What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Conquering the Mortgage Lender’s Dilemmas

This webinar provides a roadmap for creating a sophisticated, digital-first cost improvement strategy to maximize profits by reducing high processing environments.

HW's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

We need higher mortgage rates to cool the housing market

2020-2024 will have the best housing market demographics and the lowest mortgage rates ever recorded, which could accelerate real home prices too quickly.

MortgageReal Estate

Forecast: These will be the housing market’s strongest and weakest metros

Louisiana's housing market projected to depreciate the most

As home price growth slows, inventory dwindles and residential sales decline, it’s clear the housing market has entered a slowdown.

And although several reports indicate an oncoming rebound this spring, a new analysis from Veros Real Estate Solutions suggests the downturn is likely to last until 2020.

According to the company’s data, homes in the nation’s 100 largest markets are projected to appreciate at a rate of 3.7% over the next 12 months, eventually ending by March 1, 2020.

While a majority of the nation’s housing markets are forecasted to cool down, Veros claims metros in California and Louisiana will be disproportionately impacted.

“Among the states where predictions raise concern are Louisiana, which has half of the ten markets at the bottom of the report’s 100 most-populous markets, and California,” Veros writes. “The Golden State is expected to continue softening significantly with forecast appreciation for both the Los Angeles and San Diego markets falling well under 5%. The Bay Area is expected to fare only slightly better, with appreciation just above 5%, well below its double-digit readings in the recent past.”

These appreciation declines have encouraged Veros to reduce its overall market forecast down from 3.9% last quarter to 3.7% this quarter.  

Despite this downturn, Veros VP of Statistical and Economic Modeling Eric Fox says the decline shouldn’t signal an impending crash.

“We do not see a significant depreciation, but simply a slowing down of most markets. The overall housing market is still expected to remain healthy as the fundamentals remain solid including historically low interest rates and a strong economy with low unemployment rates,” Fox said. “Nevertheless, the strength of the past few years is expected to dissipate somewhat in most markets.”

Here are the top five strongest markets predicted by Veros:

5. Olympia, Washington, with a forecasted appreciation of 7.6%

4. Bellingham, Washington, with a forecasted appreciation of 7.8%

3. Boise City-Nampa, Idaho, with a forecasted appreciation of 8.7%

2. Odessa, Texas, with a forecasted appreciation of 8.8%

1. Idaho Falls, Idaho, with a forecasted appreciation of 10.2%

Here are the top five weakest markets predicted by Vero:

5. Lafayette, Louisiana, with a forecasted appreciation of -0.7%

4. Baton Rouge, Louisiana, with a forecasted appreciation of -0.8%

3. Danville, Illinois, with a forecasted appreciation of -1.1%

2. Hammond, Louisiana, with a forecasted appreciation of -1.2%

1. Alexandria, Louisiana, with a forecasted appreciation of -1.9%

Most Popular Articles

Josh Team out as Keller Williams president

Josh Team is out at Keller Williams, not long after he received what appeared to be a promotion. He announced his resignation on Facebook.

Feb 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please