Single-family home market values nationwide are expected to rise 3.6% in the coming year, according to Veros Real Estate Solutions, which said this is one of the best forecasts in almost two years.
"The top forecast markets continue to show double-digit appreciation," said Eric Fox, vice president of statistical and economic modeling at Veros, in an Oct. 16
Twenty-two out of the 25 top-growing markets are located in West Coast states, Colorado and Florida.
Drivers of home value increases in these states include low housing supply, population growth and modest unemployment rates.
VeroFORECAST, which makes predictions based on modeling strategies and aggregate housing price indexes, has lower expectations for the following year, however.
In the succeeding 13 to 24 months, U.S. property values are expected to grow only by 2.1%.
"The primary driver for this weakening is suspected tightening that the Fed will be doing which will likely cause mortgage interest rates to begin ticking upward," noted Fox.
