{"id":1508147,"date":"2024-12-16T10:00:00","date_gmt":"2024-12-16T15:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1508147"},"modified":"2024-12-16T10:00:00","modified_gmt":"2024-12-16T15:00:00","slug":"realtor-association-reveals-top-10-hottest-us-housing-markets-for-2025","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/realtor-association-reveals-top-10-hottest-us-housing-markets-for-2025\/1508147\/","title":{"rendered":"Realtor Association Reveals Top 10 Hottest US Housing Markets For 2025"},"content":{"rendered":"

Realtor Association Reveals Top 10 Hottest US Housing Markets For 2025<\/span><\/p>\n

\n

Authored by Naveen Athrappully via The Epoch Times<\/a> (emphasis ours),<\/em><\/p>\n

The National Association of Realtors (NAR) listed housing markets in the United States expected to perform well next year, noting that financing conditions in these regions are \u201cfavorable\u201d for buyers.<\/strong><\/p>\n

A for sale sign displayed in front of a home in Miami, Fla., on Feb. 22, 2023. Joe Raedle\/Getty Images<\/em><\/a><\/p>\n

Among the top 10 housing markets for 2025, the southern United States led with four markets, and the Midwest with three,<\/strong> according to a Dec. 12 statement<\/a> from the group.<\/p>\n

\u201cImportant 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,\u201d said Lawrence Yun, chief economist at NAR.<\/p>\n

Hottest markets for 2025, according to the company:<\/strong><\/p>\n

Boston-Cambridge-Newton, Massachusetts-New Hampshire
\n\tCharlotte-Concord-Gastonia, North Carolina-South Carolina
\n\tGrand Rapids-Kentwood, Michigan
\n\tGreenville-Anderson, South Carolina
\n\tHartford-East-Hartford-Middletown, Connecticut
\n\tIndianapolis-Carmel-Anderson, Indiana
\n\tKansas City, Missouri-Kansas
\n\tKnoxville, Tennessee
\n\tPhoenix-Mesa-Chandler, Arizona
\n\tSan Antonio-New Braunfels, Texas<\/p>\n

\u201cAll areas offer a favorable financing environment\u2014either with lower proportions of locked-in homeowners or lower mortgage rates. In addition, most of these markets outperform the national average in at least six of NAR\u2019s 10 criteria,\u201d the association said.<\/p>\n

\u201cLocked-in\u201d refers to homeowners with low mortgage rate loans and are disincentivized from selling properties amid the current higher rates.<\/strong><\/p>\n

NAR expects mortgage rates to be around 6 percent next year, becoming the \u201cnew normal\u201d that triggers more buyers to enter the market. Home prices are predicted to grow by a slower 2 percent rate. Inventory levels are expected to increase.<\/p>\n

\u201cHome buyers will have more success next year<\/strong>,\u201d Yun said. \u201cThe worst of the affordability challenges are over as more inventory, stable mortgage rates, and continued job and income growth pave the way for more Americans to achieve homeownership.\u201d<\/p>\n

Top 10 Markets<\/h2>\n

The cities of Boston, Cambridge, and Newton, located in Massachusetts and New Hampshire are expected to see \u201csignificant benefits from stabilizing mortgage rates,\u201d according to NAR<\/a>. The region has fewer locked-in homeowners. As such, when mortgage rates stabilize at 6 percent, more owners may be willing to sell, thereby easing the supply situation.<\/p>\n

The cities of Charlotte, Concord, and Gastonia in North Carolina and South Carolina have seen \u201cimpressive 10 percent job growth over the last five years and strong migration gains,\u201d <\/strong>the NAR said.<\/p>\n

\u201cMore than 11 percent of the households are set to reach the age of 35 to 40 within the next five years, ensuring sustained demand for housing.\u201d<\/p>\n

Housing demand in Grand Rapids and Kentwood, Michigan, are expected to be strong given that more than one-third of millennial renters are financially able to buy homes. Plus, 12 percent of households are calculated to enter \u201cprime homebuying age\u201d over the coming five years.<\/p>\n

The cities of Greenville and Anderson in South Carolina are seeing a \u201cstrong\u201d net migration rate. <\/strong>The affordability situation is also favorable to buyers, with the average mortgage rate last year \u201cwell below the national average,\u201d the association noted.<\/p>\n

