The past year showed a rise in housing markets in the Northwest, and a cooling in the West in previously hot markets such as San Francisco. It seems that trend will continue into next year.
A new report from Veros Real Estate Solutions, which works in enterprise risk management and collateral valuation services, shows the strongest and weakest markets for the next 12 months ending in Sept. 1, 2015.
However, the trials that plagued the California housing market in 2016 aren’t expected to get too much better in 2017 as the real estate market is projected to face another year of supply shortages and affordability constraints, according to the “2017 California Housing Market Forecast” released by the California Association of Realtors.
Of the top 25 markets, 15 were confined to four states in the Northwest, which is almost unprecedented, according to the report.
“In markets with this level of national appreciation it is most common to see a broad distribution of markets contributing to the rise,” said Eric Fox, Veros vice president of statistical and economic modeling.
“What is remarkable from where we stand today is the possible concentration risk when home price appreciation and market activity become highly clustered in only a few regional areas,” Fox said.
The forecast from Veros says the housing market will heat up in the Northwest, however while it is still clearly a seller’s market in the Northwest, some signs seem to be pointing towards a shift to a more balanced market, according to a report from Northwest Multiple Listing Service.
Here are the top five strongest markets predicted by Vero:
5. Boise City, Idaho, with a forecasted appreciation of 9.7%
4. Seattle, Washington, with a forecasted appreciation of 10.2%
3. Fort Collins, Colorado, with a forecasted appreciation of 10.3%
2. Boulder, Colorado, with a forecasted appreciation of 10.5%
1. Denver, Colorado, with a forecasted appreciation of 10.8%
Contrarily, here are the top five weakest markets predicted by Vero:
5. Waterloo, Iowa, with a forecasted depreciation of 1.3%
4. Longview, Texas, with a forecasted depreciation of 1.5%
3. Cumberland, Maryland, with a forecasted depreciation of 1.7%
2. Poughkeepsie, New York, with a forecasted depreciation of 2.3%
1. Atlantic City, New Jersey, with a forecasted depreciation of 2.4%