The Rise and Fall of Property Values
The 100 metropolitan areas with the largest populations in the U.S. are expected to experience a 4.5 percent appreciation of property value over the next year, according to the Veros Real Estate Solutions’ most recent quarterly forecast. This prediction is seen as highly favorable by Veros, with 97 percent of all metropolitan statistical areas (MSAs) in the U.S. experiencing appreciation and only 3 percent experiencing a decline in value.
Washington and Nevada top the list of metro areas with the highest expected appreciation rates, with Washington having four in the top 10 and Nevada having three. The Western region of the U.S. dominates the list, with Idaho, California, and Colorado also having MSAs in the top 10. Utah and Oregon are expected to see a healthy rise in value too. In fact, all these western states in general are projected to experience a half-percentage point increase overall since Veros’ last forecast, giving them an appreciation rate over the next year between 9 and 12 percent.
In Texas, Midland and Odessa are anticipated to see a healthy rise in value also, although larger MSAs in the Lone Star State like Dallas and College Station—while still expected to see a rise in value—are expected to see a slowdown in the total rate. This is true also in San Jose, California, where the appreciation rate is predicted to drop from over 10 percent to 8.5 percent.
Although states clustered in the west are expected to see the highest rate of appreciation, other regions of the country are expected to perform well too. North Carolina is expected to see property values rising overall, as are a few cities in the Great Lakes Region, specifically in the states Michigan and Indiana. The Indianapolis-Carmel area, for example, is also projected to appreciate 8.5 percent.
On the other hand, Illinois stands out with three MSAs predicted to lose value. At the bottom of the list is Farmington, New Mexico, which is expected to see a drop of 2.2 percent by September 2019. Housing inventory is seen as underpinning these numbers, with the top forecast markets all having a lower supply in comparison to those more slowly growing areas.
About Author: J S Khan