Thursday, December 23, 2010 - Article by: Dan the loanman - E Mortgage Capital, Inc. -
Home values are starting to turn the corner and move in a positive direction, according to the U.S. real estate market forecast from Veros Real Estate Solutions.Over the next 12 months, approximately 40% of all major metro areas are forecast to appreciate even though that growth is expected to be mild, said Eric Fox, Veros' vice president of statistical and economic modeling. "Looking out to the 12 to 24 month horizon, nearly 60% of markets are expected to appreciate. So while things aren't happening rapidly, the forecast indicates they are getting better," he continued.Even in the markets that are on the downside, things are improving. "It is noteworthy that depreciating forecasts remain much better than those from a year ago with nothing worse than 7% depreciation," Fox said. "A year ago, we were seeing some markets with depreciation rates in the double-digit range."The markets that should be the strongest in home price growth are Texas, Louisiana, Arkansas, Oklahoma, South Dakota, North Dakota and Iowa. A strengthening trend is also spreading to the Midwest with encouraging numbers in parts of Mississippi, Kentucky, Illinois, Indiana and Wisconsin, Veros said.On the other hand, Florida remains weak, as six out of the 10 markets projected to have the greatest price depreciation in the next 12 months are in that state.But the market projected to be the weakest in the next 12 months is Reno/Sparks, Nev., where prices are expected to decline by 7.2%.The strongest growth is expected in the San Diego area, where prices should rise by 3.5%. Other strong markets are expect to be Kennewick / Richland / Pasco, Wash., up 3.4%; Pittsburgh, Pa., up 2.7%; Fargo, N.D., up 2.6%; and the Metropolitan Washington area, up 2.5%.
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