One of the biggest names in real estate expects inventory to grow and mortgage rates to fall in 2025. This one-two punch should help to ease the so-called lock-in effect that has kept so many potential sellers out of the listings because it makes more sense to cling to their enviable COVID-era loan rates.
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Realtor.com recently released its Top Housing Markets for 2025 study. It found the most active hotspots concentrated in the South and West, with the Sun Belt remaining on top — but one metro region stands out above all the rest.
Here’s a look at what’s shaping up to be the hottest market of 2025, the price of its typical home, its daily living expenses — and what it might cost you to wait.
Colorado Springs: Growing Sales and Rising Prices
Realtor.com ranked the country’s 100 largest metros by the sum of their projected sale and price growth rates for 2025.
Colorado Springs, Colorado, came out on top with projected year-over-year home sale growth of 27.1% and a median sale price increase of 12.7%.
Just behind the western city came Miami-Ft. Lauderdale-Pompano Beach, Florida, at 24% and 9%. Ranking third was Virginia Beach-Norfolk-Newport News, Virginia-North Carolina, at 23.4% and 6.6%.
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The Median Home Could Cross the Half-Million-Dollar Mark by 2026
According to Realtor.com, there are currently 3,452 properties listed for sale in Colorado Springs, the average of which spends 65 days on the market before selling. Currently, the median home price is $450,000.
If the study’s projections prove accurate and the sale price does experience 12.7% year-over-year growth, the median buyer this time next year would pay $507,150 for the same house.
A Look at Some of the City’s Most In-Demand Neighborhoods
Here’s a snapshot of the median listing prices in what Realtor.com cites as some of the most popular neighborhoods in Colorado Springs.
- Village Seven: $400,000
- Stetson Hills: $444,000
- Wolf Ranch: $659,900
- Briargate: $524,900
- Ridgeview: $500,000
The Cost of Daily Life in Colorado Springs
Realtor.com’s most recent data shows the national median home price is $416,880, which makes Colorado Springs comparatively expensive at $450,000 — but housing is just one expense to consider for anyone thinking of moving to America’s hottest market.
According to Redfin, the cost of living in Colorado Springs is 3% higher than the national average, with common expenses broken down across the following categories:
- Housing: 11% more
- Utilities: 19% less
- Groceries: 3% more
- Transportation: 3% less
- Health care: 2% less
- Lifestyle: 5% more
If you are looking to move to Colorado Springs, this new data shows you’ll probably want to do it sooner than later.
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This article originally appeared on GOBankingRates.com: The Cost To Buy a House in 2025’s Predicted Hottest Housing Market
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