San francisco leads positive property price outlook

Photo: JeffGunn

The city is expected to see prices climb 10.5 per cent in the 12 months to June 2016, followed by Denver (10.3 per cent). California accounts for two more of the top five: Santa Rosa (9.9 per cent) and San Jose (9.8 per cent), with Bend (8.7 per cent) completing the list.

The predictions come from Veros' latest market forecast, which predicts 90 per cent of US markets will increase in value over the coming 12 months, up from the previous quarter's 86 per cent. While still reflecting positive numbers, the latest report also predicts declining growth in some Texas cities that are influenced by changes in the oil and gas industries.

The national forecast moved slightly lower to 3.1 per cent annual appreciation, but marks the 12th consecutive quarter in which the index has shown forecast appreciation.

"Housing supplies in the top 5 markets remain tight and, coupled with price run-ups, affordability is becoming an issue," comments Eric Fox, Veros’ vice president of statistical and economic modeling.

"Conversely, the bottom markets continue to reflect the impact of decreasing population trends and continued high unemployment."

"We’ve noticed consistency in the forecast over the last several quarters, especially when compared to forecasts in the 2005-2006 timeframe when the market was forecast to ‘overheat’," he continues. "During that time, we saw appreciation at levels of +25% or more in some of the strongest markets. Now our strongest markets have consistently been forecast to be in the +10% range over the last several quarters."