2025 Market Insights — Most Active Real Estate Markets

National Context: What's Shaping Every Market

Understanding these five macro trends helps interpret local market dynamics across all metros.

#1

Affordability vs. Rates

30-year FRM in mid-6s range. Rates eased from 2024 highs but remain elevated, improving payments without fully re-igniting demand.

#2

Inventory Rebuilding Slowly

Active listings grew YoY for ~2 years, crossing 1M+ repeatedly, yet supply still sits ~10–15% below 2017–19 norms.

#3

Sticky National Prices

National HPI growth cooled to low single digits YoY. Pricing power is localized—strong where supply stays tight and incomes rise.

#4

Investor Activity Cooled

Investor purchases down vs. 2022 peaks. Shares in high-teens to low-20s, moderating competition in many entry tiers.

#5

Quality Over Quantity

Cancellations hit records in some metros. Buyers have more options and stricter inspections. Bidding intensity varies widely.

Cross-Market Metrics Dashboard

Essential indicators to track across all markets for consistent analysis.

Months of Supply

<2.5 Seller Market | 2.5-4.0 Balanced | >4.0 Buyer Market

Sale-to-List %

≥100% Competitive | <99% Cooling

Active Listings

vs. 2017-2019 Baseline

Mortgage Rates

<6.5% Helps Entry | ≥7% Cools Activity

Investor Share

High-teens to Low-20s Nationally

Price Drops

Rising = Demand Fatigue

Market Clusters: Regional Analysis

Great Lakes / Midwest: "Value & Velocity"

Value Markets Stable Employment Tight Inventory

Key Markets: Indianapolis, Cincinnati, Columbus, Cleveland, Detroit, St. Louis, Kansas City, Louisville

Why They Compete: Lower price-to-income ratios vs. coasts; modest new-build pipelines keep resale inventory tight; diversified job bases in logistics, healthcare, and manufacturing revival.

2.0-3.5 Months Supply (Prime Areas)

99-101% Sale-to-List Ratio

Key Insight: These markets often lead "relative strength" when rates exceed 6% because payments stay closer to local incomes. Watch for sharp DOM changes as seasonal listings hit.

Indianapolis <$400k Cincinnati <$350k Columbus <$450k Cleveland <$300k Detroit <$250k Kansas City <$350k

Northeast: "Affordability Pockets + Supply Ceilings"

Supply Constrained Older Housing Stock Return to Office

Key Markets: Buffalo (#1 competitive), Providence, Hartford, Philadelphia, Boston, Pittsburgh

Why They Compete: Chronic under-building plus older housing stock keep supply scarce; post-pandemic return-to-office/hybrid supports urban-adjacent demand.

-15% vs. 2017-19 Inventory

Fast Time-to-Pending <$500k

Key Insight: Persistent tightness in "good bones + good school" segments. Even if national HPI is flat, NE pockets can keep notching gains because new supply is hard to add.

Buffalo <$300k Providence <$500k Philadelphia <$400k Boston <$800k Hartford <$350k Pittsburgh <$300k

Mid-Atlantic / Southeast: "Migration-Powered Growth"

Net In-Migration Employer Expansion Faster Permitting

Key Markets: Charlotte, Richmond, Raleigh, Virginia Beach, Atlanta

Why They Compete: Long-running net in-migration, employer expansions, and relatively faster permitting than NE/West Coast.

Variable Permits vs. Absorption

Declining Investor Share

Key Insight: Still advantaged by move-ins, but affordability has narrowed. Expect micro-cycles between new-build incentives and resale price cuts as rates fluctuate.

Charlotte <$500k Raleigh <$450k Richmond <$400k Atlanta <$450k Virginia Beach <$500k

Florida & Gulf: "High Volume, Higher Variance"

High Cash Share International Demand Fast Cycles

Key Markets: Miami, Tampa, Orlando

Why They Compete: Depth of demand (retirees, second-home, international) plus buildable land keep headline volumes high.

High Cash Buyer Share

Variable Cancellation Rates

Key Insight: Fast cycles. When rates tick up or insurance shocks hit, price cuts spread quickly—but cash demand can floor declines.

Miami <$600k Tampa <$450k Orlando <$400k Miami Condos Tampa Condos

Texas Triangle & Heartland: "Build vs. Absorb"

Population Growth Permissive Zoning Builder Incentives

Key Markets: Dallas, San Antonio, Houston, Austin

Why They Compete: Population and job growth; relatively permissive zoning allows supply response.

Active New-Home Incentives

Elevated Contract Fallout

Key Insight: Expect oscillations as builders toggle incentives and buyers test leverage. High cancellations can coexist with firm medians if incentives replace headline cuts.

Dallas <$500k San Antonio <$350k Houston <$450k Austin <$600k Dallas New Construction

Mountain / West: "Supply-Constrained + Rate-Sensitive"

Land Constraints Rate Sensitive Tech/Gov Cycles

Key Markets: Salt Lake City, Phoenix, Riverside (IE), San Diego, Washington DC

Why They Compete: In-migration magnets with structural land/use limits in key submarkets.

Fast Rate Response

-10% vs. 2019 Inventory

Key Insight: San Diego and DC stay resilient on scarcity and incomes; Phoenix/Riverside flex with rate cycles and investor appetites.

Salt Lake City <$600k Phoenix <$500k San Diego <$800k Washington DC <$700k Riverside <$600k

Key Takeaways for 2025

🏆 Affordability Winners Still Lead

Buffalo, Indianapolis, Providence/Hartford, Cincinnati/Columbus keep surfacing because they balance incomes and supply better than coastal peers.

🌴 Sun Belt More Mixed

Still high volume, but leverage toggles quickly with rates and insurance. Track cancellation rates and builder incentives as early indicators.

🏔️ West Coast Bifurcation

Supply-starved enclaves (San Diego) can outrun national averages; more elastic suburbs (Riverside/Phoenix) swing with rates.

📊 Macro Cushion, Not Boom

With national HPI ~flat QoQ and low single-digit YoY, upside is mostly micro-local (schools, commute nodes, renovated stock).

Additional Market Resources

Explore these markets further with additional listing platforms and market data sources:

🏠 Alternative Listing Sources

Zillow Recent Sales Redfin Market Data Homes.com Search

📊 Market Data Tools

FRED Housing Data NAR Statistics Census Building Permits

🔍 Specialized Searches

Foreclosure Listings New Construction Price Reductions

📈 Rate & Finance Tools

Current Mortgage Rates Mortgage Calculator FHFA Price Index

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