Realtors Predict House Prices Will Skyrocket In These 8 Popular Southern Towns

Southern charm, mild weather, and low cost of living have long made the region an appealing destination for homebuyers.

But as housing demand soars, so do the price tags, which can make it hard to snag a deal on a home in some of the more popular Southern towns. Knowing where prices are set to rise could give you a leg up if you're looking to put down roots — or just invest, if you're looking to make cash on the side — before costs climb further.

We've consulted data from the National Association of REALTORS® (NAR), Redfin, and local real estate experts to identify southern towns likely to see major price hikes in 2025.

Homebuyers are also flocking to the Greensboro-High Point metro area of North Carolina, according to Aleks Grigoriev, a real estate expert and co-founder of Sell My House Fast Las Vegas, who says that buyers are drawn to the area's affordability and growing job market.

Grigoriev notes the area is forecasted to see a 7.7% increase in home prices, with sales activity potentially rising by 173.5%.

Additional data from Redfin highlights the region's affordability. Buyers can put down roots in Greensboro at a median home sale price of $270,000.

Knoxville's idyllic scenery, urban amenities, and small-town charm make it a top destination for buyers.

That's because the market has transformed since the pandemic, attracting residents drawn to the quality of life and economic opportunities, according to Marian Epps, Division 2 Vice President for Tennessee REALTORS®.

"Knoxville really has something for buyers at every life stage and desire," says Epps. The city's affordability, aesthetics, and versatility appeal to even the most discerning buyers.

Recent data reinforces Knoxville's strong position. November 2024 home sales rose 2.2% year-over-year, with a median sale price of $375,000 — up 7.7% from last year. Inventory also grew 29%.

Allan Uy, a REALTOR® with The Avenue Home Collective, sees tremendous growth in New Braunfels, Texas where median home sales prices are expected to rise by 9.1%. Uy attributes this to the area's 30% population growth in the last five years and close proximity to San Antonio. New Braunfels' small-town vibe and German roots add to its charm.

Mortgage rates in San Antonio averaging 6.4% are further buoying the market surge. Prospective buyers face less financial strain here with lower mortgage rates and a current median home sales price of $350,000.

This broad Texas metropolitan area is another booming housing market to follow, according to Grigoriev. He notes Austin's booming ‌tech sector and vibrant cultural scene both continue to fuel demand, with home prices expected to increase by 10.2%.

While buyers may hear Austin and see dollar signs, Round Rock and Georgetown are two affordable enclaves both within 30 miles of Austin.

The median home sales price runs $448,952 in Georgetown and $393,992 in Round Rock, compared to $538,000 in Austin.

Orlando isn't just home to the happiest place on earth, it's another area where Grigoriev sees major market growth. He notes home prices are projected to rise by 12.1% and sales increase by 15.2%, due to the city's excellent schools, family-friendly attractions, and construction ramp-up for new homes.

The median sales price for a home in Orlando is $395,835. While it's not cheap, solid recent-year market trends and plentiful options to generate income through Airbnb, Vrbo, and other rental options could make Orlando an excellent opportunity for the right homebuyer.

Richmond-based real estate agent Cindy W. Bennett, associate broker, ABR, GRI, GREEN, Maison Real Estate Boutique, says her city is one of the nation's hottest markets for 2025.

In traditional markets, January is slow and April has bustling demand. But Bennett notes, "I'm not 'January busy' right now, I'm 'April busy.'"

Factors driving growth include Richmond's proximity to Washington D.C., centralized access to the mountains and the beach, and the entry of new buyers who were previously sidelined due to high mortgage rates. "They're realizing [rates] are not going to go down any time soon, so they're just making it work."

Additionally, Bennett says Richmond is seeing a serious inventory shortage in a tight inventory market, but it's not impossible to jump in. The average number of offers per home that a seller receives has decreased from over 20 to three.

Redfin data reveals the average list home remains on the market for only 25 days and sells at a median sales price of $399,975.

The Chattanooga area, including parts of North Georgia, continues to attract a steady influx of buyers thanks to its low cost of living, outdoor recreation, and tax-friendly environment.

According to Travis Close, former president Tennessee REALTOR® and a seasoned expert with over 18 years in the local market, many buyers are relocating here from the West Coast and Northeast.

Close says the region also holds a multigenerational appeal. "We are seeing a large number of older home buyers that are moving here to move closer to the kids and grandkids that moved here three to five years ago."

El Paso is a city to keep an eye on, according to Uy. Median home sales prices are expected to rise by 8.4%, which Uy says is due to the low cost of living, strong local economy, and proximity to Fort Bliss, one of the world's largest military bases.

Uy believes that a housing shortage and increased construction costs will contribute to the rise in housing prices.

Redfin market data reveals a median home sales price of $266,165, making it an affordable city for many first-time home buyers.

The southern U.S. continues to be a desirable destination for homebuyers, with affordable prices, economic opportunity, and community charm adding to its appeal.

If you're looking to make your move, now's the time to explore your options. Lower mortgage rates and improving inventory levels could offer a brief window to buy before prices skyrocket, allowing you to either find your dream home or invest in a property that will help pay for your mortgage.