Homeowners and buyers may come back to the housing market in 2025, especially if mortgage rates continue falling. This rise in demand could lift prices in some metro areas.
Home sales are expected to rise roughly 1.5% next year for an annual tally of 4.07 million, as forecasted by Realtor.com. Home prices are also expected to climb about 3.7% in the same period.
That said, home prices will climb by varying rates depending on the location. Here are the seven metro areas expected to see the highest price growth in 2025.
1. Phoenix, Arizona
As of October, the median home listing price in the metro area is $499,000 while the median sale price of homes is $460,000. That marks a 3.1% decline in prices year-over-year.
In 2025, home prices are expected to grow by 13.2% while home sales growth is expected to rise by 12.2%.
2. Colorado Springs, Colorado
Colorado Springs has a median listing price of $465,000 and a median sale price of $440,000. These figures are estimated to grow 12.7% and 27.1%, respectively, in 2025.
3. Tucson, Arizona
The median listing price in Tucson is $375,000 while the median sale price is $346,000, as of October. Home prices are expected to climb by 12.4% while home sales are expected to rise by 12.5%.
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4. Boise City, Idaho
In Boise, the median listing price is $554,900 while the median sale price is $472,500. Next year, home prices in the area may grow by 12.3% while the sales growth is estimated to be around 2%.
5. Las Vegas, Nevada
The median listing price in Las Vegas is $460,000 while the median sale price is $436,500. Home prices are estimated to grow by 12.3% while sales growth may climb by 5.5% in 2025.
6. Orlando, Florida
The median listing price of homes in Orlando is $389,900 while the median sale price is $397,000. Home prices may grow by 12.1% while home sales would increase by 15.2%.
7. Ogden, Utah
The median listing home price in Ogden is $404,900 while the median sale home price is $405,400. Home prices may grow by 11.8% while sales could increase by 2.2% next year.
