According to various reports, it appears that home prices are still going to rise in 2014, but the only question is what kind of increase to expect. Analysts from Morgan Stanley and Barclays expect home prices to appreciate by 7% nationally, but new information from Veros Real Estate Solutions suggests that home prices will only appreciate by 3.4% in the top 100 metro areas.
Those figures are courtesy of Veros’ VeroFORECAST national real estate market forecast for the 12-month period ending March 31, 2015. That’s down from last quarter’s forecast of a 5.1% increase for the following 12 months.
“The wave of appreciation may have crested, but it has been an impressive recovery in many respects,” said Eric Fox, Veros’ vice president of statistical and economic modeling. “The market is stabilizing and the overall outlook is very positive. However, we won’t see the rapid gains we have experienced in prior quarters. Those days appear to be behind us for the foreseeable future.”
Fox notes that their average national forecast for the next 12 months is 3.4% appreciation, but the forecast for the 12 months following that (months 13-24) is only 2%.
But there is positive news for some cities where the large improvements haven’t disappeared completely.
Click below for the five markets that Veros expects to experience the highest home price appreciation over the next 12 months.