Inventory | Off Market in 2 Weeks | YoY percentage point change in Off Market in 2 Weeks | Sold Above List | YoY percentage point change in Sold Above List | Median Sale Price | YoY percent change in Median Sale Price |
| Wilmington, DE | -24.5% | 25.0% | +6.4 pts | 22.1% | +4.5 pts | $219,900 | +4.8% |
| Philadelphia, PA | -22.9% | 21.4% | +2.4 pts | 21.2% | +3.0 pts | $195,000 | +8.3% |
| Atlanta, GA | -19.7% | 28.8% | +4.1 pts | 21.1% | +1.0 pts | $235,000 | +7.3% |
| Rochester, NY | -16.2% | 36.4% | +5.4 pts | 36.6% | +8.2 pts | $141,050 | +4.5% |
| Greensboro, NC | -15.6% | 11.3% | +2.7 pts | 23.2% | +5.8 pts | $166,000 | +7.8% |
| Akron, OH | -12.5% | 15.9% | +1.3 pts | 22.4% | +2.9 pts | $143,500 | +10.3% |
| Richmond, VA | -8.8% | 39.8% | +1.7 pts | 29.2% | +1.9 pts | $235,000 | +2.2% |
| Buffalo, NY | -8.3% | 38.6% | +4.9 pts | 39.8% | +2.1 pts | $159,000 | +8.5% |
Contrast the numbers above with markets like Seattle, San Jose and Portland, where inventory has been increasing by double digits, and the shares of homes going under contract quickly is shrinking. Homes in the metro areas that are heating up are also considerably less expensive than not only the hot coastal markets, but also the national median price of about $300,000.
Plus, except for Atlanta and Philadelphia, all of the heating-up metro areas are smaller, with populations under 2 million. Atlanta is also a top migration destination, moving up from No. 5 among long-distance Redfin.com user searches in the third quarter of 2017 to No. 2 in the third quarter this year.
