Half of the Top 10 Performing Markets Are Located in Idaho
SANTA ANA, Calif., July 7, 2021—Today Veros Real Estate Solutions, an industry leader in enterprise risk management and collateral valuation services, released its Q2 2021 VeroFORECASTSM data that anticipates home prices will continue to appreciate at high levels during the next 12 months in the 100 most-populated markets at a rate consistent with our previous update one quarter ago. Veros is committed to the data science of predicting home value based on rigorous analysis of the fundamentals and interrelationships of numerous economic, social, and geographic variables as they pertain to home value. This data-driven approach indicates that many of the top-performing cities are trending upwards at a double-digit rate.
By Q2 2022, the overall average forecast is up 7% which is consistent with the annual forecast made in this 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,” said 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,” said 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 record-low interest rate environment is likely to be in place for the foreseeable future. “The Federal Open Market Committee participants recently indicated that risks to inflation were weighted to the upside. Despite that, they have not slowed the pace of bond buying. They have their foot on the accelerator full speed ahead and are only thinking about discussing slowing down,” added Fox.
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, UT (located on the Utah-Idaho border). Many of these markets are benefiting from population in-migration as consumers move around the country.
The 10 Strongest-Performing Markets Over Next 12 Months
|Rank||Metropolitan Statistical Area (MSA)||Forecast Q2-2021 - Q2 - 2022|
|1||BOISE CITY, ID||18.0%|
|4||COEUR D'ALENE, ID||15.0%|
|5||SALT LAKE CITY, UT||14.8%|
|6||IDAHO FALLS, ID||14.4%|
|7||COLORADO SPRINGS, CO||13.7%|
|8||SPOKANE-SPOKANE VALLEY, WA||13.0%|
The cities that appear on the list of ten 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.
The 10 Least-Performing Markets Over Next 12 Months
|Rank||Metropolitan Statistical Area (MSA||Forecast Q2 2021 – Q2 2022|
|3||LAKE CHARLES, LA||2.8%|
|9||GRAND FORKS, ND||3.7%|
The quarterly VeroFORECAST reports to clients by subscription and to industry media in a summary overview. The report is a projected increase 12-months forward. The current report is based on data from 337 Metropolitan Statistical Areas (MSAs) that include 16,950 zip codes, 1033 counties, and represent 83% of U.S. residents.
Source: Veros Real Estate Solutions
This information is intended for use by the media for economic reporting and should only be used for physical or digital publication or broadcast, in whole or in part, must be sourced as coming from Veros Real Estate Solutions. The company name should appear with the first reference of the data. If the data are illustrated with maps, charts, graphs or other visual elements, the company name must be visible on the screen or website. For questions, analysis, interpretation of the data, or permission to reproduce, contact Brian Fluhr at BFluhr@veros.com.
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 numerous technical papers on probabilistic and statistical methods.
About Veros Real Estate Solutions
A mortgage technology innovator since 2001, Veros is a proven leader in enterprise risk management and collateral valuation services. The firm combines the power of predictive technology, data analytics, and industry expertise to deliver advanced automated solutions that control risk and increase profits throughout the mortgage industry, from loan origination to servicing and securitization. Veros’ services include automated valuation, fraud and risk detection; portfolio analysis, forecasting, and next-generation collateral risk management platforms. Veros is the primary architect and technology provider of the GSEs’ Uniform Collateral Data Portal® (UCDP®). Veros also works closely with the FHA to support its Electronic Appraisal Delivery (EAD) portal. The company is also making the home buying process more efficient for our nation’s Veterans through its appraisal management work with the Department of Veterans Affairs. For more information, visit www.veros.com or call 866-458-3767.