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Thursday, Mar 28, 2024
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Report: Home Prices Set to Rise Over Next 12 Months

San Diego home prices are forecast to rise 3.5 percent over the next 12 months, making it the strongest residential market in the nation, according to a Dec. 22 report from Veros Real Estate Solutions, a Santa Ana mortgage services firm.

Veros’ forecast uses advanced analytics and micro-market data, and has been around for eight years.

About 40 percent of the nation’s metro markets are forecasted to appreciate in home value over the next 12 months, but the rise will be mild, the Veros report said.

Following the San Diego/Carlsbad/San Marcos market, the next strongest markets for home appreciation next year are Kennewick/Richland/Pasco in Washington; Pittsburgh, Pa.; Fargo, N.D.; and the Washington, D.C., area.

The weakest markets are in Reno/Sparks, Nev., followed by four markets in Florida, the report said.

In a related story, a report out of the National University System Institute for Policy Research said that San Diego’s housing prices aren’t likely to return to pre-recession levels for at least eight to 10 years.

Using the Standard & Poor’s/Case-Shiller home price index, local home values in 2010 returned to the levels of 2003, but adjusted for inflation, are about where they were in 1999, according to the report from the local think tank.

And while the plummeting prices made homes here more affordable to a larger part of the population (now at 51 percent), the prices are still the 15th highest in the nation, and the market is the 12th least affordable, the report said.

The National University report forecast that next year prices will continue to rise, but only slightly. “We believe it will be several years before housing comes back into equilibrium with the region’s population, job and income growth,” said economist Kelly Cunningham with the research institute.

— Mike Allen

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