16 large US cities where home prices are expected to soar as sales roar back to life

By: James Faris

5 December 2024 at 09:30

Sunrise over the ocean and beachfront homes in Inlet Beach Florida — Florida is home to some of the hottest housing markets in the US.
Courtesy of the Blankenship Group

Housing market activity should rebound in the year ahead as mortgage rates fall.
Buyers have been waiting for more affordable rates, as have sellers.
Here are 16 cities set for double-digit property price growth, as forecasted by Realtor.com.

Homeowners and buyers may finally start making more deals in 2025, which could lift prices in some markets to unprecedented heights.

A years-long slump in home sales could end soon as mortgage rates fall below 6% and home inventory grows, Leo Pareja, the CEO of real-estate brokerage giant eXp Realty, said in a recent interview.

Pareja, who described his year-ahead housing market outlook as "cautiously optimistic," thinks home sales will rise 10% in 2025. That's far above Realtor.com's recent call for 1.5% sales growth due to a slight slide in mortgage rates.

If more homes come on the market and housing demand also rises, sales would certainly follow suit, though it's less clear what would happen to home prices. Realtor.com is predicting nationwide home prices climb to 3.7% — in line with the rate they've risen since 2012.

Realtor.com forecasted price and sales growth for the 100 largest US real-estate markets. Florida is home to nine of the 25 places expected to see the most price appreciation in 2025.

Below are the 16 metropolitan areas that are set for double-digit home price growth next year, based on Realtor.com's projections. The Sunshine State dominates the list with five names and a near miss with Jacksonville, which is seen rising 9.8%. Sales growth estimates are also listed.

1. Phoenix, Arizona