With housing markets staying strong, Washington state set to boom
Residential market values will continue their overall upward trends during the next 12 months, with the state of Washington set to explode, according to Veros Real Estate Solutions.
For the first time, one state — Washington — occupies all of the top five market spots for predicted annual appreciation via Veros' VeroForecast.
Markets nationwide will appreciate 4.2%, an increase from last quarter's annual forecast appreciation of 4%. Only 3% of markets are expected to depreciate, which remains unchanged from the previous quarter's forecast.
Seattle holds the top spot in forecasted annual appreciation, with expected home value growth of over 12%. Following Seattle are Bellingham, Bremerton, Kennewick and Mount Vernon, with expected appreciation all near 10%.
"These markets show no signs of letting up as the supply of homes is exceedingly low and the population continues to grow," said Eric Fox, VP of statistical and economic modeling at Veros, in a press release.
Other metropolitan areas in Colorado, Idaho, Oregon and Washington make up the remaining top 10, signifying that the Northwest will have the strongest values in market appreciation.
The bottom 25 markets for annual appreciation include cities in Connecticut, New Jersey, Maine, West Virginia, Maryland, Pennsylvania and New York. Bangor, Maine, is projected to be the worst performing market, with 2% depreciation.
"Some interesting trends are also emerging with this forecast. Parts of California are starting to see an uptick in forecast appreciation with top performing markets such as San Diego, San Jose, Los Angeles and Sacramento expected to have appreciation from 7.5% to 8%, which is up from 6.5% to 7.5% from the last update," said Fox.
"Also, many Texas markets are softening with Dallas and Austin losing 1% in forecast appreciation since the last update," he continued.