DSNews The homepage of the servicing industry
Certain regions that once dragged the housing market down are expected to start giving the industry a lift while national home values are expected to start leveling, according to forecasts from ""Veros Real Estate Solutions"":http://www.veros.com/.
[IMAGE]The quarterly VeroFORECAST report projects that in the 12-month period ending June 1, 2013, prices should improve from last quarter's 0.86 percent forecast depreciation to this period's 0.26 percent forecast depreciation.
""We are definitely seeing a flattening for the first time in years at a national level instead of overall depreciation, which is a positive sign that the anticipated recovery is upon us,"" said Eric Fox, VP of statistical modeling, analysis and research.
Phoenix is expected to appreciate the most at 6.4 percent. Veros stated the continued growth is based on its reduced housing supply, which is down by more than 70 percent from its peak, along with affordability and low interest rates. Also, the lower unemployment rate of 7.4 percent compared to the national rate of 8.1 percent was also named as a factor helping the region.
The Reno-Sparks region in Nevada is expected move in the opposite direction and depreciated by five percent, down further from the 4.7 percent depreciation forecast in the prior quarter. The unemployment rate in the region is 11.5 percent, and housing inventory is high along with the mortgage delinquency rates.
[COLUMN_BREAK]""Overall, the gradual recovery in the housing market is forecast to continue from the previous quarter. VeroFORECAST is showing that many markets are expected to experience signs of appreciation even in some of the previously hard hit markets,"" said Fox.
Veros reported that Texas, Colorado, North Dakota, South Dakota, Nebraska, and Oklahoma are strengthening the most, and markets showing stability include Texas cities such as Houston, Austin, and Dallas and Denver and Boulder in Colorado.
On the other hand, inland California and Nevada have eight of the 10 bottom markets in the forecast. Veros reported that the struggling regions within the state face extremely high unemployment, foreclosure and mortgage delinquency rates. Metro areas expected to disappoint in the coming year are Atlanta, Chicago, and Philadelphia.
Veros is a provider of enterprise risk management and collateral valuation services and combines the power of predictive technology, data analytics, and industry expertise to deliver advanced automated decisioning solutions.
*Forecast for the Five Strongest Markets*
Phoenix-Mesa-Scottsdale, Arizona 6.4 percent
Boise City-Nampa, Idaho 3.8 percent
Boulder, Colorado 3.6 percent
Bismark, North Dakota 3.5 percent
Denver-Aurora, Colorado 3.3 percent
*Forecast for the Five Weakest Markets*
Reno-Sparks, Nevada -5 percent
Fresno, California -4.9 percent
Bakersfield, California -4.7 percent
Modesto, California -4.6 percent
Stockton, California -4.3 percent
