With home prices and mortgage rates soaring this year, despite a recent deceleration, homebuyers are getting creative in their purchases.
“Our list of top 10 zip codes for 2022 shows a mix of homebuyers eager to find value in the vicinity of high-priced metros, and buyers opting for high-priced zips in low-cost metros,” economists at real estate information service Realtor.com, wrote in a report.
“These hot zips offer considerable bang for your buck, with larger-than-average homes at lower-than-average prices,” Realtor.com said.
To measure different cities, Realtor.com looked at market demand, as measured by unique viewers per property on Realtor.com, and at the number of days a listing remains active on Realtor.com.
For a bit of background on the housing market nationally, in terms of pricing, the median existing-home sales price totaled $403,800 in July, up 10.8% from a year earlier, according to the National Association of Realtors.
Meanwhile, the 30-year fixed-rate mortgage averaged 5.13% in the week through Aug. 18, up from 2.86% a year ago, according to Freddie Mac.
These Homes Are Close to Bigger Cities
As for the hot zip codes, “many are within regular or occasional commuting distance of high-cost metros and priced lower than their immediate surroundings, enabling buyers to marry location and value,” the Realtor.com economists said.
To be sure, the bargains may not last. “Zips at the top of the list saw demand drive listing prices up an average 18.6% year-over-year in June, exceeding the U.S. average 16.9% price growth,” the economists said.
The Northeast accounted for eight of the top 10 zip codes, with New England occupying six of those eight slots. The Midwest and South each placed one zip code in the top 10. The West got shut out because of its high home prices, the economists said.
The Top-10 Places to Get a Deal on a Home
Here’s the list, in order of ranking
- Brighton, N.Y., a suburb of Rochester, N.Y. Median home listing price (as of June): $275,000.
- Nashua, N.H., part of the Manchester, N.H.-Nashua metropolitan area. Median home listing price: $536,000.
- Worthington, Ohio, a suburb of Columbus, Ohio. Median home listing price: $467,000.
- Derry, N.H., which is 42 miles from Boston. Median home listing price: $447,000.
- Windham, Maine, a suburb of Portland, Maine. Median home listing price: $505,000.
- Bethlehem, Pa., a part of the Allentown, Pa.-Bethlehem metropolitan area. Median home listing price: $424,000.
- Johnson City, Tenn., its own metropolitan area. Median home listing price: $329,000.
- Hooksett, N.H., a suburb of Concord, N.H. Median home listing price:$482,000.
- North Attleboro, Mass., a suburb of Providence, R.I. Median home listing price:$587,000
- Auburn, Maine, part of the Lewiston, Maine-Auburn metropolitan area. Median home listing price: $267,000.
