Here's where the hottest and coldest housing market is in the Central Valley

FRESNO, Calif. (KFSN) -- Bankrate has ranked 212 cities for its Housing Heat Index.

Several factors were considered in looking for the country's hottest markets.

"So essentially, where are we seeing a combination of tight inventory, fast-selling homes and rising home values," Bankrate Data Analyst Alex Gailey said. "I would say that the biggest driver in our housing heat index is home appreciation."

Gailey says two years ago, Fresno and Visalia ranked among the hottest markets in the U.S., with Fresno ranked at No. 93 and Visalia ranked No. 89.

Now, both cities rank among the coldest markets. Fresno has dropped to the 146th spot, and Visalia even lower at 173.

"I would characterize the Fresno housing market as being stuck in a post-pandemic rut," Gailey said. "Home values have appreciated about 3% year over year as of Q1 in Fresno. That is down from 9% in 2023 at the same time."

Merced was the highest-ranking local city in the Heat Index at No. 89, a far cry from 2023 when it was in the 174th spot.

"In 2025, home values appreciated 6% year over year. In 2023, that was at 6.7%. So, it's dropped a little bit, but not by much," Gailey said.

"A typical listing has sat on the market for about 45 days in Merced, but that is 12 days shorter than it was two years ago. There appears to be steady buyer demand in Merced, while buyer demand in Fresno has been more stagnant," he continued.

But Gailey notes California stands out among other states because of its affordability challenge.

"One, significantly higher housing costs and two, extremely severe housing shortages," he said.

In a wider look across the country, New Haven, Connecticut, was ranked the hottest housing market. Meanwhile, four of the coldest markets were in Florida.

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