Veros Real Estate Solutions reports that residential market values will continue their overall upward trend during the next 12 months, with overall annual forecast appreciations indicating a rise of 3.7 percent, slightly up from last quarter’s 3.5 percent increase. The insight comes from the company’s most recent VeroFORECASTSM, a quarterly national real estate market forecast for the 12-month period ending Dec. 1, 2017.
“Although we expect to see interest rates increasing and inflation ramping up, the overall labor market is expected to remain strong. These effects will essentially offset each other, and allow the overall national forecast to remain strong, and consistent with what has been predicted and observed in previous forecast updates,” Veros Statistical and Economic Modeling VP Eric Fox said in the company’s press release.
Washington, Oregon, and Colorado monopolized the top positions in all of 2016, and continue to hold nine of the top 10 markets in the forecast for the next 12 months. Seattle and Denver lead the way with forecast appreciation of 10.9 percent and 10.2 percent, respectively, the release said.
On trend with last quarter’s forecast, the weakest five performing markets are expected to depreciate between 1 percent to 2.5 percent. “Thus, even these worst performing markets won’t see a significant drop,” Fox said.
The worst performing market this quarter is expected to be Poughkeepsie, N.Y. (- 2.5 percent); followed by Binghampton, N.Y. (-1.9 percent); Atlantic City, N.J. (-1.8 percent); Cumberland, Md. (-1.7 percent); and Vineland, N.J. (-1.3 percent).
In comparison to last quarter, VeroFORECAST predicts continued softening in the once-hot markets of South Florida and the Bay Area. Markets such as San Francisco and San Jose are down by 1 percent to forecasts in the 5 percent range. Likewise, South Florida markets such as Miami and Fort Myers are down 1 percent to forecast at the 4 percent range.