The National Association of Realtors (NAR) has unveiled its list of the Top 10 Housing Hot Spots for 2025, highlighting cities that are expected to thrive in the upcoming housing market. The report, released on December 14, 2024, indicates that regions in Appalachia, particularly the Carolinas, Tennessee, and Indiana, are leading the way [05b0e601].
As the housing market evolves, mortgage rates are anticipated to stabilize around 6%, with a projected 4.5 million existing homes expected to be listed in 2025. The median price of an existing home is forecasted to reach approximately $410,700, reflecting ongoing trends in the real estate market [05b0e601].
The top 10 cities identified by the NAR include Boston-Cambridge-Newton, Charlotte-Concord-Gastonia, Grand Rapids-Kentwood, Greenville-Anderson, Hartford-East Hartford-Middletown, Indianapolis-Carmel-Anderson, Kansas City, Knoxville, Phoenix-Mesa-Chandler, and San Antonio-New Braunfels. These selections were based on various indicators such as job growth, millennial renters, net migration, and homeownership trends [05b0e601].
In the UK, house prices have recently surged by 3.7% year-on-year in November 2024, marking the fastest growth since November 2022, with a month-on-month rise of 1.2% [d48365da]. Nationwide's Chief Economist, Robert Gardner, noted that while the housing market shows signs of recovery, affordability remains a critical issue for many buyers. He anticipates that changes to stamp duty could influence market activity in early 2025 [d48365da].
In the U.S., existing-home sales also saw an increase of 3.4% in October 2024, with the median sale price rising by 4% year-over-year to $407,200 [a73a50d0]. Despite the positive trends, challenges persist in both markets, with affordability being a significant barrier for many potential buyers [d48365da].
As the economic landscape continues to evolve, both the UK and U.S. housing markets are navigating the complexities of inflation, interest rates, and changing buyer behaviors, with predictions of recovery and growth in the coming years [c2df47a9].