As home prices continues to stabilize, more buyers are expected to return to the housing market in the new year. But some places may be favored more than others, according to the National Association of Realtors (NAR). In a recent report, NAR identified 10 housing markets that are expected to be hot spots for buyers in 2025. All areas offer a favorable financing environment, either with lower proportions of locked-in homeowners or lower mortgage rates. These markets include Boston, Charlotte, N.C., Grand Rapids, Mich., Greenville, S.C., and Hartford, Conn., among others.
NAR expects the Federal Reserve to maintain a gradual approach to easing monetary policy in 2025. While concerns about federal deficits and rising public debt may cap the extent of those rate cuts, borrowing costs are anticipated to stabilize overall, offering some relief to prospective buyers. NAR forecasts that mortgage rates will stabilize near 6% in 2025, likely establishing a new normal. At this rate, more buyers are expected to come back to the market, boosting activity, and the association projects 4.5 million existing-home sales in 2025. Read more
