In recent years, we've seen home values rise dramatically and fall in a similar fashion, making the housing market feel like a rollercoaster ride. And while the housing market might be soft overall, some markets are poised for major price hikes, according to some real estate agents.
If you're a homeowner or planning to become one, making smart money moves can help you regardless of market swings. Here are nine housing markets where real estate agents expect rising prices in the year ahead.
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New York City, New York
In the city that never sleeps, housing prices have gone up and down over the years. But it looks like home prices are poised to soar even more, according to Suzanne Weinstein, a real estate broker at Coldwell Banker Warburg.
As Weinstein says, "I'm anticipating an explosion of demand on the Upper West Side. While the neighborhood is already expensive, it's undervalued relative to much of the city. Unlike so many parts of Manhattan, the closer you get to the center, the more residential it feels."
Fairfield County, Connecticut
Fairfield County has remained popular for good reason: people love what the area has to offer. But according to Jason Mudd, market analyst and managing partner of Cindy Raney & Team at Coldwell Banker Global Luxury, price hikes are coming for this market.
Mudd says, "This is still a supply-constrained market, and demand hasn't disappeared. If anything, it has become more selective."
Mudd says that many of the most popular cities in the county are facing significant inventory constraints, which can't keep up with buyer demand. Although rates might have put a damper on house buying in some parts of the country, "Buyers may be cautious, but life-stage demands such as schools, family needs, space, and job changes continue to force decisions."
Philadelphia suburbs
With close proximity to the City of Brotherly Love, many families choose to put down roots right outside of town.
"I continue to see tight inventory across the tri-state suburbs, especially in the $300K–$600K price range," says Mike Severns, Realtor, The Mike Severns Team at eXp Realty.
Severns continues, "With strong first-time buyer demand and limited new construction in established communities, I expect steady appreciation."
Toledo, Ohio
Many cities in Ohio, including Toledo, have a reputation for relatively affordable housing costs. While it might surprise many to include Toledo on this list, Andrew Fortune, real estate agent and owner of Great Colorado Homes, says price hikes might be coming to this city soon.
"Housing supply remains tight because very few new homes are being built in the area," says Fortune.
Central New Jersey
New Jersey has had a tight housing market for years. With that, it might not be too surprising that home prices are likely to climb even further in the area.
According to Jaime Luongo, a broker at Weichert Realtors, the coming hike is based on several factors, including continued migration from New York City into metro New Jersey and declining interest rates, increasing buyer purchasing power.
Luongo also mentioned reverse migration, saying, "homeowners who relocated during COVID to Florida and the Carolinas are now buying back into New Jersey."
Tampa, Florida
For those looking to move to the Sunshine State, Tampa is a popular spot. But housing costs might jump this year.
"Obviously, everybody wants to retire in Tampa, but Florida's lack of state income tax and its expanding tech and professional services markets also attract plenty of younger workers," says Darren Robertson, Founder and Realtor at Northern Virginia Home Pro.
With new inventory snatched up quickly in 2020, many homeowners in the area are locked in attractive mortgage rates and have no reason to sell anytime soon. The limited housing supply will push prices higher as more buyers head to this market.
Nashville, Tennessee
Nashville has had a population growth spurt in recent years, and many residents are actively seeking single-family homes, which are currently in short supply.
"Construction in Nashville is mostly limited to multifamily development, which means single-family inventory in places like Williamson County is still highly desirable," says Robertson.
With limited supply and increasing demand, it's only a matter of time before home prices rise in the Music City.
Boston, Massachusetts
In this historic city, home prices have continued to climb, even with stifling interest rates. And once again, the rising prices boil down to limited housing supply and insatiable demand.
"Despite a marginal increase in new construction, decades of under-building have created a permanent floor for prices, keeping the city hyper-competitive regardless of national trends," says Cyrus Vaghar, Boston-area real estate agent at Coldwell Banker Realty and principal of Find Agents Now.
Portland, Maine
Portland offers a mix of quirky downtown and beautiful ocean vistas. It's a pricey spot. But when compared to the rest of New England's cities, it's relatively affordable.
"As the Boston metro remains prohibitively expensive, Portland has become the primary refuge for New England's professional class," says Vaghar.
But a constant influx of out-of-state buyers with high purchasing power outpaces local inventory, which will likely push prices higher in 2026.
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Bottom line
While no one can predict the future, the housing market will likely continue to change this year. If you've been waiting for falling home prices, that might not become a reality in these hot markets. But it's impossible to know what time will tell.
But if you jump into homeownership or plan to sell your home, making this smart homeowner money move could come in handy.
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