Veros Real Estate Solutions’ (Veros®) Q2 2023 VeroFORECAST reveals a strengthening housing market with an anticipated 1.7% average increase in home prices over the next 12 months. The market grapples with low supply as homeowners hold onto low mortgage rates. Despite the Federal Reserve pausing interest rate hikes, mortgage rates are projected to be around 6.5% to 7%, driving some buyers back to the market.
Affordability remains a key concern for buyers. Western markets, including San Francisco and Seattle, show signs of weakness, while the Midwest and Eastern states become hotspots for affordability and stability. Cities like Rochester, Lincoln, and Cincinnati are thriving, attracting buyers seeking the American dream without compromising financial security. The top-performing markets are expected to appreciate at 5% to 6.5%, while the least-performing markets may witness modest depreciation of -2.5% to -4%.
The report, based on data from 327 Metropolitan Statistical Areas, provides insights into market trends and projections for the next 12 months.
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