VeroFORECAST predicts slow and steady home price growth in 2020

by Candyd Mendoza22 Oct 2019

Home values will continue to rise in the largest 100 housing markets over the next 12 months, according to the VeroFORECAST.

The average appreciation rate for residential real estate will hike up 3.7% during 2020, according to Veros Real Estate Solutions. Despite previous predictions of an election-year housing slump, the quarterly increase indicates a moderate and steady growth.

“Veros data shows home price growth in 2020 will be slow and steady,” said Eric Fox, vice president of statistical and economic modeling at Veros. “Despite some clear headwinds facing the economy next year, housing fundamentals will prevail. While we won't experience a boom, we aren’t going to go bust, either.”

The forecast revealed that the 10 strongest markets are concentrated in three states: Washington, Idaho, and Texas. Veros defined strong markets as cities with very low housing supply, which forces prices to climb much faster than other markets.

Two states in the Northwest continue to dominate the highest appreciating markets, with four metros in Washington and three in Idaho, while two are in Texas.

The Q3 2019 VeroFORECAST 10 Strongest Markets

RANK Metropolitan Statistical Area (MSA)  Q3 2019 - Q3 2020
1 Kennewick-Pasco-Richland, WA 8.6%
2 Boise City - Nampa, ID 8.5%
3 Pocatello, ID 8.3%
4 Odessa, TX 8.2%
5 Idaho Falls, ID 8.2%
6 Spokane, WA 7.4%
7 Yakima, WA 7.2%
8 Phoenix-Mesa-Glendale, AZ 6.8%
9 Bellingham, WA 6.7%
10 Midland, TX 6.6%

Meanwhile, VeroFORECAST listed only four depreciating markets over the next 12 months, including Kokomo, Ind.; Grand Forks, ND-Minn.; New Haven-Milford, Conn.; and Cape Coral-Fort Myers, Fla.

The Q3 2019 VeroFORECAST Only 4 Depreciating Markets Over Next 12 Months

RANK Metropolitan Statistical Area (MSA)  Q3 2019 - Q3 2020
1 Kokomo, IN -0.9%
2 Grand Forks, ND-MN -0.7%
3 New Haven-Milford, CT -0.1%
4 Cape Coral-Fort Myers, FL -0.1%