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These Are the Hottest Zip Codes in 2020, Data Shows


Sep 24, 2020 by Maurie Backman

The coronavirus pandemic has had a profound impact on the housing market. Specifically, inventory has declined from previous years as sellers have hesitated to list their homes. That's created an uptick in buyer demand, especially since mortgage rates have dropped to record lows over the past few months.

Still, some housing markets are seeing more demand than others. Recently, Realtor.com released a report of the hottest zip codes of 2020, based on factors like the median number of days a home sits on the market and views per property online.

The 10 hottest markets, by ZIP code

Based on this data, here are 10 cities whose housing markets may be worth investing in.

1. Colorado Springs, Colorado: 80911

  • Median listing price: $287,000
  • Median days on market: 13
  • Views per property year over year: +38%

2. Reynoldsburg, Ohio: 43068

  • Median listing price: $204,000
  • Median days on market: 17
  • Views per property year over year: +69%

3. Rochester, New York: 14617

  • Median listing price: $162,000
  • Median days on market: 18
  • Views per property year over year: +44%

4. Melrose, Massachusetts: 02176

  • Median listing price: $644,000
  • Median days on market: 19
  • Views per property year over year: +14%

5. South Portland, Maine: 04106

  • Median listing price: $377,000
  • Median days on market: 21
  • Views per property year over year: +5%

6. Topeka, Kansas: 66614

  • Median listing price: $184,000
  • Median days on market: 19
  • Views per property year over year: +99%

7. Hudson, New Hampshire: 03051

  • Median listing price: $350,000
  • Median days on market: 22
  • Views per property year over year: +45%

8. Worcester, Massachusetts: 01602

  • Median listing price: $318,000
  • Median days on market: 21
  • Views per property year over year: +45%

9. Springfield, Virginia: 22152

  • Median listing price: $553,000
  • Median days on market: 7
  • Views per property year over year: +41%

10. Raleigh, North Carolina: 27604

  • Median listing price: $273,000
  • Days on market: 25
  • Views per property year over year: +81%

Should you invest in one of these markets?

You'll notice the 10 hottest markets today have a few things in common. First, they're hardly bustling metro areas. Some of these cities, in fact, are fairly small, which lends to the trend of homebuyers abandoning crowded urban areas in the wake of COVID-19, instead flocking to ZIP codes where the population is far less dense.

Furthermore, all these areas are seeing homes sit on the market for less than a month. That's good news if you're in the business of house flipping, because the longer a home sits without a buyer, the more money you'll lose.

There are some additional factors you'll want to look into before deciding whether to invest in these markets. First, you'll need to check out what local school districts look like, as school ratings are generally directly tied to property values. Next, you'll need to see how home values have trended over the past 5 to 10 years. Have they steadily increased, or are they suddenly seeing a boom due to the pandemic? The latter could indicate that if you're going to invest in these markets, a fix-and-flip may be your best option.

Of course, the above markets aren't just worth looking into for investors. Homebuyers may want to focus on these ZIP codes too. But those who do may need to gear up for bidding wars, as demand drives competition.

Another thing to remember is that today's hottest ZIP codes may not be the most appealing tomorrow. As such, it pays to keep tabs on where homes are selling the most rapidly, especially if you make a living flipping houses and turning them around for a quick buck.

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