Massachusetts’ real estate markets are projected to cool off in 2025, according to Realtor.com economists.
When revealing its revealed its top housing markets for 2025, Massachusetts didn’t crack the top 25 and was towards the bottom of Realtor.com’s list. Springfield was the highest Massachusetts market on the list at 36. The Worcester and Boston metros were at the bottom of the list, coming in at 79th and 93rd.
Greater Boston is projected to have a drop in sales while home prices are projected to grow by 5.6 percent year over year.
“While nationwide home sales are expected to see a slight uptick this year, driven by a cooling in home price growth, the top markets we’ve identified are poised for stronger sales and price gains in 2025,” Danielle Hale, chief economist at Realtor.com, said in a statement. “With mortgage rates likely to ease only modestly next year, these markets—offering relatively lower-priced homes, more new and existing houses to choose from, and mortgage products designed to give buyers a leg up—could provide some would-be buyers a better chance at entering the market next year.”
Colorado Springs is projected to be the hottest market in the nation next year with home sales increasing by 27.1 percent and median home prices increasing by 12.7 percent year-over-year. Southern and Western markets are projected to see the most growth.
Top markets boast ample inventory and are made up by younger, more diverse buyers with strong military and international ties according to Realtor.com. More than 1 in 7 households in the top markets are active-duty or veteran, exceeding the average of 1 in 8 across the 100 largest metros.17.6 percent of residents are foreign-born, compared to an average of 13 percent in the largest metros.
Additionally, these markets also have higher rates of families with children, with 28.8 percent of households including children compared to the national average of 26.5 percent.