Markets & Economy

Price appreciation slows in oil- and gas-dependent markets, according to Arch MI/Veros

Although most markets will see home values rise, Texas and North Dakota are a different story

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Roughly 90 percent of housing markets with populations exceeding 100,000 will see home values rise spanning the next 12 to 24 months, according to recent forecasts published by Arch MI and Veros Real Estate Solutions. However, metros that are impacted by changes in the oil and gas industries -- namely Texas markets -- are expected to see a noticeable decline in home value growth. Veros pointed to Houston, along with Midland and Odessa, Texas, as markets where noticeable declines should occur. The firm forecasted 7.6 percent year-to-year growth in Houston last quarter but has revised that outlook to 5.7 percent this quarter. An index compiled by Arch MI suggests Texas has a 32 percent chance of seeing overall home prices decline in the next two years. Nationally, four of the five markets most likely to see price declines are located in Texas: San Antonio, Houston, Austin and Dallas. Fort Worth-Arlington ranks as the sixth most likely market to see values drop. Home prices ...