Home price appreciation slowingMortgagePress.comU.S. home price appreciation
Veros, a predictive technology software company based in Santa
Ana, Calif., has released the results of its quarterly forecasting
of the nation's real estate markets, revealing the top 10 hottest
and coldest markets for the next 12 months. Veros performs its
analysis on a quarterly basis and revealed the results of its most
recent forecast for the second quarter of 2006 through first
quarter 2007 (04/01/2006-03/30/2007) at the Predictive Methods
Conference (PMC 2006) in mid-June.
According to Veros, the 10 markets in its coverage area that
will see the greatest home price appreciation over the next 12
months along with the expected appreciation rates will be Seattle,
11 percent; San Bernardino County, Calif., nine percent;
Jacksonville, Fla., nine percent; Raleigh/Durham, N.C., eight
percent; Tampa, eight percent; Tucson, seven percent; Riverside
County, Calif., seven percent; Oakland, Calif., seven percent; Los
Angeles, seven percent and Nashville, seven percent.
The markets that are expected to show the least home price
appreciation over the next 12 months are Rochester, N.Y., showing a
decrease of four percent; Worcester, Mass., dropping two percent;
Sacramento, Calif., falling two percent; Memphis, dropping one
percent; Dayton, decreasing one percent; and Grand Rapids, Mich.
Boston, Cleveland, Detroit and Fall River, Mass., all showing zero
percent home price appreciation.
Veros Vice President of Technology Eric Fox presented the
material at PMC 2006 in Dana Point, Calif. "We expect some home
price appreciation on the hot market side, but nothing compared to
what we've seen in the past," said Fox. "There are no 25
percent-plus markets in our projections. Appreciation is slowing
way down."
As for the coming 12 months, Fox said that we should expect to
see less variation in home price appreciation than at any time in
the past four years. Even so, some markets are still expected to
perform very well, including Washington, D.C. and North Carolina,
which both scored relatively well compared to previous years.
But even those markets that are expected to do relatively poorly
will not depreciate much. The coldest market, Rochester, N.Y., is
only expected to fall four percent. While Arizona and Florida, two
of last year's hottest markets, should see home price appreciation
slow, both markets are expected to be firm over the next 12 months.
Even so, Veros considers its current 12-month home price forecast
to be an indication of a generally softening U.S. housing
market.
For more information, visit www.veros.com.
