Not unlike a drink cooler on a scorching summer day, the hottest metros in the U.S. real estate market are mostly trying to maintain their temperature in generally uncomfortable conditions.
The residential housing market continues to show signs of softening amid an uncertain economic outlook for the remainder of 2025.
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While qualified buyers still face 30-year mortgage rates hovering between 6-7% and elevated post-pandemic home prices, the macro dynamics are swinging away from sellers in many areas of the country.
However, that's not exactly the case in the Northeast, where median list prices were up slightly in June compared to flat or declining averages in the South, West, and Midwest.
Residential real estate inventory sees 20th straight monthly increase
Realtor.com's June housing data revealed the inventory of homes climbed 28.9% year-over-year, now sitting north of one million active listings.
While that's still 13% below pre-pandemic levels, it continues a trend dating back to late 2023.
Sellers have been understandably slow to adjust to expectations after a recent seller-friendly run, but nationwide price cuts, median days on market and delistings were on the rise in June.
Zillow's Market Heat Index still points to an overall neutral market, so things vary by region.
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With demand holding steady as buyers seek more affordability outside of major metros, prices are still growing modestly in New England, as well as the upper Midwest.
But that's not the case everywhere.
“Despite this demand, only three of the nation’s 50 largest metropolitan areas remain affordable for the typical household, highlighting the ongoing challenges around housing affordability,” Realtor's Hannah Jones wrote.
Already facing lagging construction and the largest supply gap among the four major U.S. regions, the Northeast also saw the slowest inventory growth in June (+17.6%).
Those underlying factors are keeping agents especially busy in the greater New England area.
Image source: Joe Buglewicz/Bloomberg via Getty Images
Massachusetts stayed hot in June, three metros ranked in top 12
For the second consecutive month, Springfield, Massachusetts — home of the Naismith Memorial Basketball Hall of Fame — was named the hottest U.S. market in Realtor.com's June 2025 report. It was the city's fifth appearance in the top spot.
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Situated 95 miles west of Boston and 27 miles north of Hartford, Connecticut, Springfield is nestled in southwestern Massachusetts and is home to nearly 155,000 people, approximately one-fourth the population of the capital city.
Springfield also remains below the national average in median days on market (23 compared to 53 nationally) and median list price ($373,000 compared to $440,950 nationally in June).
Amherst Town-Northampton (No. 6) and Worcester (No. 12) also represented Massachusetts high on the list, both with median list prices in the mid-500s.
In total, 13 of the top 20 hottest markets were located in the Northeast, including Hartford (CT), Rochester (NY), Concord (NH), Manchester (NH), Norwich (CT), Binghamton (NY), Lancaster (PA), Erie (PA), Providence (RI), and Reading (PA).
Related: Top 5 states where foreign buyers are scooping up US real estate
