This story originally appeared on Construction Coverage.
Despite the current COVID-19 recession and the initial drop in home sales, the national housing market expanded significantly in 2020.
According to a report by the Joint Center for Housing Studies of Harvard University, record-low home inventories in tandem with historically low mortgage interest rates will most likely ensure home prices continue to rise.
Data from Zillow shows that the national average monthly home value index for 2020 was 4.7% higher than in 2019. Yet some housing markets have significantly exceeded this growth.
To find the hottest real estate markets of 2020, researchers at Construction Coverage analyzed data from Zillow on the largest 95 real estate markets in the U.S. They created a composite score of each city based on the following metrics:
- Previous one-year change in home price (the percentage by which median home price increased or decreased over the last 12 months)
- Median price cut (the median percentage by which the final selling price was reduced from the original listing price)
- Median days on the market (from listing to pending)
- Projected one-year change in home price (the percentage by which median home price is expected to increase or decrease over the next 12 months)
Following are the hottest real estate markets of 2020.
15. Memphis, TN
- Composite score: 70.75
- Median home price 2020: $161,066
- Previous 1-year change in home price: 7.7%
- Median price cut: 2.3%
- Median days on the market: 10
- Projected 1-year change in home price: 5.9%
14. Austin, TX
- Composite score: 71.25
- Median home price 2020: $348,838
- Previous 1-year change in home price: 5.4%
- Median price cut: 1.8%
- Median days on the market: 11
- Projected 1-year change in home price: 6.1%
13. Columbus, OH
- Composite score: 74.00
- Median home price 2020: $218,158
- Previous 1-year change in home price: 6.6%
- Median price cut: 2.2%
- Median days on the market: 7
- Projected 1-year change in home price: 6.2%
12. San Diego, CA
- Composite score: 74.50
- Median home price 2020: $620,635
- Previous 1-year change in home price: 5.8%
- Median price cut: 2.1%
- Median days on the market: 15
- Projected 1-year change in home price: 8.2%
11. Charlotte, NC
- Composite score: 74.75
- Median home price 2020: $249,275
- Previous 1-year change in home price: 7.0%
- Median price cut: 1.9%
- Median days on the market: 11
- Projected 1-year change in home price: 6.0%
10. Tampa, FL
- Composite score: 75.75
- Median home price 2020: $230,627
- Previous 1-year change in home price: 6.1%
- Median price cut: 2.0%
- Median days on the market: 17
- Projected 1-year change in home price: 8.1%
9. Seattle, WA
- Composite score: 77.50
- Median home price 2020: $536,718
- Previous 1-year change in home price: 7.5%
- Median price cut: 2.6%
- Median days on the market: 7
- Projected 1-year change in home price: 7.7%
8. Sacramento, CA
- Composite score: 79.00
- Median home price 2020: $438,115
- Previous 1-year change in home price: 5.5%
- Median price cut: 2.1%
- Median days on the market: 11
- Projected 1-year change in home price: 8.8%
7. Albuquerque, NM
- Composite score: 79.50
- Median home price 2020: $219,355
- Previous 1-year change in home price: 8.0%
- Median price cut: 2.1%
- Median days on the market: 10
- Projected 1-year change in home price: 6.4%
6. Provo, UT
- Composite score: 79.50
- Median home price 2020: $362,479
- Previous 1-year change in home price: 6.1%
- Median price cut: 1.6%
- Median days on the market: 12
- Projected 1-year change in home price: 6.6%
5. Salt Lake City, UT
- Composite score: 80.75
- Median home price 2020: $398,728
- Previous 1-year change in home price: 6.6%
- Median price cut: 2.0%
- Median days on the market: 9
- Projected 1-year change in home price: 6.3%
4. Tucson, AZ
- Composite score: 81.50
- Median home price 2020: $227,902
- Previous 1-year change in home price: 8.3%
- Median price cut: 2.2%
- Median days on the market: 11
- Projected 1-year change in home price: 7.6%
3. Ogden, UT
- Composite score: 82.50
- Median home price 2020: $341,196
- Previous 1-year change in home price: 8.1%
- Median price cut: 2.0%
- Median days on the market: 11
- Projected 1-year change in home price: 6.7%
2. Phoenix, AZ
- Composite score: 87.00
- Median home price 2020: $298,322
- Previous 1-year change in home price: 9.4%
- Median price cut: 1.6%
- Median days on the market: 17
- Projected 1-year change in home price: 8.5%
1. Boise, ID
- Composite score: 92.00
- Median home price 2020: $337,099
- Previous 1-year change in home price: 11.5%
- Median price cut: 1.8%
- Median days on the market: 10
- Projected 1-year change in home price: 7.8%
Methodology & Detailed Findings
To identify the hottest real estate markets of 2020, researchers at Construction Coverage used data from Zillow to create a composite score based on the following metrics (all weighted equally):
- Previous 1-year change in home price
- Median price cut
- Median days on the market (from listing to pending)
- Projected 1-year change in home price
Only the 95 largest real estate markets in the U.S. with available data from Zillow were included in the analysis.
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