CNBC

The housing market will still be tough for homebuyers this year, thanks to high prices and a persistent supply shortage.

But the National Association of REALTORS® (NAR), predicts mortgage rates stabilize near 6% in 2025.

At least ten cities will become “housing hot spots,” according to a recent NAR report, benefitting from robust job growth, ample housing stock and more.

“Important factors common among the top performing markets in 2025 include available inventory at affordable price points, a better chance of unlocking low mortgage rates, higher income growth for young adults and net migration into specific metro areas,” NAR’s chief economist Lawrence Yun said in a statement.

NAR projects 4.5 million home sales nationwide in 2025, with a median price tag of $410,700. Houses in most of the cities on NAR’s hot list, however, average well below that.

Where will the next homebuying boom happen? According to NAR, all eyes should be on the South, Midwest and New England.

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