Why the South and West cant seem to crack the list of Americas hottest housing markets

Where are people shopping for homes now that mortgage rates have fallen significantly from last October’s peak?Not in the South.Nor out West.For the past year, these huge chunks of the country have been consistently left off the Realtor.com rankings of the Hottest Housing Markets, pushed aside by places such as Manchester, NH (which just ranked No.

1 for the 30th time in seven years and the ninth month in a row).So why aren’t homebuyers flocking to these sunnier, warmer climes?In the case of the South, it comes down to supply and demand: This region of the country has seen housing stock boom over the past year as buyer demand waned.“More homes means fewer viewers per home, and more time on market, which results in a very cool hotness reading,” explains Hannah Jones, Realtor.com senior economic research analyst.And you can blame high home prices for the West’s absence from these rankings.“As mortgage rates remain relatively high, many West-region buyers cannot contend with the area’s prices, which results in more inventory, a slower market pace, and a cooler hotness score,” Jones says.With Manchester leading the way, the Northeast and the Midwest boast 10 markets each on the list.“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,” says Jones.Manchester touts a trifecta of features that make it attractive to homebuyers: This small Northeastern city is an hour from a large metro (Boston); it boasts a relatively affordable median home price of $563,000 ($277,000 lower than Beantown’s $840,000); and it’s in New Hampshire, which doesn’t have any state income and sales taxes.“This Boston-adjacent metro has been red-hot since March 2021, ranking among the top three markets each month for more than three years,” Jones says in her analysis.Manchester’s listings received 3.4 times more views in September than the national average, wit...