Top 5 real estate markets to watch in 2025
If you’re looking to buy or sell a home knowing where the market is heating up is essential. While the national landscape can seem uncertain, certain metropolitan areas are poised for exceptional growth in 2025.
Using the latest forecast data from realtor.com, we've analyzed the metrics that matter most: robust sales growth and strong price appreciation. Based on their top rankings, these are the five hottest real estate markets in the US for 2025.
1. Colorado Springs, CO
Region: West | Rank: #1
The Rocky Mountain front-runner, Colorado Springs, claims the top spot with an impressive combination of dynamism and stability. The market is expected to see a staggering 27% year-over-year jump in home sales—the highest on the list. While sales are still slightly below the pre-pandemic benchmark, home prices are soaring, projected to grow 12.7% year-over-year. Most strikingly, the median sale price is a whopping 39.8% higher than the 2017-2019 average, indicating a market that has experienced profound and sustained value growth. This suggests a high demand from buyers seeking a blend of natural beauty and a thriving economy.
2. Miami-Fort Lauderdale-Pompano Beach, FL
Region: South | Rank: #2
South Florida continues its reign as a real estate powerhouse. The Miami metro area boasts a forecasted 24% increase in home sales compared to 2024, with sales volumes nearly matching pre-pandemic levels. Price growth remains strong at 9% year-over-year, cementing the significant gains made in recent years. With median prices 33% above the pre-pandemic average, Miami solidifies its status as a world-class city with a resilient and highly desirable housing market, driven by domestic migration, international investment, and a timeless appeal.
3. Virginia Beach-Norfolk-Newport News, VA-NC
Region: South | Rank: #3
This Hampton Roads metro area stands out for its remarkable balance and strength. It's the only market in the top five where both sales and prices are significantly above pre-pandemic levels. Home sales are projected to surge 23.4% year-over-year and are a massive 24.5% higher than the 2017-2019 average. Coupled with a healthy 6.6% price appreciation, this indicates a deep and sustained demand, likely fueled by the stability of military and federal jobs in the region. It’s a market firing on all cylinders.
4. El Paso, TX
Region: South | Rank: #4
El Paso emerges as a strong contender, highlighting the continued appeal of affordable Texas markets. With home sales up 19.3% year-over-year and sitting 1.3% above pre-pandemic levels, activity is vibrant. The market is also experiencing solid price growth, with an 8.4% year-over-year increase pushing median prices 27.8% higher than the pre-pandemic average. This combination suggests a market that is both active and appreciating, offering relative affordability and value that continues to attract buyers.
5. Richmond, VA
Region: South | Rank: #5
Richmond rounds out the top five with arguably the most explosive sales activity on the list. The Virginia capital expects a 21.6% yearly increase in sales, but more impressively, sales counts are a staggering 31.7% above the pre-pandemic average—the highest differential in the top 10. This incredible demand is met with steady price growth of 6.1%, pushing values 27.6% higher than the previous benchmark. Richmond is clearly a market experiencing a renaissance, drawing buyers with its historic charm, growing economy, and vibrant culture
What Makes a Market "Hot"?
This list shows that a top market isn't defined by just one number. The leaders combine:
Sales Growth: High year-over-year increases in transactions indicate strong buyer demand and market velocity.
Price Appreciation: Rising home values build homeowner equity and attract investment.
Market Strength: Comparing 2025 forecasts to the pre-pandemic (2017-2019) average shows which markets have not just grown, but sustainably expanded.
Whether you're looking for the mountain vistas of Colorado Springs, the coastal glamour of Miami, the stable growth of Virginia Beach, the value in El Paso, or the historic boom in Richmond, these five markets are positioned to be the nation's leaders in 2025.
Source: Market data forecast from realtor.com®. Rankings are based on a combination of key growth metrics.
