Ten Housing Hot Spots
After a downturn in home sales this year, the housing market is expected to turn around in 2025 and offer greater opportunities for prospective home buyers.
NAR announced its forecast for 2025, predicting upticks in new listings, home sales and home prices; however, price increases are expected to settle in at a more moderate 2% rise.
Economists said some markets are likely to fare better than others. NAR released its list of 10 hot spots for housing in 2025. According to NAR Chief Economist Lawrence Yun “Important factors among these top cities include
Available inventory at affordable price points,
A better chance of unlocking low mortgage rates,
Higher income growth for young adults and
Migration into specific areas,”
~NAR Chief Economist Lawrence Yun.
The following are the top 10 markets that took spots on NAR’s list of housing hot spots.
NAR considered economic, demographic and housing factors that economists believe will serve as strong predictors of home sales in the new year,
a few of these include
Fewer locked-in homeowners. Homeowners who locked in a low 2% to 3% mortgage rate
Faster job growth. Job growth often translates to higher home sales.
High migration. increased sales activity often occurs in places experiencing an influx of new residents.
More households reaching home buying age. Households between 35 and 40 years old often are considered a key demographic for homeownership. The typical first-time home buyer is 38 years old, according to NAR’s research. Areas with a larger share of households entering this age bracket may see strong demand for homes. And
Financially secure renters. Places where young adults are renting but can afford homeownership may see an increase in demand in 2025, as home prices and mortgage rates are expected to stabilize.
If you would like to learn what’s happening locally in your area, it is always important to reach out to your local real estate expert to give you the most up-to-date trends, pricing and inventory. Feel free to connect with me for market information in both WA and AZ.
~National Association of Realtors
