A new report from California-based analytics firm Veros Real Estate Solutions projects that homes in a higher percentage of markets will increase in value over the next year compared to the previous quarter.
The latest quarterly VeroForecast report found that 90% of housing markets should appreciate in value over the next 12 months versus 86% in the last quarter. At the same time, the forecast for the amount of appreciation leveled off a bit to an average of 3.1% versus 3.2% in the prior quarter.
The top 25 markets for price appreciation were all located in seven states: California, Colorado, Florida, Washington, Texas, Oregon and Nevada. While Texas remained on this list, its presence has fallen notably, Veros said in a July 9 news release. Additionally, Texas now features two cities on the list of bottom 25 markets in terms of price depreciation — all a result of the impact of a softening in oil and gas markets.
"There is a noticeable decline in the growth prediction for those areas that are impacted by changes in the oil and gas industries," Veros said in the news release. As examples, it pointed to Houston where the annual forecast for price appreciation fell to 5.7% from 7.6% the previous quarter. Similar movements were seen in Midland and Odessa, while cities like Dallas and Austin that are less impacted by oil and gas remained healthy.
Including Texas, six of the 15 states that had markets on the bottom 25 list had more than one housing market in their state featured. The other states included Alabama and North Carolina with three markets each and New Jersey, Maine, Louisiana and New York with two each.
Overall, the Veros report found that population trends were forcing down the weaker markets, while short supply was actually causing affordability issues in the top ones.
"Housing supplies in the top five markets remain tight and, coupled with price run-ups, affordability is becoming an issue," said Eric Fox, Veros' vice president of statistical and economic modeling, in the release. "Conversely, the bottom markets continue to reflect the impact of decreasing population trends and continued high unemployment."
