In a Wednesday projection, Veros Real Estate Solutions, an enterprise risk management, collateral valuation services, and predictive analytics provider, said residential market values are going to continue their upward trend for the next 12 months in every market—even if it’s just slightly.
The VeroFORECAST, a quarterly national real estate market forecast released by the company, covers a 12 month period ending September 1, 2018, and forecasts appreciation of +4.0 percent, higher than last quarter’s forecast of +3.7 percent.
“Our Q3 forecast reveals the largest percentage of markets we have ever seen that are forecast to appreciate, with only 3 percent of markets expected to depreciate—showing continued general market strengthening for the overall U.S. residential real estate market,” said Eric Fox, VP of Statistical and Economic Modeling at Veros.
According to Fox, all of the Top 10 forecast markets, which are forecast at appreciation greater than 10 percent in the next 12 months, are in the Northwestern states of Washington, Colorado, and Idaho with the top three markets in Mount Vernon, Seattle, and Bellingham, Washington.
Of the bottom 25 markets, 20 are either in the Northeast or South, according to the report, in small metro areas. One of the worst performing markets—Atlantic City—is predicted to have 2 percent depreciation.
“Appreciation in Boston is expected to continue to accelerate going from 6.5 percent during the last update pushing to close to 8 percent during this update,” Fox said. “Also, we see some softening in South Florida with many of these markets along the Southeast coast to have their forecast appreciation 1 percent to 2 percent lower than during the last quarterly update.”
He continued to say that the effects of the recent Hurricanes are still being assessed, but in the next quarter forecast, Veros should be able to begin to see this impact.