Uncategorized May 8, 2014

San Jose / Sunnyvale / Santa Clara predicted to see 9.7% Gain In Housing Prices this Year.

The housing market has improved over the past few years, and, according to a new report from Veros Real Estate Solutions, 2014 should be a decent year, but not nearly as strong in performance as the last few years. Although analysts from Barclays and Morgan Stanley expect home price gains to be in the seven-percent range nationally, Veros is forecasting a 3.4 percent increase in the 100 top metro areas. Eric Fox, Veros’ vice president of statistical and economic modeling, and developer of the report, said, “The wave of appreciation…has been an impressive recovery in many respects. The market is stabilizing and the overall outlook is very positive. However, we won’t see the rapid gains we have experienced in prior quarters. Those days appear to be behind us for the foreseeable future.”

Of course, some cities will see better housing markets than others. Here are the top three and worst three housing markets:

Third best: Midland, TX

Midland, in West Texas, is enjoying the benefits of the current energy boom, and because job demand is high, so is housing demand. Veros expects homes in Midland to appreciate by 9.3 percent in the next 12 months.

Second best: Los Angeles / Long Beach / Santa Ana, CA

The City of Angels’ warm climate continues to draw people in. Veros believes home prices in the Los Angeles area will grow by 9.3 percent as well.

BEST housing market: San Jose / Sunnyvale / Santa Clara, CA

Down at the southern end of San Francisco Bay, this metro area should see gains of 9.7 percent over the next 12 months, nearly three times the national average.

Third worst: Fayetteville, NC

Fayetteville, home to Fort Bragg, is not home to a good housing market, with prices expected to fall 1.6 percent over the next year.

Second worst: Norwich / New London, CT

This Connecticut metro area is expected to see home price declines of 1.7 percent over the next year.

Worst housing market: Atlantic City, NJ

Atlantic City looks like a bad bet for housing prices over the next 12 months. The Veros study predicts home prices in the area to drop 2.5 percent over the next year.