He added that the city’s size and role as the region’s economic engine are increasing pressure on supplies. “Our average days on market is closer to 40 days,” he said. “It remains a very, very popular seller’s market.”
New England dominates the market rankings
Nationally, the hottest market of any size is Manchester-Nashua, NH, operating with just 1.1 months of inventory.
The Metro closes sales within 49 days with an average price of $650,000. Denman said the region’s intensity reflects a broader trend radiating outward from Boston.
“What makes the neighboring markets so attractive – like Hartford, Conn., Manchester, Quincy and so on – is their proximity to Boston’s jobs and economy, at about a 40% discount to real estate values,” he said. “We’re also seeing a lot more hybrid work post-COVID, so the larger Boston market is actually expanding about an hour outside of Boston to neighboring cities like Springfield, Hartford, Manchester and Worcester.”
Denman also emphasized that Boston’s housing shortage is not a normal market phenomenon.
“There are some limitations here, given how old the city is,” he said. “There’s not a lot of land and the zoning laws are still quite restrictive,” he said. “It’s these factors that are causing this. It’s not just a cyclical inventory problem, it’s actually a structural problem.”
These restrictions, combined with steady demand from highly skilled workers and continued immigration, are putting continued upward pressure on prices, Denman added.
“The average home price in Boston ranges between $875,000 and $900,000, and that’s another problem we’re trying to manage,” he said.
West, Midwest and South show varied market heat
Outside New England, markets exhibit different dynamics.
In Chico, California, homes are living longer despite limited supply, while Duluth, Minnesota, and Saginaw, Michigan, show that affordability can still come with high market heat.
Northern California markets exhibit some different characteristics than their East Coast counterparts. While holding 1.4 months of inventory and an average price of $425,000, homes are taking longer to sell at 84 days – nearly double the time seen in the fastest markets in the Northeast.
The cross-border metropolitan area of Duluth has a month and a half of inventory, an average turnover of 63 days, and an average price of $279,950. The city represents excellent affordability within the warm market category.
The 598 active market listings and 101 weekly withdrawals indicate a substantial market that maintains competitive conditions despite its northern location and moderate prices.
The urge to buy remains high
Among major metro areas, Boston was followed by Wilmington, NC; San Francisco-Oakland-Fremont; Seattle-Tacoma-Bellevue; and Baltimore-Towson.
Despite still high interest rates, Denman noted that buyers remain highly motivated in his service area.
“We just saw the Fed announce another rate cut, and we expect this will put some downward pressure on mortgage rates, which will increase affordability,” he said. “Despite all the headwinds in the economy, there are still buyers.”
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