The 15 Hottest Real Estate Markets of 2020

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Real estate agent in front of a home for saleSean Locke Photography / Shutterstock.com

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

Memphis, Tennesseef11photo / Shutterstock.com

  • 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

Austin, Texas waterscapeSilvio Ligutti / Shutterstock.com

  • 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

Columbus, OhioRandall Vermillion / Shutterstock.com

  • 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

The skyline of San Diego, where median rent is well below median mortgage paymentsDancestrokes / Shutterstock.com

  • 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

Charlotte, North CarolinaKevin M. McCarthy / Shutterstock.com

  • 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

Tampa, Floridapicturin / Shutterstock.com

  • 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

Seattle skylineChecubus / Shutterstock.com

  • 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

Sacramento, CaliforniaEd Gavryush / Shutterstock.com

  • 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

Albuquerque, New MexicoBrigitteT / Shutterstock.com

  • 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

Provo, UtahJohnny Adolphson / Shutterstock.com

  • 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

Salt Lake City, Utahf11photo / Shutterstock.com

  • 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

Tucson, AZSean-Pavone / Shutterstock.com

  • 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

Ogden, Utah, Union StationPureRadiancePhoto / Shutterstock.com

  • 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

Phoenix, Arizonawelcomia / Shutterstock.com

  • 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

Boise, IdahoCSNafzger / Shutterstock.com

  • 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

A man studies financial data at his computerNicoElNino / Shutterstock.com

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.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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