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The latest VeroForecast from Veros Real Estate Solutions predicts home prices will increase sharply over the next 12-months, in the 100 most-populated markets. Additionally, Veros predicts a 5% home price increase by Q3 2021.
"During the next 12 months, no major metro area is forecast to show notable home price depreciation,” said Darius Bozorgi, CEO of Veros Real Estate Solutions. “Earlier this year when many real estate economists were bracing for home price deprecation triggered by job losses, Veros recognized the programs and policies implemented in the wake of the Great Recession would fundamentally keep prices from falling."
In reporting its forecast, Veros analyzes economic factors including employment trends, natural disasters and consumer behavior. The company added that economic indicators and geographic conditions are not consistent across the country. Some areas experienced a boost from earlier quarters due to government stimulus and low consumer spending, which helped homeowners meet their mortgage obligations, according to the report.
"At the onset of the Coronavirus pandemic in the United States, there was a short impact on nearly all housing markets with a month or two of softening," said Eric Fox, Veros vice president of Statistical and Economic Modeling. "After the initial shock, consumers embraced low interest rates and home prices returned to their pre-pandemic level and continue to move upward."
According to Veros, some of the strongest markets to watch over the next 12 months include, Boise, ID; Olympia-Lacey-Tumwater, WA; Spokane, WA; Phoenix-Mesa-Chandler, AZ and Bremerton-Silverdale-Port Orchard, WA. Some of the weaker markets include Midland, TX; Odessa, TX; San Francisco-Oakland-Berkeley, CA; New York-Newark-Jersey City, NY-NJ-PA and Lake Charles, LA.
Read more from the VerosForecast report.