This interactive housing market map shows where sellers—or buyers—have the most power right now

Today's newsletter is brought to you by Roots!

Roots has delivered a 51.5% return since they opened their fund in July 2021, while helping its renters save and invest $501,222 in the process.*

How does it work?

1. Invest with Roots (starting at just $100)

2. Roots handles everything—from purchasing to property management

3. Renters build equity by paying rent on time and caring for the property… Which lowers turnover costs, minimizes vacancies, and yields some of the industry’s best returns.

The future of real estate investing is here. And it’s waiting for you. Join 6,800+ investors.

Use code “RESI” to add $20 to your first investment

For today’s piece, ResiClub visualized Zillow’s Market Heat Index.

A higher score indicates a hotter metro-level housing market where sellers have more power. A lower score indicates a colder metro-level housing market where buyers have more power.

According to Zillow:

• Score of 70 or above = strong sellers market

• Score from 55 to 69 = sellers market

• Score from 44 to 55 = neutral market

• Score from 28 to 44 = buyers market

• Score of 27 or below = strong buyers market

Among the 200 largest metro area housing markets, these 10 are the HOTTEST markets, where sellers have the most power:

1. Rochester, NY —> 154 reading

2. Syracuse, NY —> 102

3. Buffalo, NY —> 95

4. Albany, NY —> 88

5. Hartford, CT —> 88

6. San Jose, CA —> 84

7. Springfield, MA —> 82

8. Binghamton, NY —> 80

9. Norwich, CT —> 79

10. Manchester, NH —> 78

Among the 200 largest metro area housing markets, these 10 are the COLDEST markets, where buyers have the most power:

1. Beaumont, TX —> 13 reading

2. Gulfport, MS —> 14

3. Longview, TX —> 23

4. Lubbock, TX —> 23

5. Brownsville, TX —> 26

6. Macon, GA —> 27

7. Waco, TX —> 30

8. Gainesville, FL —> 30

9. Naples, FL —> 31

10. Cape Coral, FL —> 33

Click here to view an interactive of the map below

The hottest markets (i.e., where sellers have more power) also happen to be those where active inventory remains tightest—furthest below pre-pandemic levels—and where home price growth is most elevated.

The coldest markets (i.e., where buyers have more power) are those where active inventory has increased the most over the past two years, and where home price growth is the weakest or softest.

As ResiClub has well documented, housing markets in the Northeast, Midwest, and Southern California have been stronger and tighter this year, while many areas in the Sun Belt, particularly resale markets around the Gulf, have been softer/weaker.

Unlike many Sun Belt housing markets, many Northeast and Midwest markets have lower levels of homebuilding. As new supply becomes available in Southwest and Southeast markets, and builders use affordability adjustments like buydowns to move it, it has created an additional cooling effect in the resale market. The Northeast and Midwest don’t have that same level of new supply, so resale/existing homes are pretty much the only game in town.

Another factor driving the bifurcation is that some pockets of the Sun Belt and Mountain West experienced even greater home price growth during the Pandemic Housing Boom, which stretched fundamentals too far beyond local incomes. Once pandemic-fueled migration slowed, and rates spiked, it became an issue in places like Austin and Punta Gorda.

6.40% —> Today’s average 30-year fixed mortgage rate as calculated by Mortgage News Daily

Range this year: 6.34% (lowest reading) ←→ 7.52% (highest reading)

255 bps —> Today’s spread between the 10-year Treasury yield and the 30-year fixed mortgage rate

*Information contained herein, although believed accurate and compiled from credible sources, is not guaranteed. There can be no assurance the business objectives of the Company will be achieved. Investors may lose all or part of their investment and distributions with respect to such investment are not guaranteed. Past performance is not indicative of future returns.