While the housing market is notoriously unpredictable, advanced market data can make it easier to stay ahead in the real estate sector. In our Q2 2025 housing market predictions, we highlight where home sales will likely be strongest and where prices could rise.
This report explores the top 10 metros for home sales, emerging regional trends, forecasted price growth, and the best markets for long-term investment.
Whether you’re an investor looking to target high-yield metros or a real estate agent planning your next move, using predictive tools like HouseCanary's programmatic data gives you an edge in navigating the ever-changing market.
Housing market uncertainty remains top of mind in 2025, but data-driven forecasts help buyers, sellers, and investors stay ahead. By analyzing trends like migration, inflation, and climate risk, you can anticipate shifts and price listings accurately.
Buyers are continuing to move from high-cost coastal cities like San Francisco and New York to more affordable mid-sized cities, particularly in Florida. Generally, these areas have lower taxes, a warmer climate, and growing job markets that offer better value and quality of life.
Key insights:
Despite ongoing concerns, a full-scale housing market crash in 2025 appears unlikely. While some markets may experience modest price corrections, national indicators—such as low inventory levels and relatively strong employment—point to a more stable outlook.
Inventory remains limited compared to historical norms, and demand continues to be supported by demographic shifts, including millennial homebuyers and migration to affordable metros.
Using our proprietary data, we’ve identified the top 10 metro areas in the U.S. where homes are most likely to sell in Q2 2025. The ranking uses each city's projected listing rate over the next 90 days.
To provide additional context on the current market dynamics, Chris Stroud, HouseCanary’s Chief of Research, explains:
“Most markets are trending at multiyear lows in terms of overall listing activity; both in terms of new listings as well as the number of listings going into contract. Mountain West states and Florida are expected to have robust listing activity through the end of the year.
However, the elevated listing activity in these regions is also leading to elevated inventory, putting increasing pressure on price growth.”
Each city on this list has a distinct driver behind its projected listing volume, from seasonal turnover in retiree communities to post-recovery activity in hurricane-impacted markets. Let’s dive into the metros most likely to see turnover in Q2 and explore how to find the best real estate markets to invest in using data-driven strategies.
With a projected listing rate of 3.1%, Punta Gorda leads the nation in expected home listings relative to its housing stock. This Southwest Florida city continues to attract retirees and remote workers, and its high turnover rate suggests a dynamic market.
The elevated listing activity likely reflects ongoing migration trends, increased seller confidence, and continued reshuffling among seasonal and second-home owners.
Cape Coral-Fort Myers ranks second with a 2.97% expected listing rate, indicating frequent market churn. As one of the fastest-growing regions in Florida, this area remains a hot spot for both investment and relocation.
Despite recent hurricane-related disruptions, the market is rebounding quickly, and high seller participation suggests renewed confidence.
St. George is the only city outside the Southeast in the top five, with a projected listing rate of 2.87%.
The region's popularity among retirees—and its ongoing population growth—continues to drive housing demand and seller activity. Its scenic appeal and status as a lifestyle destination keep the market active even amid broader economic uncertainty.
Hilton Head’s listing rate of 2.79% signals strong turnover in a market known for second homes and luxury vacation properties. As demand for resort-like living remains high, many homeowners are taking advantage of favorable selling conditions. Generational shifts and estate sales may also drive inventory growth in this area.
Ocala’s expected listing rate of 2.78% reflects its emergence as a more affordable alternative within Florida’s interior. The area’s growing population, driven by both retirees and workforce housing demand, has created an environment ripe for listings. Sellers are responding to increased buyer interest by bringing more properties to market.
With a listing rate of 2.71%, Sebring-Avon Park is seeing increased turnover in its quiet, retiree-oriented market. Its low cost of living and attractive climate continue to appeal to downsizers and seasonal residents, resulting in steady listing activity relative to its size.
