Veros Real Estate Solutions’ Q2 2021 VeroFORECAST data suggest that home prices will continue to appreciate at high levels during the next 12 months in the 100 most populated markets.
By Q2 2022, the overall average forecast is up 7%, which is consistent with the annual forecast made in the company’s forecast one quarter ago. The continued year-over-year increase is heavily driven by robust markets, primarily in the West. Five of the strongest-performing markets are located in Idaho.
“The VeroFORECAST data continues to exhibit upward price pressure in nearly all markets throughout 2021 and into 2022,” says Darius Bozorgi, CEO of Veros Real Estate Solutions. “Buyer demand is strong in nearly every market in the country. 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.”
“Right now, buyers are acting on pent-up demand, and sellers are seeking top dollar for their homes,” adds Eric Fox, Veros Real Estate Solutions’ chief economist. “The tight inventory of for-sale homes, coupled with low interest rates, are keeping prices strong across the country.”
The western portion of the country leads the nation in price increases. Cities in Arizona, Colorado, Idaho, Utah and Washington comprise the entirety of the Top 10 metro areas. Notably, all of these top markets have double-digit appreciation values above 12%. Boise will be up an astonishing 18% by Q2 2022. Four other markets in Idaho are among the top ten markets, including Pocatello, Coeur d’Alene, Idaho Falls, and Logan, Utah (located on the Utah-Idaho border). Many of these markets are benefiting from population in-migration as consumers move around the country.
The cities that appear on the list of 10 least-performing markets are found in Illinois, Iowa, Louisiana, North Dakota and Texas. Of the 100 most-populated markets, the two markets that will see the slowest growth, and a potential decline, are located in Texas oil country – Odessa and Midland – although other markets in Texas are expected to do very well.