California Expected To Lead Home Price Growth In Coming Months
San Francisco is expected to dominate the market with a 12.7% increase in home prices, says Veros, a predictive technology software. Those familiar with San Francisco know that both homes for sale and rent prices have skyrocketed as of late, but why? Veros notes that San Francisco is having a “serious housing shortage,” that is combined with “historically good affordability” and a lower unemployment rate than the rest of the nation at 6.7 percent. The national average was 7.6% as of May.
Los Angeles, San Jose, Midland, TX and Phoenix round out the top 5 metros with the greatest price appreciation. Florida, Washington, Colorado, North Dakota and Idaho also appeared strong in the forecast, while New York, Connecticut and New Jersey are expected to see a weakening in prices.
Veros track 969 counties, 324 metro areas and 13,502 zip codes. Of the top 100 markets, Vero’s home price index (HPI) projects a 3.1% increase, marking the fourth straight quarterly gain. Nearly 90 percent of U.S. markets covered should see a bump in prices, up from 75% in the previous quarter.
Eric P. Fox, VP of statistical and economic modeling for Veros, says, “What we are seeing now indicates a return to a healthy market with improvements appearing in a conservative yet correcting manner.”
Translating down to agents surveying the market, expectations have been optimistic for seller’s looking to list their homes. Eighty-six percent of agents believe prices will rise over the next few months. The same percentage say now is a good time to sell a home.
Low inventory and multiple offers on the same homes are the leading factors for agents to view the market in favorite of sellers. Agents have also observed a surge in new agents in the area—adding to the already competitive nature of the market.
What has the market been up to in your area?