T
he housing market may face challenges due to high mortgage rates, but some cities are expected to experience explosive sales growth in 2025. According to Realtor.com's Top Housing Markets for 2025, home sales in these markets are projected to rise between 13.5% and 27.1% compared to the previous year.

    These top markets share common characteristics, including a regional concentration in the South and West, recent sales growth, abundant inventory driven by new construction, and younger populations with military or international ties. Many of these cities also have lower costs of living and benefit from flexible work arrangements.

    Government-backed loan programs, such as VA loans and FHA loans, are particularly valuable to aspiring homeowners in these markets, enabling them to access homeownership with lower down payments. Realtor.com Chief Economist Danielle Hale notes that while affordability remains a challenge, these programs help create opportunities for younger families with military or international connections.

    The top 10 markets for 2025 are all located in the South and West, with Colorado Springs, CO, topping the list. Other notable cities include Miami, FL; Virginia Beach, VA; Richmond, VA; McAllen, TX; El Paso, TX; Little Rock, AR; Greensboro, NC; Washington, DC; Harrisburg, PA; and Baltimore, MD.

    Home sales are expected to spike in June 2025, with the top 20 cities forecasted for year-over-year increases ranging from 13.5% to 27.1%. Some of the key markets include:

    * Colorado Springs, CO: +27.1%

    * Miami, FL: +24%

    * Virginia Beach, VA: +23.4%

    * Richmond, VA: +21.6%

    * McAllen, TX: +19.8%

    * El Paso, TX: +19.3%

    These cities offer a range of attractions and benefits, from stunning natural scenery to affordable housing options and vibrant cultural scenes.