U.S. home prices are forecast to increase 3.7% in the 12 months ending June 2020, according to the latest VeroFORECAST report from Veros Real Estate Solutions.
That’s down significantly from a projected appreciation rate of 4.5% during the 12 months ended June 2019.
“This flattening indicates that although there is definite softness overall in the housing market the fundamentals are healthy,” explains Eric Fox, vice president of statistical and economic modeling for Veros, in a statement. “One potential contributing factor we saw in the models is some softening of mortgage interest rates, which is helping to prop up values and stem the decline.”
Roughly 5% of markets are projected to see average home prices depreciate over the upcoming year, the report shows. That’s up from 3% two years ago.
Markets forecast to see the strongest growth in home prices over the next year include Odessa, Texas (+9.7%); Coeur D’Alene, Idaho (+9.5%); Idaho Falls, Idaho (+9.4%); Boise City-Nampa, Idaho (+9.1%); and Midland, Texas (+8.0%).
Markets expected to see the highest depreciation include Grand Forks, N.D.-Minn. (-1.9%); Bridgeport-Stamford-Norwalk, Conn. (-1.7%); Baton Rouge, La. (-1.6%); Lafayette, La. (-1.2%); and Norwich-New London, Conn. (-1.0%).
The report is based on data from 343 metropolitan statistical areas that include 13,719 zip codes, 987 counties, and represent 82% of U.S. residents.