T
he National Association of REALTORS' (NAR) Real Estate Forecast Summit revealed that the housing market is expected to rebound in 2025, offering better opportunities for homebuyers who have been frustrated with low inventory and high prices. Economists predict upticks in new listings, sales, and home prices, but at a more moderate pace of 2% growth.
NAR's list of top 10 markets for housing in 2025 includes cities in the South and Midwest, where factors such as affordable inventory, low mortgage rates, higher income growth, and net migration are expected to drive demand. Charlotte, North Carolina, tops the list due to its strong job market, soaring population, and greater housing affordability.
Other top-performing markets include Knoxville, Tennessee; Boston-Cambridge-Newton, Massachusetts-New Hampshire; Grand Rapids-Kentwood, Michigan; Greenville-Anderson, South Carolina; Hartford-East Hartford-Middletown, Connecticut; Indianapolis-Carmel-Anderson, Indiana; Kansas City, Missouri-Kansas; Phoenix-Mesa-Chandler, Arizona; and San Antonio-New Braunfels, Texas.
To compile its list, NAR considered several key indicators of a strong housing market, including:
* Fewer locked-in homeowners who are hesitant to trade in their low mortgage rates for today's higher rates
* Faster job growth that translates to higher home sales and buyer confidence
* Higher net migration into areas with growing populations
* More households reaching the age where they're likely to buy a home
* A growing inventory of starter homes at affordable price points
* Fast home price appreciation, indicating strong local demand
* More movers who purchase homes, signaling long-term growth and stability
* Lower mortgage rates that improve housing affordability
* Financially secure renters who are motivated to buy due to stabilizing home prices and mortgage rates
These indicators will drive demand in the top 10 markets, which outperformed national averages for many of these sales drivers.
