Veros: Real Estate Market Has Crested – NMP Skip to main content

Veros: Real Estate Market Has Crested

May 01, 2014

Veros Real Estate Solutions says that the residential real estate market has crested after almost two straight years of rapidly increasing appreciation. This insight is from the company’s VeroFORECAST national real estate market forecast for the 12-month period ending March 31, 2015, updated quarterly and covering more than 1,000 counties, 345 metro areas, and 13,770 zip codes. Veros’ future home price index (HPI) forecast indicates that, on average for the top 100 metro areas, Veros expects 3.4 percent appreciation over the next 12 months, down from last quarter’s 5.1 percent forecast, which may very well have been the peak for the national outlook. This is the seventh consecutive quarter where the index has shown forecast appreciation. While the market is expected to be healthy overall, the level of forecast appreciation is definitely slowing, according to Eric Fox, Veros’ vice president of statistical and economic modeling and developer of VeroFORECAST. “The wave of appreciation may have crested, but it has been an impressive recovery in many respects,” said Fox. “The market is stabilizing and the overall outlook is very positive. However, we won’t see the rapid gains we have experienced in prior quarters. Those days appear to be behind us for the foreseeable future.” The stabilizing trend is expected to last over the next two years, Fox adds. “We are seeing continued signs that a year or two from now the rapid increase of prices will slow in many parts of the country.  Importantly, we don't foresee drastic slowing - simply some moderation. The primary reason for some slowing in the 13 to 24 month range is due to expected higher interest rates and somewhat lower affordability,” he explains. “The average national forecast for the next 12 months is 3.4 percent, and the average forecast for the following 12 months (months 13-24) is only 2.0 percent,” Fox says. Projected Five Strongest Markets 1. San Jose-Sunnyvale-Santa Clara, CA +9.7 percent 2. Los Angeles-Long Beach-Santa Ana, CA +9.3 percent 3. Midland, TX +9.3 percent 4. Bismark, ND +9.1 percent 5. San Francisco-Oakland-Fremont, CA +8.8 percent Projected Five Weakest Markets 1.      Atlantic City, NJ -2.5 percent 2.      Norwich-New London, CT -1.7 percent 3.      Fayetteville, NC -1.6 percent 4.      Rockford, IL -1.6 percent 5.      Winston-Salem, NC -1.6 percent
About the author
Published
May 01, 2014
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026