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Homevestors of America expects home prices to surge in the coming months, recovering from the winter storms that plagued large swaths of the country, limiting home prices and home sales.
"The upward pressure on home prices—economic growth and a history of slow home construction—eased somewhat due to the horrible winter weather. But we think there are a number of markets nationwide that will run up against a housing shortage that will boost home prices even higher than most of us initially expected as the spring thaw gets underway," said David Hicks, co-president of HomeVestors.
Three Texas cities led the list—HomeVestors noted Fort Worth, Houston, and Austin as prime metros for home price growth.
"The economy has been growing quickly in these markets, there are lots of renters, and there aren't many foreclosed properties to provide competition," noted Ingo Winzer, president and founder of Local Market Monitor.
Hicks noted that all major markets in Texas are experiencing a shortage of for-sale properties, and homes are selling quickly.
HomeVestors quarterly data is developed by Local Market Monitor, which categorizes 300 U.S. markets according to different investor risk preferences, ranking metros as Dangerous, Speculative, Medium Risk, and Low Risk.
"For those who can handle more risk, markets ranked as 'speculative' and 'medium risk' in the data could provide more upside potential if the purchasers pay attention to sound buying principles and know their local market," said HomeVestors co-president, Ken Channell.
Markets ranked as "speculative" include seven cities in Ohio and five in New York. 164 markets are listed as "medium risk," including 11 in Texas and 10 in California.
The six cities ranked as "dangerous" (Rockford, Illinois; Decatur, Alabama; Johnstown, Pennsylvania; Anniston-Oxford, Alabama; Rocky Mount, North Carolina; Decatur, Illinois) are all characterized by high unemployment and negative job growth.