Homosassa Springs projects a 2.7% listing rate, driven by its affordability and natural amenities. As a quieter part of Florida’s Nature Coast, it’s benefiting from increased attention from buyers priced out of larger metros, prompting more homeowners to list their properties while demand remains strong.
The Villages shows a projected 2.64% listing rate, reflecting high natural turnover in this retirement community. As one of the fastest-growing metro areas for older adults, The Villages has a constant inflow and outflow of residents, resulting in a consistently high volume of property listings.
Panama City also has a 2.64% listing rate, boosted by continued recovery and development following recent hurricanes. The coastal market is popular among both vacation-home seekers and investors, and the rising listing rate reflects increased seller engagement as the area stabilizes.
Rounding out the top ten with a 2.62% listing rate, Sebastian-Vero Beach is benefiting from its blend of beach-town charm and relative affordability. Sellers are taking advantage of buyer interest in Florida’s Atlantic coast, keeping listing activity high heading into Q2 2025.
While metro-level activity reveals where homes are most likely to sell, state-level trends offer a broader view of market momentum. Several states stand out in listing activity, driven by migration, affordability, and favorable economic conditions.
HouseCanary’s proprietary data reveals that Florida tops the list of states with the highest expected listing activity in Q2 2025, with 2.46% of homes projected to hit the market over the next 90 days. This positions it as a major hot spot for real estate professionals, though rising inventory may also affect price growth.
Other high-activity states include:
HouseCanary's latest home sale price forecast data reveals that many small and midsize U.S. cities will see price appreciation through the third quarter of 2025. These projections, based on the HouseCanary Home Price Index (HPI), reflect key market indicators like inventory levels, listing activity, and buyer demand.
Understanding where and why prices will likely rise helps investors and agents make smarter decisions about where to buy, sell, or hold, especially in a market where regional performance varies widely.
Key forecasts include:
“From a national perspective, we expect a moderate increase in prices of +3% y-o-y. Price growth will vary by region, with the strongest growth expected in the Midwest and New England.
The weakest growth will be in parts of the South, including Florida and Texas. Some MSAs in this region are expected to see moderate decreases in home prices y-o-y,” said Chris Stroud.
Determining the best cities for long-term investment relies on listing rate growth and home price appreciation forecasts. Using proprietary HouseCanary data, we’ve identified the top five U.S. markets offering strong potential return on investment (ROI) through 2025.
1. Jacksonville, NC
A fast-growing military and coastal community, Jacksonville stands out with strong housing demand, a healthy balance of new inventory, and appreciating home values.
2. Grand Junction, CO
Grand Junction benefits from limited housing supply and growing interest from remote workers and retirees, supporting listing activity and price growth.
3. Reno, NV
With a diversifying economy and spillover from California markets, Reno offers solid fundamentals for long-term investment, combining sustained listing growth with strong price performance.
4. Fort Collins, CO
This college town continues to attract families and professionals seeking quality of life and stable job markets, driving steady listing increases and price growth.
5. Orlando-Kissimmee-Sanford, FL
Orlando’s strong tourism, health care, and education sectors keep housing demand elevated, while its surrounding suburbs are seeing increasing inventory without significant downward pressure on home values.
These markets represent a combination of expanding inventory and healthy price appreciation, making them top picks for real estate investors focused on long-term growth.
As the housing market continues to shift in 2025, predictive analytics will play an increasingly important role in shaping strategy for investors, agents, and lenders.
Accurate housing market predictions allow stakeholders to make data-informed decisions, avoid risk, and identify opportunities before they become obvious. Combining real-time insights with historical trends, modern real estate AI tools can reveal where the market is and where it’s headed.
Looking to get ahead of market trends before they happen? HouseCanary’s Instant Insights delivers real-time data on any property or market nationwide, helping professionals act faster with confidence. For a deeper dive, Property Explorer lets you search, analyze, and compare markets at a more detailed level. Start making smarter real estate decisions today with predictive analytics.
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