Home values set to continue rising in 97% of markets
The upward trend of US home values is set to continue with almost all markets gaining during the next 12 months.
The latest forecast from analytics firm Veros Real Estate Solutions calls for values to appreciate by 4% through September 1, 2018.
“Our Q3 forecast reveals the largest percentage of markets we have ever seen that are forecast to appreciate, with only 3% of markets expected to depreciate – showing continued general market strengthening for the overall U.S. residential real estate market,” says Eric Fox, VP of Statistical and Economic Modeling at Veros.
Increased values are forecast to be driven by the Northwestern states of Washington, Colorado and Idaho.
Washington’s Mount Vernon, Seattle and Bellingham are set to be the top 3 markets with growth of more than 10% driven by high employment and population growth, and low housing inventory.
The Northeast and South contain 20 of the bottom 25 markets and are smaller metros.
“On the contrast to our top 3 markets, these markets are characterized by either flat population trends or significant declines spanning several decades,” Fox explains.
One notable exception for value appreciation in the Northeast is Boston which Veros forecasts will gain 8%.
The worst performing market is forecast to be Atlantic City with a 2% decline in home values over the 12 months to Sept. 1, 2018.
“Also, we see some softening in South Florida with many of these markets along the Southeast coast to have their forecast appreciation 1%-2% lower than during the last quarterly update, adds Fox. “It is not yet evident how the dramatic hurricane-affected areas will ware, but we should be able to begin to see this impact as we look at next quarter’s forecast.”