U.S. home prices are forecast to increase 3.7% over the next 12 months, according to Veros Real Estate Solutions’ monthly VeroFORECAST report.
The report shows that home price appreciation continued to slow in March.
Markets that are forecast to see the largest annual increases in home prices include Idaho Falls, Idaho (10.2%): Odessa, Texas (8.8%); Boise City-Nampa, Idaho (8.7%); Bellingham, Wash. (7.8%) and Olympia, Wash. (7.6%).
Markets expected to see the lowest home price appreciation include Alexandria, La. (-1.9%); Hammond, La. (-1.2%); Danville, Ill. (-1.1%); Baton Rouge, La. (-0.8%); and Lafayette, La. (-0.7%).
Louisiana has half of the 10 markets at the bottom of the report’s 100 most-populous markets.
California is expected to see the most softening in home prices – particularly the Los Angeles and San Diego.
The Bay Area is expected to fare only slightly better, with appreciation just above 5%, well below its double-digit readings in the recent past, according to the report.
Eric Fox, vice president of statistical and economic modeling for Veros and the report’s author, says the slowing home price appreciation does not signal an impending crash.
“We do not see a significant depreciation,” Fox says in a statement. “[Rather], simply a slowing down of most markets. The overall housing market is still expected to remain healthy as the fundamentals remain solid including historically low interest rates and a strong economy with low unemployment rates.”
Nevertheless, he adds, “The strength of the past few years is expected to dissipate somewhat in most markets.”
