Veros Real Estate Solutions has announced that its forecast shows the real estate recovery in California has kicked into high gear. The report reveals a dramatic increase in San Francisco’s forecast over the previous quarter, and now four of the five strongest markets in the country are in the Golden State. These results are from the company’s VeroFORECAST real estate market forecast for the 12-month period ending September 1, 2014.
Veros’ future home price index (HPI) forecast indicates that most of the country is now looking to appreciate during the next 12 months, with only 5 percent of the markets expected to decline as compared to the 10 percent cited in the last update. Additionally, those declines are expected to be minor at -2 percent at the forecast’s lowest level. The HPI indicates that, on average for the top 100 metro areas, Veros expects 4.8 percent appreciation over the next 12 months. This is the fifth consecutive quarter where the index has shown forecast appreciation and represents an upswing of over 50 percent from last quarter’s 3.1 percent national forecast.
“Even in previous strong real estate markets there have always been a few markets that did not perform well, so this is not unusual,” said Eric Fox, Veros’ vice president of statistical and economic modeling. “The national split between appreciating and depreciating markets, at roughly 95:5 respectively, continues to be a positive trend from the last several quarterly updates,” he noted.