California Markets Improving, Says Veros

Posted by Orb Staff on July 01, 2010 No Comments
Categories : Residential Mortgage

l housing markets in California, along with markets in Louisiana and Texas, are projected to hold up well over the next year, while certain Florida markets will continue to be hammered by price depreciation, according to Veros Real Estate Solutions. The company's latest VeroFORECAST update, which looks ahead through June 2011, projects the five strongest markets to be Shreveport-Bossier City, La. (where prices may grow 4.2%); San Diego/Carlsbad/San Marcos, Calif. (3.4%); Riverside/San Bernardino/Ontario (3.2%); Amarillo, Texas (3.2%); and Houston/Sugar Land/Baytown, Texas (3.1%). "California's Inland Empire area, including Riverside, San Bernardino and Ontario, is showing signs of modest appreciation, joining the state's strongest metro region, San Diego,’ says Eric Fox, Veros' vice president of statistical and economic modeling. The BP oil spill in the Gulf of Mexico has not yet had a negative impact on area prices, Fox adds, noting that the Houston metro area is demonstrating modest improvement. ‘[A]t this point, we can only speculate on the effects, if any, that will result in the residential real estate market from the catastrophic BP oil spill in the Gulf,’ he says. ‘None of our ZIP-code-level models which are on the coast of the impacted coastal areas are yet showing significant forecast differences from those ZIP code models that are further inland and less impacted." In general, Fox says, the Central Plains areas are continuing to hold values in the next year. Texas, Oklahoma, Kansas, Nebraska and east to parts of Louisiana and Arkansas are holding steady, underscoring a weak but consistent mild recovery. Adding a note of optimism, Fox noted VeroFORECAST's 24-month projections show many markets are indicating stronger recoveries two years from now. ‘Although there aren't any overwhelmingly strong appreciating forecasts in the near term, the depreciating ones are milder than they were a year ago," Fox says. Chico, Calif., leads the list of weakening markets, but Florida continues its depreciation trend in many areas along its east coast. Nevada's second-largest market, Reno/Sparks, stays on the list of weakest markets, while Las Vegas avoided inclusion. Utah did not, however; the Salt Lake City and nearby Provo/Orem areas occupy the last two slots in Veros' bottom 10, according to Fox. SOURCE: [link=http://www.Veros.com]Veros Real Estate Solutions

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