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Anyone looking to purchase their forever home may want to consider looking in one of the top housing hotspots of 2025.
The National Association of Realtors (NAR) announced the regions included in its list earlier this month, focusing on economic demographics and housing factors that could impact local markets.
‘Home buyers will have more success next year,’ Lawrence Yun, NAR chief economist and senior vice president of research, said in the report.
‘The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and income growth pave the way for more Americans to achieve homeownership.’
The NAR is also expecting mortgage rates would stabilize around 6 percent in 2025, which the association believes is a ‘new normal.’
The association also predicted that home prices would continue to increase next year, but only by around 2 percent per sale.
Despite the continued price increases, the NAR is expecting around 4.5 million existing home sales nationwide in 2025.
The National Association of Realtors (NAR) announced the regions included in its list of top 10 housing hotspots on December 12
Boston-Cambridge-Newton, Massachusetts-New Hampshire
Various properties in the Boston metro area are in Newton, Massachusetts, and they are pricey compared to other US homes
The Boston-Cambridge-Newton area in Massachusetts is a bit pricey, considering its average home price is $694,494, according to Zillow.
This is well above the $430,010 median sales price in the US during November 2024, calculated by Redfin.
This region also includes portions of New Hampshire, which can be pricey depending on how close cities are to Massachusetts.
Despite the prices, NAR expects the metro area’s local housing market to benefit from stabilizing mortgage rates.
The stabilization could also lead to fewer locked in homeowners – homeowners reluctant to sell houses due to losing low mortgage interest rates.
Boston may also be the best option for anyone looking for starter homes sales agent Bianca D’Alessio claimed there was a low inventory.
Charlotte-Concord-Gastonia, North Carolina-South Carolina
Approximately 43 percent of homes in Charlotte, North Carolina, are priced below $324,000
Various areas in the Carolinas are popular areas for potential homebuyers, and North Carolina was even named one of the best states to buy a house in 2023 by MPA.
It’s also known for its affordable housing with 43 percent of homes in Charlotte, North Carolina, priced below $324,000, according to CBS News.
The average interest rate is also 6.85 percent, which is below the 30-year fixed mortgage national average of 6.89 percent.
Other than the great chances of finding a forever home at an affordable price, both North and South Carolina have experienced 10 percent job growth over the past five years.
Potential homebuyers may need to act fast if they’re interested in Charlotte since its projected average home value is expected to be $388,152 in February 2025, according to GOBankingRates.
Grand Rapids-Kentwood, Michigan
The average cost of a house in Grand Rapids, Michigan, is currently $271,960
Kentwood is considered part of the Grand Rapids, Michigan metro-area than is one of the 2025 hotspots.
The Grand Rapids, Michigan, home prices are affordable, and its housing market average is $271,960, according to Zillow.
Despite it being a 4.4 percent increase compared to this time last year, it is still far below the average US median sales price.
It’s mortgage rates are around 6.9 percent, which is a bit higher than the national average.
However, areas in the Grand Rapids do have mortgage originations with less than 6 percent rates.
Besides these impressive factors, the NAR also predicts there will be fewer lock-in homebuyers and more listings next year.
Greenville-Anderson, South Carolina
The Greenville, South Carolina, housing market average is $307,315 – a 2.6 percent increase compared to this time last year
Like North Carolina, South Carolina is also known to have a variety of affordable housing options.
Greenville has been one of the towns homebuyers keep their eyes on, and the city’s $307,315 housing market average is up 2.6 percent from this time last year.
Potential Greenville homebuyers have also made offers fast, and its listings usually stay for only 17 days.
One thing to potentially watch out for is mortgage rates, which run above the national average likely because of foreclosures in South Carolina, according to MorgageRates.com.
However, the NAR predicted the South Carolina housing market would grow in 2025 because of the 42 percent of starter homes available to buy in Greenville.
Hartford-East-Hartford-Middletown, Connecticut
Hartford is one of three cities in Connecticut featured on Realtor.com’s Hottest Markets list for October 2024
Connecticut cities like Hartford come with very low average home prices compared to other places in the US.
One of the average home prices that’s hard to beat is the $178,696 for a house in Hartford.
Hartford was also one of the three Connecticut cities featured on Realtor.com’s Hottest Markets list for October 2024.
The popular Connecticut city also had one of the lowest mortgage rates among top real estate markets – 6.5 percent.
Indianapolis-Carmel-Anderson, Indiana
About 42 percent of Indianapolis’ housing stock is less than $236,000
Like the Carolinas, the Indianapolis metro area is a big area in terms of job growth and affordability.
About 42 percent of Indianapolis’ housing stock is less than $236,000 but its $223,261 housing market price is below but close to meeting the national average.
It’s also a 2.6 percent increase compared to the area’s housing market cost in December 2023.
‘With fewer «locked-in» homeowners than the national level, this area is likely to see more available inventory as mortgage rates stabilize around 6 percent next year,» according to NAR.
Kansas City, Missouri-Kansas
The average home cost for a property in Kansas City, Missouri, is $233,826
Affordability and competitive financing are the factors that will make Kansas City, Missouri, a top performer in the housing market next year, according to NAR.
The area usually has a lower average mortgage rate with a small amount of locked-in homeowners.
Because of its $233,826 average house cost, one in three millennials can afford to live in the Kansas City metro area, according to CBS News.
Its average price was a whopping 3.1 percent increase compared to this time last year but it is still affordable.
As of October 2024, 45.4 percent of all the city’s sales were under the list price.
Knoxville, Tennessee
Knoxville, Tennessee, is known for its affordable housing market and its average home value is $350,614
Tennessee is known for being a benefit for first-time homebuyers due to its relatively low house prices, especially in Knoxville.
The average value of a home in Knoxville is $350,614, which is nearly $100,000 lower than the average in Nashville, Tennessee.
Homebuyers looking for their forever home in the area can choose one of over 1,500 properties that are currently on the market.
Purchasers may also have a good chance of buying a home since 58.3 percent of Knoxville sales were under the listing price.
Phoenix-Mesa-Chandler, Arizona
Phoenix Arizona’s average home value is $414,977, which is less than $20,000 away from meeting the national average
Phoenix, Arizona, just barely missed the nation’s average median sale price.
The city’s average home value is $414,977 – less than $20,000 away from meeting the national average.
However, the region is known to have affordable housing stock and a lower cost of living and job growth compared to other places in the western US.
‘Demographic shifts and economic expansion has established Phoenix as a prosperous and dynamic market,’ according to NAR.
California residents have also been moving to the Phoenix metro area because of the affordability and job growth, according to CBS News.
However, residents looking to purchase a home Phoenix currently have over 4,700 properties on the market to choose from.
San Antonio-New Braunfels, Texas
The average housing price in San Antonio, Texas, is $250,834 – a 2.8 percent decrease compared to this time last year
The San Antonio-New Braunfels region recently became one of a few major housing markets to decrease residential real estate costs over the past year.
San Antonio however is a city homebuyers could be interested in next year since the area has had a strong job growth over the past few years.
San Antonio’s average housing price is $250,834, which is a shocking 2.8 percent decrease compared to this time last year.
It also has a massive sales inventory of over 7,100 and 62.2 percent of its sales have been under listing price as of October 2024, according to Zillow.
