Imagine housing markets so hot that:
- Average 2016 percentage home price increase was in the double digits with some 30 percent or greater
- Average listing-to-sales price ratio was greater than 100 percent
- Median days on the market was less than 15 days to as low as five days
All of these are true in the hottest housing markets identified in a study by Redfin. They examined 27 metros using five factors. Each of the factors in the following table were equally weighted except average-list-to-sales price, which was given three times the weight. To be included, the neighborhood had to have a minimum 50 home sales from January 1, 2016 to December 5, 2016. Following are the top-10 hottest housing neighborhoods.
In the report, Redfin noted that Seattle had 10 of the top 30 neighborhoods, Boston eight and San Francisco three.
To read the entire study including the ranking of the top-30 neighborhoods click https://www.redfin.com/blog/2016/12/most-competitive-neighborhoods-of-2016.html
While these markets indeed were hot in 2016, expect many others to compete for top ranking in 2017. Just like in the stock market, past performance does not guaranty future results. Limited inventory in these markets, however, bodes well for home sellers and at the same time is a challenge to buyers.