Redfin defines hot markets as those having homes that sell within two weeks, and it took a look at metro to see where homes were selling at this pace. According to its formula, Denver was the hottest housing market with 69.6% of its homes selling within two weeks.
For the month of April, homes in Denver found a buyer only 10 days after it hit the market. One of the reasons behind some of the hottest markets are heating up is the number of months of inventory on hand in a given metro:
Economists consider a housing market that has six months supply to be balanced between buyers and sellers, with anything between five and seven months considered healthy. The fewer months of supply, the more the market favors sellers. As of April, Seattle had 1.2 months supply, Denver had 1.3 months and Portland had 1.4 months, all extremely low numbers.