Springfield ended 2024 as one of the most active and desirable housing markets in the United States, according to recent data from Realtor.com. The area’s popularity with homebuyers reflects high demand and significant interest, marking Springfield as an attractive place to buy property. This recognition is based on Springfield’s notable ranking on Realtor.com’s Market Hotness Index, which tracks real estate activity across the country.
Realtor.com’s Hotness Index: What It Means for Springfield
Realtor.com’s Market Hotness Index ranks housing markets based on supply and demand factors, such as the speed at which homes are sold and the interest they generate. Springfield scored an impressive 85.91 out of 100 on this index, earning it the 26th spot nationally. The high score signifies strong buyer interest in Springfield, with homes selling faster than in many other parts of the country. This ranking suggests that Springfield is an active market where homes do not linger unsold for long, highlighting the area’s appeal to buyers.
Homes in Springfield: Listing Price and Days on Market
A closer look at Springfield’s housing data reveals more details about the market. Homes in the area typically stayed on the market for an average of 49 days in 2024. While this represents a slight increase of almost 9% from the previous year, it still points to relatively quick sales. Even with this increase, home prices showed resilience, with the median listing price rising 2.4% from 2023. By the end of 2024, the median listing price in Springfield reached $168,950. August saw the highest listing prices of the year, with a median price peaking at $195,000, indicating that demand remained strong through the summer months.
How Springfield’s Ranking Improved Throughout the Year
In addition to ending the year strong, Springfield’s housing market climbed in popularity as the year progressed. In November 2024, Springfield was ranked 28th on the Market Hotness Index, with a score of 85.74. By December, it had moved up two spots to 26th, with a slight increase in its index score to 85.91. This improvement suggests that interest in Springfield’s housing market not only remained steady but even grew towards the end of the year. The area’s increasing desirability highlights a trend of steady demand, making Springfield an appealing choice for both buyers and investors.
Other Strong Markets in Illinois: Rockford and Peoria
Springfield isn’t the only Illinois market that performed well in 2024. Rockford, Illinois, demonstrated an even stronger performance, securing the fourth spot nationally with an impressive score of 98.15. This high score places Rockford among the very top markets in the U.S., showing that it’s one of the most competitive places to buy property. Peoria, Illinois, also showed significant momentum. It tied for the 15th position alongside Canton-Massillon, Ohio, with a score of 88.42. Notably, Peoria jumped up 14 spots from its ranking in November, when it was positioned right behind Springfield at 29th. This upward movement highlights Peoria’s growing appeal, reflecting a vibrant housing market in several Illinois cities beyond Springfield.
High-Interest Rates and Low Inventory Shape Springfield’s Market
While Springfield’s housing market thrived, broader factors influenced home-buying activity. Nationwide, high interest rates made mortgages more expensive, which often limited the number of people able to purchase homes. Additionally, the available supply of homes in many areas, including Springfield, remained low, which can drive up demand and prices. This combination of high interest rates and limited housing stock has made Springfield’s ranking even more noteworthy, as demand remained high despite these challenges. In Sangamon County, where Springfield is located, 2024 was a challenging year for some buyers due to these market conditions, yet the area’s real estate market remained strong overall.
Top 5 Hottest Housing Markets Nationwide
Looking at the national level, Springfield is in good company among the top-performing markets in the U.S. Realtor.com’s data placed Rochester, New York, as the hottest housing market nationwide with a score of 98.99, closely followed by Springfield, Massachusetts. Other top markets included Manchester-Nashua, New Hampshire; Rockford, Illinois; and Hartford-West Hartford, Connecticut. These areas saw high demand, relatively quick sales, and competitive listing prices.
Here are the top 5 hottest housing markets according to Realtor.com:
- Rochester, New York – Known for its affordable housing and strong local economy, Rochester’s market was red-hot in 2024.
- Springfield, Massachusetts – A bustling area with appealing real estate opportunities, Springfield ranked second.
- Manchester-Nashua, New Hampshire – The proximity to Boston has made this area highly attractive for those looking to live near a major city.
- Rockford, Illinois – With a strong showing on the index, Rockford is one of the top markets in the Midwest.
- Hartford-West Hartford, Connecticut – This area rounded out the top five with steady interest from buyers.
These rankings indicate that while larger cities often see high housing demand, smaller markets like Springfield can also thrive and become real estate hotspots.
