20 housing markets where homes will increase in value before the end of 2025
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With 2025 just around the corner, everyone is preparing for the end of the year, but if you're looking for a new home, what's in store for your budget next year? The US housing market is filled with potential financial landmines, but if you're looking at a particular area, you may want to buy before the purchase exceeds your budget.
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While some markets have cooled after the pandemic-induced boom, others are poised for significant growth through the end of 2024 and throughout 2025. Various factors, including migration trends, labor market expansion, infrastructure development and housing supply constraints , contribute to making these regions hotbeds of real estate.
GOBankingRates recently conducted a study to find out which markets are growing fast based on annual home value appreciation. The statistical growth from 2023 to 2024 can be used as a good indicator of how these markets are expected to continue to grow in 2025. Here are 20 housing markets with estimated growth that you should consider investing in by 2025.
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Average home value August 2023: $194,405
Average home value August 2024: $208,997
Change in home value over one year (%): 7.51%
Change in home value in one year ($): $14,593
Average home value August 2023: $453,172
Average home value August 2024: $487,161
Change in home value over one year (%): 7.50%
Change in home value in one year ($): $33,989
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Average home value August 2023: $425,668
Average home value August 2024: $457,399
Change in home value over one year (%): 7.45%
Change in home value in one year ($): $31,731
Read more: 5 Worst Florida Cities to Buy Real Estate in the Next 5 Years, According to Realtors
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Average home value August 2023: $197,599
Average home value August 2024: $212,287
Change in home value over one year (%): 7.43%
Change in home value in one year ($): $14,688
DenisTangneyJr/Getty Images/iStockphoto
Average home value August 2023: $150,977
Average home value August 2024: $161,939
Change in home value over one year (%): 7.26%
Change in home value in one year ($): $10,961
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Average home value August 2023: $289,825
Average home value August 2024: $310,676
Change in home value over one year (%): 7.19%
Change in home value in one year ($): $20,851
Methodology: For this piece, GOBankingRates looked at the 200 largest Metro Statistical Areas (MSA) by real estate market and found the following ten factors. For each MSA GOBankingRates found: 1) percentage change in home value over one year; 2) change in home value in USD over one year; 3) percentage change in home value over two years; 4) change in home value in USD over two years; 5) inventory for sale; 6) average days from listing to pending; 7) average list-to-sales ratio; 8) average days from pending to closing; 9) share listings with a price reduction; and 10) average price reduction. All data comes from Zillow's June 2024 data. Then, all ten factors were scored and combined, with the highest score being the worst housing markets. In the final calculations, factors 1), 2), 9) and 10) were weighted 2x and factor 5) 0.5x. All data has been collected and is current as of September 26, 2024.
Photo Disclaimer: All photos are for illustrative purposes only. The nearest major city outside of the city stated that the item may have been used.
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This article originally appeared on GOBankingRates.com: 20 Housing Markets Where Homes Will Appreciate in Value Before the End of 2025
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