Real estate in the nation’s 100 largest markets is expected to continue to appreciate into next year, although some leveling is expected. Veros Real Estate Solutions, a risk management and predictive analytics firm, projects appreciation will be at 3.7% over the 12 months ending June 1, 2020.
“This flattening indicates that although there is definite softness overall in the housing market, the fundamentals are healthy,” says Eric Fox, Veros’ vice president of statistical and economic modeling. “One potential contributing factor we saw in the models is some softening of mortgage interest rates, which is helping to prop up values and stem the decline.”
The markets poised to appreciate the most over the next year are dominated by small to modest-sized metros. The Northwest continues to dominate the highest appreciating markets, with Idaho and Washington state each holding four of the top 10 spots, the report notes. Several Midwest states, including Indiana, Michigan, and Ohio, are also showing strength, with average statewide appreciation for all three around 5%, according to the report.
“Housing supply is a key discriminator between the markets in this forecast’s top … rankings,” Veros notes. “A very low housing supply is a feature of the markets where prices are expected to increase significantly. Population trends are another consistent characteristic.”
Veros predicts that the following 10 housing markets will see the greatest appreciation through June 1, 2020:
- Odessa, Texas: 9.7%
- Coeur D’Alene, Idaho: 9.5%
- Idaho Falls, Idaho: 9.4%
- Boise City-Nampa, Idaho: 9.1%
- Midland, Texas: 8%
- Bellingham, Wash.: 7.8%
- Spokane, Wash.: 7.4%
- Kennewick-Pasco-Richland, Wash.: 7.2%
- Pocatello, Idaho: 7.2%
- Yakima, Wash.: 7.2%
Source: magazine.realtor
