Manchester Back On Top As January’s Hottest Housing Market

Manchester, NH, has snatched its crown back from Springfield, MA, and Rockville, IL, to become America’s hottest housing market in January.

The median list price in Manchester was $579,000 last month, up nearly 4% from December, as buyers flock to New Hampshire, an income and sales tax haven and relatively affordable Northeastern state.

The push is exacerbating stock shortages and keeping house prices elevated, but demand persists. Unsold homes were scooped up within 46 days, much quicker than the national median of 73.

“Manchester’s hotness means that high demand is met with low inventory as buyers claim available homes,” Hannah Jones, Realtor.com senior economic research analyst, said.

“The ongoing demand in the area has prevented inventory from recovering, keeping attention-pre-property high and market pace snappy.”

The Northeast and Midwest dominated Realtor.com’s Hottest Housing Markets list for the 16th straight month, as Southern and Western states see declines.

“The Midwest and Northeast have reigned supreme as homes to most of the country’s hottest markets since mid-2022, when mortgage rates picked up steam,” Jones commented.

Hartford, CT, came in second, followed by Kenosha, WI; Norwich, CT; and Worcester, MA.

Rockford, IL, which dethroned Manchester last month, was bumped all the way down to 7th place.

But certain states could pick up in the coming year.

Texas is racing to build new houses as it gains new residents from around the world. It is projected to overtake California as the most populous state by 2045.

In 2024, it had the most new house permits of any state, accounting for 15% of the national total.

A glut of new construction should put downward pressure on prices.

“Texas has responded [to scarce inventory] by building more and smaller homes to meet demand, helping the market settle and housing inventory climb back to pre-pandemic levels ahead of the nationwide recovery,” Realtor.com Chief Economist Danielle Hale noted.