Posted on Wednesday, January 5, 2011
According to a recent update to the real estate market forecast from Veros Real Estate Solutions, select markets in the United States can expect 2.5 percent to 3.5 percent appreciation in home values over the next 12 months.
Although only mild appreciation is expected, approximately 40 percent of all major metro areas are forecast to see property values go up in 2011, Veros said.
The California-based provider of enterprise risk management and collateral valuation services predicts that San Diego’s consistent pattern of having one of the strongest home price appreciations will continue in 2011.
Washington State’s tri-city area; Pittsburgh, Pennsylvania; Fargo, North Dakota; and the Washington, D.C., metro area will follow San Diego in home appreciation values.
“Smaller metro markets with populations less than 250,000 make up the majority of the better appreciating markets,” said Eric Fox, Veros’ VP of statistical and economic modeling, crediting affordability factors.
Projected Five Strongest Markets
1. San Diego / Carlsbad / San Marcos, CA +3.5%
2. Kennewick / Richland / Pasco, WA +3.4%
3. Pittsburgh, PA +2.7%
4. Fargo, ND-MN +2.6%
5. Washington / Arlington / Alexandria, DC-VA-MD-WV +2.5%
Veros also predicts generally good forecasts in Texas, Louisiana, Arkansas, Oklahoma, South Dakota, North Dakota, and Iowa, with a strengthening trend spreading to parts of the Midwest.
Florida; Reno, Nevada; and Boise, Idaho, will see the nation’s greatest depreciation rates in the coming 12 months. Six of the 10 U.S. markets expecting the greatest depreciation are in Florida.
Projected Five Weakest Markets
1. Reno / Sparks, NV -7.2%
2. Orlando / Kissimmee, FL -6.5%
3. Boise City / Nampa, ID -6.4%
4. Deltona / Daytona Beach / Ormond Beach, FL -6.3%
5. Port St. Lucie / Fort Pierce, FL -6.3%
“It is noteworthy that depreciating forecasts remain much better than those from a year ago with nothing worse than 7 percent depreciation,” Fox said.
Fox continued, “A year ago, we were seeing some markets with depreciation rates in the double-digit range. So while things aren’t happening rapidly, the forecast indicates they are getting better.”
By: Heather Hill Cernoch 1