Real Estate 2023: 20 Most Competitive Housing Markets in America

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The housing market has been in the news much more than usual over the past few years, for a number of reasons. In 2020, during the height of the coronavirus pandemic, valuations plummeted, followed immediately by a historic decline in mortgage interest rates to below 3%.

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Then, prices did a complete reversal, with home values in some areas jumping 50% or more over the ensuing three years. While this has built tremendous equity for those lucky enough to get in early enough, it has created some serious problems for those looking to buy homes today.

The combination of record-high home prices and the fact that most Americans have locked in a mortgage rate of less than 4% means that inventory has become something of a sticking issue. Existing homeowners are reluctant to swap a sub-4% mortgage for a rate of 7% or higher, which means fewer homes are on the market. Meanwhile, home prices are so high that when combined with current mortgage rates, the required payments are out of reach for most Americans.

Yet, in some cities, demand remains high in spite of the cost, making some housing markets even more competitive than others.

To determine which are the most competitive housing markets in America, GOBankingRates sourced mean days to pending and for-sale inventory in metro areas across the U.S. from Zillow Research Data. Here are the 20 most competitive cities, presented in reverse order.

Here also are the 10 most overpriced markets in America.

20. Keene, New Hampshire

• Average days to pending: 19

• For-sale inventory: 167

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19. Norwalk, Ohio

• Average days to pending: 19

• For-sale inventory: 111

18. Auburn, Indiana

• Average days to pending: 19

• For-sale inventory: 94

17. Sidney, Ohio

• Average days to pending: 19

• For-sale inventory: 88

16. Defiance, Ohio

• Average days to pending: 19

• For-sale inventory: 80

15. Springfield, Illinois

• Average days to pending: 18

• For-sale inventory: 453

14. Rockford, Illinois

• Average days to pending: 17

• For-sale inventory: 761

13. Springfield, Ohio

• Average days to pending: 18

• For-sale inventory: 298

12. Harrisburg, Pennsylvania

• Average days to pending: 16

• For-sale inventory: 942

11. New Castle, Indiana

• Average days to pending: 18

• For-sale inventory: 141

10. Lancaster, Pennsylvania

• Average days to pending: 16

• For-sale inventory: 644

9. Reading, Pennsylvania

• Average days to pending: 16

• For-sale inventory: 642

8. Wapakoneta, Ohio

• Average days to pending: 17

• For-sale inventory: 87

7. Manchester, New Hampshire

• Average days to pending: 15

• For-sale inventory: 644

6. Concord, New Hampshire

• Average days to pending: 16

• For-sale inventory: 254

5. Marion, Ohio

• Average days to pending: 16

• For-sale inventory: 143

4. Rochelle, Illinois

• Average days to pending: 16

• For-sale inventory: 122

3. Bloomington, Illinois

• Average days to pending: 15

• For-sale inventory: 315

2. Lewiston, Maine

• Average days to pending: 15

• For-sale inventory: 235

1. Lebanon, Pennsylvania

• Average days to pending: 14

• For-sale inventory: 186

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Methodology: In order to find the most competitive housing markets in America, GOBankingRates analyzed metro areas around the country to find the places with low housing inventory and high demand. Metro areas were analyzed for their [1] Mean Days to Pending and [2] For-Sale Inventory, both sourced from Zillow Research Data. Places with low inventory are expected to be more sought after and places with low average days to pending are expected to be in high demand so GOBankingRates scored both of these factors and compared them together to find places with low inventory and low average days to pending. For an area to count it had to have both data metrics available. All data was collected and is up-to-date as-of November 15th, 2023.

This article originally appeared on GOBankingRates.com: Real Estate 2023: 20 Most Competitive Housing Markets in America