I
f you're dreaming of owning a home in 2025, you're in luck! The National Association of Realtors (NAR) has identified the top 10 housing market hotspots poised to outshine the rest of the country in sales next year. These cities have been carefully selected based on strong economic, demographic, and housing factors that signal future market strength.

    After tracking housing trends for years, it's clear that the market can be tricky. However, based on NAR's analysis and my own observations, 2025 is shaping up to be a better year for buyers. The key is to know where to look.

    The NAR didn't just pick these cities out of a hat; they looked at various factors, including affordable home prices, stable or declining mortgage rates, strong job growth, net migration, and fewer "locked-in" homeowners. According to NAR's Chief Economist, Lawrence Yun, important factors common among the top-performing markets in 2025 include available inventory at affordable price points, a better chance of unlocking low mortgage rates, higher income growth for young adults, and net migration into specific metro areas.

    Here are NAR's 10 top housing hotspots for 2025:

    1. Boston-Cambridge-Newton, Massachusetts-New Hampshire

    Average Home Price: $694,494

    Boston is pricey, but it has a good number of starter homes and mortgage rates that tend to be lower than the national average.

    2. Charlotte-Concord-Gastonia, North Carolina-South Carolina

    Average Home Price: Data not available, but 43% of homes are priced below $324,000

    Charlotte has seen 10% job growth in the past five years and a large share of affordable homes.

    3. Grand Rapids-Kentwood, Michigan

    Average Home Price: $271,960

    Grand Rapids offers affordable home prices, averaging around $271,960, with fewer homeowners locked into lower mortgage rates.

    4. Greenville-Anderson, South Carolina

    Average Home Price: $307,315

    Greenville boasts affordable average home prices at $307,315, coupled with homes selling quickly – about 17 days on the market.

    5. Hartford-East Hartford-Middletown, Connecticut

    Average Home Price: $178,696

    The average home price is hard to beat at $178,696, and the city had one of the lowest mortgage rates in 2023.

    6. Indianapolis-Carmel-Anderson, Indiana

    Average Home Price: $223,261

    Indianapolis has a good amount of affordable housing, with nearly 42% of homes priced under $236,000, and strong job growth.

    7. Kansas City, Missouri-Kansas

    Average Home Price: $233,826

    Kansas City has a favorable market due to a generally lower average mortgage rate, lower share of locked-in homeowners, and affordable prices.

    8. Knoxville, Tennessee

    Average Home Price: $350,614

    Knoxville is a hot market, where approximately 50% of those moving in buy homes, with an average home value of $350,614.

    9. Phoenix-Mesa-Chandler, Arizona

    Average Home Price: $414,977

    With an average home value of $414,977, the Phoenix area offers relatively affordable housing and strong job growth.

    10. San Antonio-New Braunfels, Texas

    Average Home Price: $250,834

    San Antonio has a growing job market and the average home price is below the national average.

    Key takeaways:

    * Affordability is key in these markets.

    * Don't expect dramatic price drops; prices will likely stabilize.

    * Mortgage rates will likely stabilize around 6%.

    * Do your research on specific neighborhoods, school districts, and local amenities.

    * Be prepared to move quickly in most of these areas.