Veros warns housing hot spots won't stay as hot
Mortgage interest rate stability still expected
A webinar held today by HousingWire and Veros asked where housing prices are going in 2014.
Veros is exceptional in that it can use predictive technology to chart where it thinks prices will land in 2014 and beyond. Considering the recent talk of a housing bubble, let's cut straight to the top five markets.
The top four are in California; Los Angeles, San Diego, San Francisco and San Jose. All of these reached more than 10% home price appreciation going into next year, with prices projected to go up more than 15% in San Francisco alone. Phoenix rounded out the list.
So let's pop the bubble talk right now. As Eric Fox, the Veros VP of statistic and economic modeling, prices are up for sure, but will not appreciate at a greater rate.
So these top markets are now at 10%+. That rate of growth will slow to around 5%, Fox said, as those markets work through supply issues.
Affordability will remain in the markets for the next two years as "we don't see interest rates getting out of hand," Fox said.