The financial situation in Connecticut\u2019s Hartford, East Hartford, and Middletown areas is \u201cfavorable.\u201d The region had an average mortgage rate of 6.5 percent in 2023, which NAR noted was \u201cone of the lowest among the top markets.\u201d<\/p>\n

More than 40 percent of housing stock in the cities of Indianapolis, Carmel, and Anderson in Indiana costs less than $236,000, <\/strong>making the location attractive for young families and individuals seeking to buy their first home. The area also has fewer \u201clocked-in\u201d owners compared to the national average.<\/p>\n

Kansas City, which straddles Missouri and Kansas, benefits from two key factors\u2014lower proportion of \u201clocked-in\u201d homeowners and lower average mortgage rate. One in three millennial renters are able to afford homes in this area, NAR said.<\/p>\n

Strong migration trends favor Knoxville, Tennessee, with almost 50 percent of new movers seeking to buy a house. Moreover, fewer borrowers in the region have properties with mortgage rates below 6 percent, diminishing the lock-in effect.<\/p>\n

The Phoenix, Mesa, Chandler metro area in Arizona is a key destination for people moving out of California, given the region\u2019s \u201ccomparatively lower cost of living and housing affordability,\u201d <\/strong>NAR said.<\/p>\n

Last year, borrowers in San Antonio and New Braunfels, Texas secured mortgages at rates of 6.4 percent, well below the national average. \u201cThis suggests that buyers in the area benefit from a combination of local market dynamics that lead lenders to assess lower risk in this area,\u201d NAR said. The area also has seen strong job growth.<\/p>\n

Mortgage Rate Challenge<\/h2>\n

The average weekly rate<\/a> on a 30-year fixed-rate mortgage has remained above 6 percent for more than two years, according to data from Freddie Mac. For this year, rates peaked at 7.22 percent in May and had come down to 6.08 percent by late September, only for it to rise once again.<\/p>\n

Presently, rates are hovering at 6.6 percent, after declining for the third consecutive week. \u201cThe combination of mortgage rate declines, firm consumer income growth, and a bullish stock market have increased homebuyer demand in recent weeks,\u201d said<\/a> Sam Khater, chief economist at Freddie Mac.<\/p>\n

\u201cWhile the outlook for the housing market is improving, the improvement is limited given that homebuyers continue to face stiff affordability headwinds<\/strong>.\u201d<\/p>\n

In a recent commentary<\/a>, Lisa Sturtevant, chief economist at research company Bright MLS, said it would have \u201cseemed preposterous\u201d to expect homebuyers to be enthusiastic about interest rates being at mid-6 percent. However, \u201cexpectations are being reset.\u201d<\/p>\n

\u201cFor a long time after mortgage rates bottomed out in 2021, consumers\u2019 expectations had been anchored to the notion of a mortgage rate somewhere in the 3s.\u201d<\/p>\n

But since interest rates have largely moved around the 7 percent level this year and the chances of rates coming down to 3 percent any time soon is \u201czero,\u201d prospective homebuyers are now much more open to rates at the mid-6 percent level, she said.<\/p>\n

However, \u201caffordability is still a major constraint for moderate-income buyers,\u201d <\/strong>Sturtevant noted. \u201cWith home prices expected to rise and rates projected to remain in the 6s through 2025, many of those buyers will still be priced out.\u201d<\/p>\n

On the plus side, consumer sentiment regarding housing is improving, according to a Dec. 9 statement<\/a> from Fannie Mae. In November, a \u201cnew record-high share\u201d of respondents said they expect mortgage rates to dip over the next 12 months.<\/p>\n

Mark Palim, Fannie Mae senior vice president, said that a growing share of consumers expect to be financially better off next year. In addition, more consumers as well as some of Fannie Mae\u2019s experts predict the growth in home prices to slow down.<\/p>\n

This \u201cmay help ease some of the affordability burden and incentivize some households, especially those who have been waiting in the wings, to finally act on their home purchase decision,\u201d he said.<\/p>\n

The 10 criteria looked at various critical factors which affect property prices in a market<\/strong>. This included home price appreciation, the share of households that hit homebuying age over the next five years, growth in jobs, and the proportion of millennials who rent homes and are in a financial position to purchase a home.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 12\/16\/2024 – 05:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/realtor-association-reveals-top-10-hottest-us-housing-markets-2025<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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