Home prices expected to grow 7% through second quarter of 2022

Home prices nationwide will increase 7% through the second quarter of 2022 with no signs of the hot sellers' market slowing through the next few months, Veros Real Estate Solutions said.

"Buyer demand is strong in nearly every market in the country," Veros CEO Darius Bozorgi said in a press release. "We are squarely in a seller's market and buyers have no choice but to put forward the best offer they can, frequently making offers above asking price, to secure the home they want to own."

Furthermore, low interest rates should continue for the foreseeable future, even with rising inflation, added Eric Fox, Veros' chief economist.

"Despite that, [Federal Open Market Committee members] have not slowed the pace of bond buying," Fox added. "They have their foot on the accelerator full speed ahead and are only thinking about discussing slowing down."

However, not all markets are benefiting from rising values, with several of the lower performers in areas reliant on the oil and petroleum business.

The 7% average annual growth rate through the second quarter 2022 is unchanged from Veros' first quarter report. The hottest market is Boise City, Idaho, where prices are expected to grow 18% over the next year.

Out of the top 10 markets in terms of price growth — all located in the West — four are located in Idaho and a fifth straddles Idaho and Utah.

At the other end of the spectrum, among the areas dependent on oil where price gains should be suppressed include Odessa, Texas with an annual price decline of 0.8%; nearby Midland, up 2%; Lake Charles, La., up 2.8%; Houma-Thibodaux, La., up 3.3%; and Lafayette, La., up 3.5%.

That list also includes Grand Forks, N.D., which while not in the Bakken region, is trying to attract businesses that work in the oil industry there; area prices are expected to rise by 3.7%.

The other laggards include three Illinois cities: Springfield, Peoria and Bloomington, as well as Ames, Iowa.