Veros Real Estate Solutions, an award-winning industry leader in enterprise risk management, collateral valuation services, and predictive analytics, released its second quarter 2018 VeroFORECAST, which predicts that over the next 12 months residential market values will appreciate at a national average of 4.4 percent, slightly higher than predicted in the previous report, according to a release from Veros.
“Washington State and Nevada occupy six of the 10 highest-appreciating MSAs in the U.S., and the remaining four are in California, Oregon and Idaho,” Veros Statistical Economic Modeling Vice President Eric Fox said in the release. “This is the 24th quarter in a row where this index has forecast overall appreciation. Interestingly, the metro markets that are projected to appreciate the most over the next 12 months in this VeroFORECAST release are also among the most populated, while the markets that are expected to depreciate most are all among the least populated. For example, the average population of the top 25 metros is 1.7 million and the average population of the bottom 25 metros is 318,000.”
The new report confirms what has been experienced over the last several years: high demand for housing and historically low housing supply remain the key determinants of where any given market is expected to be on the appreciation-depreciation spectrum.
There is also a geographical component to real estate appreciation predictions, according to Veros. Not only are the projected top 10 trending U.S. markets concentrated in the West, but the 10 that are predicted to depreciate slightly or remain the same are in the East and South.
For the 12 months beginning June 1, 2018, Veros predicts all 10 of the highest-appreciating MSAs and 21 of the top 25 markets will be in seven contiguous far west states, from Washington and Idaho through Oregon and California and east to Nevada, Utah and Colorado.
The top five markets are Seattle-Tacoma-Bellevue, Wash. (+11.1 percent); Olympia, Wash. (+9.8 percent); Bremerton-Silverdale, Wash. (+9.8 percent); San Jose-Sunnyvale-Santa Clara, Calif. (+9.5 percent) and Carson City, Nev. (+9.5 percent).
Rounding out the projected top 10 markets are Reno-Sparks, Nev. (+9.5 percent); Mount Vernon-Anacortes, Wash. (+9.4 percent); Pocatello, Idaho (+9.4 percent); San Francisco-Oakland-Fremont, Calif. (+9.2 percent) and Eugene-Springfield, Ore. (+9.1 percent).