T
he American real estate market has faced significant challenges in recent years, including dwindling home production, low housing inventory, and rising mortgage rates that have depressed home sales. However, Realtor.com is optimistic about the market's prospects for 2025, citing a national housing forecast that points to improving conditions.

    According to the forecast, lowering mortgage rates, increased housing production, and higher housing inventories are expected to boost the market. The West and South regions are likely to see significant growth, with many top housing markets emerging in the Sun Belt. The Midwest and East Coast will also experience strong developments.

    Some of the cities that are expected to perform well include Norfolk, Newport News, which is projected to see a 23.4% increase in existing home sales year-over-year, along with a 6.6% rise in median sale price. Other notable cities include Kissimmee, Sanford, High Point, Chapel Hill, Concord, Gastonia, and Charlotte.

    These markets are expected to experience significant growth in both existing home sales and prices, with some areas seeing combined increases of over 25%. While the market is expected to improve overall, it's essential for potential buyers to research and understand local conditions before making a decision.