High interest rates might have put a damper on the typically busy spring home-shopping season, but certain cities are still surprisingly strong seller’s markets.
A seller’s market, in a nutshell, is one where demand (from buyers) is higher than supply (from sellers).And right now, the strongest seller’s market in the U.S. might come as a shock to many: Rochester, NY.
“The areas where sellers are faring the best in today’s market are concentrated in the Northeast and Midwest,” explains Realtor.com economist Hannah Jones, whocharacterizes these markets as having “relatively high buyer demand, resulting in scarce inventory and a snappy pace of sale.”
Basically, if you’re a homebuyer in Rochester or any of America’s other top seller’s markets, you might face a tough road ahead. Meanwhile, home sellers in these areas should be happy to hear that the odds are in their favor.
Signs of a seller’s market
Seller’s markets lie on a spectrum: In a weak seller’s market, sellers might expect to get an offer or two. In a strong seller’s market, that might balloon to a bidding war with offers six figures over the asking price.
Seller’s markets also wax and wane over time, so what was once a raging seller’s market last year might no longer get that designation today (like the many COVID-19 pandemic boomtowns from Denver to Austin, TX).
Rochester’s current reign as the top seller’s market has to do with its affordability. In fact, many of today’s top seller’s markets are in high demand because they offer buyers some relief from high interest rates.
Rochester is by no means the only market that’s attracting cash-strapped buyers. To find them all, the Realtor.com data team ranked U.S. cities with a “demand score” that took into account some key characteristics. One key variable for these markets was having a high sale-to-list-price ratio, meaning that homes are selling for the highest price versus their initial listing dollar amount.
On average, the top 10 seller’s markets saw homes sell for 4.2% more than the initial asking price. In the top market, homes sold for 9.2% above asking.
“By comparison, the national sale-to-list-price ratio was 0.97 in the same month, meaning nationally, homes were selling for about 3% less than the initial asking price,” explains Jones.
Want to know if your own area made the list? Here are the top 10 seller’s markets, along with the latest information on the number of listings, median prices, and days on the market so that both sellers and buyers know what to expect.
1. Rochester, NY
Median price: $295,000
Median days on the market: 16
Number of listings: 727
This is where homes are selling for almost 10% above the asking price.
“Low inventory in Rochester means multiple offers on many properties,” says Karin Morabito, a real estate agent in Rochester at Karin Morabito Homes.
But you get great value here: plentiful parks, close proximity to Lakes Ontario and Canadaigua, an upscale restaurant scene, and beautiful homes.
“You can find waterfront properties here. You can get anywhere in 20 minutes. It’s super-convenient,” says Morabito.
2. San Jose-Sunnyvale-Santa Clara, CA
Median price: $1,466,953
Median days on the market: 21
Number of listings: 1,109
San Jose, Sunnyvale, and Santa Clara are top seller’s markets because they are major tech hubs: Adobe, Apple, Nvidia, Intel, Intuit, Cisco, and many others are rooted in this part of California. This drives demand—and that median price of almost $1.5 million certainly reflects that fact.
“There are always more buyers versus homes,” says Cara Ameer, a real estate agent with Coldwell Banker licensed in California and Florida. “Buyers make strong incomes, which often push the prices above asking. Everyone wants to live at the hub of innovation.”
3. Manchester-Nashua, NH
Median price: $577,450
Median days on the market: 14
Number of listings: 251
These Southern New Hampshire towns offer the best of New England, which is what entices people to bid aggressively to nab a home here.
There are at least a half-dozen college campuses nearby, natural beauty at every turn, charming architecture, and historical sites beckoning.
Residents love all the outdoor adventures possible, from swimming holes in summer to snowshoeing in winter. But it’s not all play: Work opportunities are plentiful, in fields such as education, health care, retail, manufacturing, and defense.
4. Kansas City, KS
Median price: $422,000
Median days on the market: 47
Number of listings: 3,989
More than 2 million people live in this dynamic metro area—and many more want to move there, driving the housing market to No. 4 on our list.
Job opportunities (in health care, aerospace, and tech, among other fields) and an affordable cost of living are a couple of the big lures.
The warm, welcoming vibe and sense of community are said to be other draws, plus the diversity of available attractions, from feasting on barbecue to listening to jazz.
