DETROIT MAKES REALTOR.COM 20 Hottest Markets for Real Estate in America for January 2018

As we near the end of the first month of the new year, it’s time to take a big step back—and to take stock of the situation in real estate markets across the country. Will we see our predictions for 2018 starting to come true already?

Have home buyers refreshed their determination to land a home this year? Are home prices finally slowing their reckless rise? Does the viselike grip on housing inventories in many top markets show signs of loosening up?

Well, it does seem like change is in the air: After peaking at $275,000 in summer 2017, the nationwide median home list price is expected to remain relatively steady at $269,000. That’s 8% higher than one year ago—but in early and mid-2017 we saw double-digit price increases.

Now, we’re not saying that prices aren’t still crazily high. They’re still near historically high levels, because for-sale inventory is still quite low—and it’s down 8% since January 2017. But the good news is, approximately 365,000 new listings are expected to hit the market by month’s end, a 3% increase over last year.

“A strong stock market run, new tax laws, and a government shutdown have given buyers and sellers plenty to digest as they come to terms with the new economic landscape and their personal situation,” said Javier Vivas, director of economic research at realtor.com®. “While the national picture remains largely unchanged, real estate remains more local than ever, and demand and supply dynamics are rapidly shifting across the country as the dust begins to settle.”

We’re seeing both change and continuity in our monthly list of the hottest real estate markets in America, as well. These are compiled based on the number of listing views in each major metropolitan market (including satellite cities—so the San Francisco market includes nearby Oakland and Hayward), plus the number of days homes spend on the market before being snapped up by buyers.

In January, Silicon Valley’s biggest sibling rivalry took another turn, with San Francisco grabbing the crown back from San Jose and claiming the title of hottest real estate market in the country. San Jose came in second, followed by San Francisco’s gritty neighbor to the north, Vallejo. As usual, California dominated the ranking, with 13 out of the top 20 spots.

But there was some surprising movement, too: Chico, CA, and Midland, TX, each moved up 13 spots since December’s ranking. Midland cracked the top five for the first time since early 2015, while Chico hasn’t seen the top 20 since April.

The hot list