Snapshot: Zillow’s Hottest Markets of 2023

Back in January, Zillow researchers forecasted the hottest markets of 2023. They ranked the markets based on expected home value growth, projected change in owner-occupied households and job growth compared to new construction.

Markets that ranked well in those metrics are likely to see continued buyer-side competition for desirable homes, especially considering the nationwide drought of new listings.

With mortgage rates see-sawing, inflation showing signs of cooling (again), and sales volume down significantly — even compared to pre-pandemic — let’s look at a snapshot of recent data points in these markets.

Checking in on this year’s 10 hottest market predictions

10. Philadelphia

Philadelphia saw the median sale price spike in June of 2022, but the Zillow Home Value Index showed that it grew only slightly month-over-month (MoM) as of March. About one third of homes sold over list price in February (the latest data available) compared to 43% last year. 

Latest numbers:

March Zillow Home Value Index: $329K, up 1.1% from the previous month and 4.9% from the previous year.

March Median List Price: $295K, up 1.1% from the previous month.

March Days to Pending: 8 days, versus 24 days pre-pandemic.

9. Atlanta

Atlanta fell from last year’s spot at number six on this list. Home prices have also fallen from recent highs in the last few months. This metro area of more than 6.1 million saw the Zillow Home Value Index rise 1.7% year-over-year in March, down from the peak of 25.9% last April.

Latest numbers:

March Zillow Home Value Index: $363K, up 0.6% from the previous month, but up 1.7% from the previous year.

March Median List Price: $362K, up 2.8% from the previous month.

March Days to Pending: 13 days.

n8. Miami

Miami saw more than a 10% home value increase in 2022, according to the Zillow Home Value Index. Miami area markets have shown a regional resilience that’s corroborated by Zillow data (see below). One way the area is trending along with the nation? The percentage of homes that sold above list price is down 16.9 percentage points from last year.

Latest numbers:

March Zillow Home Value Index: $453K, up 0.9% from the previous month, and 8.3% from the previous year.

March Median List Price: $541K, down 0.2% from the previous month.

March Days to Pending: 28 days, versus 40 days pre-pandemic.

7. Kansas City

The market here is representative of an overall 2023 Midwest surge that also features its suburb, Prairie Village, and nearby Wichita, Kansas, among other regional hotspots. In March, Kansas City homes went into contract in an average of four days, faster than any other major metro.

Latest numbers:

March Zillow Home Value Index: $285K, up 1.6% from the previous month, and 4.8% from the previous year.

March Median List Price: $270K, up 3.6% from the previous month.

March Days to Pending: 4 days, versus 12 days pre-pandemic.

6. Jacksonville

Jacksonville, Florida, has seen a slowdown since 2022, much like the rest of the country. Still it’s the northernmost Florida entry on this list of hottest markets, which Florida markets dominated in 2022. The median list price was up 4% year-over-year in March.

Latest numbers:

March Zillow Home Value Index: $352K, up 0.4% from the previous month, but up 3.5% from the previous year.

March Median List Price: $364K, up 0.7% from the previous month.

March Days to Pending: 34 days, the same as pre-pandemic.

5. Nashville

Music City hit a peak of 29.3% annual home price growth in April 2022, but that’s been tempered lately along with other previously hot markets, as affordability becomes more of a barrier to potential buyers. Zillow forecasts -0.2% home value growth over 2023. The share of homes that sold above list price in February was 14%, compared to a massive 53% last year. 

Latest numbers:

March Zillow Home Value Index: $422K, up 0.3% from the previous month and up 0.9% from the previous year.

March Median List Price: $471K, up 1.4% from the previous month.

March Days to Pending: 13 days, versus 17 days pre-pandemic.

n4. Dallas

Dallas is the westernmost market on this list and beat out Austin, which took tenth place last year. The percentage of homes that sold above list price in February was down nearly 40 percentage points year over year. 

Latest numbers:

March Zillow Home Value Index: $367K, up 0.6% from the previous month, but down 0.4% from the previous year.

March Median List Price: $400K, up 0.9% from the previous month.

March Days to Pending: 11 days, versus 24 days pre-pandemic.

n3. Pittsburgh

Persistent affordability has helped Pittsburgh become one of the country’s hottest housing markets. Pittsburgh buyers can expect to typically spend about 21% of their income on monthly mortgage payments (assuming a 20% down payment) — well under the 31.3% of income buyers nationally can expect to pay.

Latest numbers:

March Zillow Home Value Index: $193K, up 0.3% from the previous month, and down 0.1% from the previous year.

March Median List Price: $193K, up 1.7% from the previous month.

March Days to Pending: 7 days, versus 27 days pre-pandemic.

n2. Cleveland

Cleveland soared from outside 2022’s top 10 to land in second place this year. Like Kansas City and Pittsburgh, homes are going pending in almost no time in Cleveland — just six days in March.

Latest numbers:

March Zillow Home Value Index: $207K, up 0.9% from the previous month, and up 5.1% from the previous year.

March Median List Price: $190K, up 4% from the previous month.

March Days to Pending: 6 days, versus 35 days pre-pandemic.

1. Charlotte

While it was predicted to be the hottest market in 2023, activity may be less than what buyers and sellers saw during the pandemic. Charlotte jumped up from number five in 2022.

Latest numbers:

March Zillow Home Value Index: $361K, up 0.6% from the previous month, and up 2.1% year-over-year.

March Median List Price: $362K, up 1% from the previous month.

March Days to Pending: 10 days, versus 11 days pre-pandemic.

Looking for more insights? Check in with Zillow Premier Agent Resources.