Not to be overlooked: Residents say this metropolis is a great place to raise a family, with plenty of suburban neighborhoods to choose from, 100 miles of trails to explore, and 29 lakes to splash in, too.
5. Topeka, KS
Median price: $255,000
Median days on the market: 32
Number of listings: 242
With a thriving economy, short commutes, a hopping downtown, and lots of scenic areas to explore, Topeka is a real up-and-comer. Houses are selling briskly, with a median price well below the current national median of $430,000.
People are drawn to such amenities as a solid public school system, museums, and parks. (Gage Park is filled with flowers in warm weather.)
In this American heartland city of 125,000, you’ll find jobs in food processing, printing and publishing, and manufacturing, as well as other sectors. Plus, it’s an hour’s drive to Kansas City for times when you want big-city energy.
6. Lancaster, PA
Median price: $423,725
Median days on the market: 29
Number of listings: 374
Set in rolling farmland, Lancaster has something for everyone, which probably explains why it’s such a strong seller’s market.
The downtown is filled with diverse restaurants, rows of galleries (which are open late on the first Friday of every month), and cool boutiques.
There are lovely and historic brick and stone buildings to transport you back in time. Lancaster Central Market, America’s oldest continuously operating farmers market; the Lancaster Stormers, a professional baseball team; and a strong job market (in trade, transportation, utilities, and health care) are also big draws.
7. San Francisco-Oakland, CA
Median price: $1,026,500
Median days on the market: 28
Number of listings: 4,354
Like the No. 2 San Jose area (and similarly having median home prices over the million-dollar mark), the greater San Francisco area ranks high as a seller’s market.
“These areas support a lot of tech-related jobs,” says Ameer, “as well as education with UC-Berkeley and many other schools and universities in the surrounding areas.”
Oakland has traditionally been more affordable than San Francisco, so buyers have been migrating in that direction, in search of less expensive homes. That kind of demand ratchets up the seller’s market stakes.
This area is also renowned for its gorgeous hills and valleys, perfect for an outdoorsy lifestyle, and the college town of Berkeley has a vibrant cultural scene, notes Ameer. There are a lot of theaters, museums, and music venues, adding to its allure. It’s no wonder homebuyers are so eager to be a part of this scene.
8. Wichita, KS
Median price: $324,900
Median days on the market: 41
Number of listings: 1,112
With a population of 400,000 in the metro area, Wichita is a rising real estate star. Though there might be many listings on the market at a given moment, the odds of a property receiving multiple offers are good enough that it takes the eighth slot on our list.
Centrally located in the Midwest by the banks of the Arkansas River, Wichita has come a long way from its start as an 1860s trading post.
Today, it’s in demand thanks to its burgeoning job market, with education, tech, and higher education being particularly strong.
While many neighborhoods have a suburban feel, the downtown is an energetic pastiche of historic buildings, cafes, street art, bistros, microbreweries, and more to keep residents entertained and well-fed.
9. Hartford, CT
Median price: $406,125
Median days on the market: 30
Number of listings: 858
New England lands on our list of top seller’s markets again with this burgeoning metro area. Hartford, the state capital, has plenty of civil service jobs, and the area is known to have strong educational standards, making it a smart place to raise a family.
There are plenty of cultural activities, parks, and nature preserves. Plus, the Bradley International Airport lets residents travel easily.
Homes are selling briskly, with a wonderful mix of architectural styles available, including Colonials, Victorians, Tudors, and bungalows. Residents say they love the mix of activities available, too, from museums like the renowned Wadsworth Atheneum to the nearby ski slopes and vineyards.
10. Syracuse, NY
Median price: $272,500
Median days on the market: 55
Number of listings: 514
Known for Syracuse University, this city of almost 150,000 rounds out the top 10 seller’s markets. With affordable homes and living costs there, buyers are bidding high and fast on properties in this upstate New York hub.
The housing stock includes an array of architectural styles, from no-fuss ranches to lovingly detailed Victorians with welcoming front porches.
Jobs in education and health care keep Syracuse’s economy humming. The fact that it’s a college town means there’s always a lot of activity, including low-priced entertainment.
The city is also known for its amazing farmers and flea markets and its picturesque landscape, making it an emerging leader on many people’s “where I want to live” wish lists.
