Veros Real Estate Solutions says its VeroFORECAST real estate market report for the 12-month period ending June 1, 2013, suggests that the U.S. housing market is exhibiting stronger signs of recovery.
The new forecast predicts a national depreciation rate of 0.26% over the next year. The VeroFORECAST report for the previous quarter predicted a 0.85% depreciation rate.
‘VeroFORECAST is showing that many markets are expected to experience signs of appreciation even in some of the previously hard hit markets,’ says Eric Fox, vice president of statistical modeling, analysis and research.
Phoenix is predicted to be the top performing market, with a forecasted 6.4% appreciation. The continued growth is based on the drastically reduced housing supply, which has plummeted by more than 70% from its peak, as well as greater affordability and low interest rates, which are creating demand.
Other strong markets include Boise City-Nampa, Idaho; Boulder, Colo.; Bismark, N.D.;Â and Denver-Aurora, Colo.
The Reno-Sparks region in Nevada has moved into the bottom spot of the housing market, with a projected depreciation of 5%, down further from the 4.7% depreciation forecast in the prior quarter. Pressure on pricing comes from an unemployment rate of 11.5% and stubbornly high housing inventory in conjunction with high foreclosure and mortgage delinquency rates.