Forecast Reveals Lowest Percent of Depreciating Markets in 14-Year History
Santa Ana, Calif. – October 04, 2017 – Veros Real Estate Solutions (Veros), an award-winning industry leader in enterprise risk management, collateral valuation services and predictive analytics, today reports that residential market values will continue their overall upward trends during the next 12 months with nearly all markets forecast to appreciate even if slight or modest and overall annual forecast appreciation of +4.0%, which is higher than last quarter’s forecast appreciation of +3.7%.
This insight comes from the company’s most recent VeroFORECASTSM, a quarterly national real estate market forecast for the 12-month period ending September 1, 2018.
“Our Q3 forecast reveals the largest percentage of markets we have ever seen that are forecast to appreciate, with only 3% of markets expected to depreciate – showing continued general market strengthening for the overall U.S. residential real estate market,” says Eric Fox, VP of Statistical and Economic Modeling at Veros. “All of the Top 10 forecast markets are exclusively in the Northwestern states of Washington, Colorado, and Idaho with the top three markets being in the state of Washington including – Mount Vernon, Seattle, and Bellingham.”
These top three markets have forecast appreciation greater than 10% for the next 12 months, and are all characterized by strong population growth, low unemployment, and a low supply of housing inventory.
20 of the bottom 25 markets are either in the Northeast portion of the country or in the south. Moreover, most are characterized as smaller metropolitan areas. Atlantic City is forecast to be the worst performing market over the next year with 2.0% depreciation expected.
“On the contrast to our top 3 markets, these markets are characterized by either flat population trends or significant declines spanning several decades,” Fox explains.
“Some interesting trends are emerging with this forecast. Appreciation in Boston is expected to continue to accelerate going from 6.5% during the last update pushing to close to 8% during this update,” Fox elaborates. “Also, we see some softening in South Florida with many of these markets along the Southeast coast to have their forecast appreciation 1%-2% lower than during the last quarterly update. It is not yet evident how the dramatic Hurricane-effected areas will ware, but we should be able to begin to see this impact as we look at next Quarter’s Forecast.”
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Additional forecasts and infographics for U.S. markets available to the press upon request.
About Veros Real Estate Solutions
Veros Real Estate Solutions, a proven leader in enterprise risk management and collateral valuation services, uniquely combines the power of predictive technology, data analytics and industry expertise to deliver advanced automated decisioning solutions. Veros products and services are optimizing millions of profitable decisions throughout the mortgage industry, from loan origination through servicing and securitization. Veros provides solutions to control risk and increase profits including automated valuations, fraud and risk detection, portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is headquartered in Santa Ana, Calif. For more information, please visit www.veros.com or call (866) 458-3767.
About Eric Fox, VP of Statistical and Economic Modeling:
Eric Fox received his M.S. in Statistics and B.S. in Mathematics and Economics from Purdue University, and has 30 years of industrial experience in statistical and econometric modeling, probabilistic life methodology development, statistical training, probabilistic design software development, and probabilistic financial/competitive analysis. Fox has published more than 20 technical papers on probabilistic and statistical methods.
Jennie L. Craig
Veros Press Desk
714.415.6300, option 6