While national statistics show an overall slowdown in home sales and a drop in prices, some individual markets are experiencing growth due to healthy local economic conditions and other factors.
The top housing markets expected to see the strongest growth in home values through the second quarter of next year are in North and South Carolina, Texas, Utah and New Mexico, according to a forecast released today.
A forecast compiled by Santa Ana, Calif.-based Veros Real Estate Solutions expects the top five strongest housing markets in terms of price growth to be: Raleigh-Cary, N.C., at 7 percent growth; Austin-Round Rock, Texas, at 6 percent; Charlotte-Gastonia-Concord, N.C.-S.C., at 6 percent; Salt Lake City, Utah, at 6 percent; and Albuquerque, N.M., at 5 percent.
The forecast uses Veros’ predictive technology, which applies more than 50 metrics in the calculations, including interest rates, current inventory, unemployment rates, inflation, population and buildable land, among other metrics.
The forecast looks at expected value movements from the third quarter of 2007 to the second quarter of 2008.
“Despite the turmoil we’re seeing in the markets right now there are some areas of the country where real estate is holding onto its value, and some where it is actually appreciating,” said Veros CEO Darius Bozorgi. “Naturally, we uncovered some markets where home values are falling fairly quickly and will continue to do so over the next year.”
The markets expected to see the most rapid depreciation in home values throughout the same period are: Palm Bay-Melbourne-Titusville, Fla., with a 9 percent expected decline in values; Sacramento-Arden-Arcade-Roseville, Calif., with an 8 percent expected drop; Sarasota-Bradenton-Venice, Fla., with a 7 percent decline; Cape Coral-Fort Myers, Fla., down 7 percent; and Riverside-San Bernardino-Ontario, Calif., down 7 percent.