The latest US housing market forecast for appreciation is showing that national rates will remain steady through 2020.
US Real Estate Appreciation Rate for the Next Year
According to a recent report from VeroFORECAST, real estate appreciation across the nation is forecast to settle at +3.7%. This is the projected average appreciation rate for residential real estate over the next 12 months (through June 2020) for the top 100 US markets.
Real estate news has been buzzing with the notion that the housing market is drastically cooling down. The decline in real estate appreciation over the last 4 quarters from Veros’ initially projected rate of +4.5% has been evidence to back up a soft market. However, even though declining price growth is apparent and a shift in real estate trends is tangible, Eric Fox, Veros VP of Statistical and Economic Modeling and the report’s author, believes that the market is healthy overall:
This flattening indicates that although there is definite softness overall in the housing market the fundamentals are healthy. One potential contributing factor we saw in the models is some softening of mortgage interest rates, which is helping to prop up values and stem the decline.
The decline in mortgage rates has helped more buyers get their foot into the market, driving demand. And when demand for housing increases, so do property values.
Top and Bottom 10 US Housing Markets 2019
It seems that the Northwest will dominate this year when it comes to property value gains. Idaho and Washington State seem to be the best places to invest in real estate this year for appreciation. Texas also has two spots in the top 10 list even though the market as a whole is forecast to soften.
Here are the top 10 US housing markets for real estate appreciation, as listed by the report:
- Odessa, TX: +9.7%
- Coeur D’Alene, ID: +9.5%
- Idaho Falls, ID: +9.4%
- Boise City-Nampa, ID: +9.1%
- Midland, TX: +8.0%
- Bellingham, WA: +7.8%
- Spokane, WA: +7.4%
- Kennewick-Pasco-Richland, WA: +7.2%
- Pocatello, ID: +7.2%
- Yakima, WA: +7.2%
The report also gives special mention to the Midwest real estate markets of Michigan, Ohio, and Indiana. The Arizona housing market (Phoenix and Tucson specifically), too, will experience strong real estate appreciation this year.
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Related: How to Calculate Real Estate Appreciation
Even with the positive national outlook, 5% of the US markets studied in the report are forecast to depreciate. Here are 10 cities that will experience the highest depreciation over the next year:
- Grand Forks, ND-MN: -1.9%
- Bridgeport-Stamford-Norwalk, CT: -1.7%
- Baton Rouge, LA: -1.6%
- Lafayette, LA: -1.2%
- Norwich-New London, CT: -1.0%
- Danville, IL: -0.9%
- Shreveport-Bossier City, LA: -0.7%
- Hot Springs, AR: -0.6%
- Jonesboro, AR: -0.4%
- Houma-Bayou Cane-Thibodaux, LA: -0.3%
If you own a property in one of these cities and are looking to get a high return soon, you may want to sell now. List your property for free in the Mashvisor Property Marketplace.
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