The average projected appreciation rate for residential real estate in the nation's largest 100 housing markets will be up 3.7 percent over the 12 month-period ending Sept. 30, 2020, according to a new forecast
released by Veros Real Estate Solutions.
The forecast is pointing to the same level of moderate and steady growth that it predicted in both the first and second quarters of 2019. The forecast for the 10 strongest markets during this 12-month period will be centered in three states: Washington, Idaho and Texas. Veros added that the defining factor in the strongest markets will be a very low housing supply that forces prices to increase faster than in other markets. Veros’ analytics also predicted that most markets will remain on the healthy side thanks to low-interest rates combined with record-high employment, and the forecast did not include concerns of a housing-fueled recession.
“Veros data shows home price growth in 2020 will be slow and steady,” said Eric Fox, Veros vice president of statistical and economic modeling. “Despite some clear headwinds facing the economy next year, housing fundamentals will prevail. While we won't experience a boom, we aren’t going to go bust, either.”
According to new data from RE/MAX
, home sale activity in September recorded an 8.1 percent year-over-year gain, while single-family housing starts in September were at a rate of 918,000, according to data
from the U.S. Census Bureau and the Department of Housing and Urban Development.