There aren’t many as down on housing prices for the next 12 months than Veros Real Estate Solutions.
Its 2022 Q4 VeroFORECAST anticipates home prices will turn negative overall and depreciate on average by -0.5% for the next 12 months.
In what the firm said is a “significant drop” from the 1.5% annual appreciation forecast just one quarter ago, its chief economist, Eric Fox, shared that this is the first time in over a decade that Veros’ average house price forecast has gone negative.
Don’t Expect ‘Extreme Depreciation’
Vero expects a softening market, not one that suffers extreme depreciation.
“This is not going to be a repeat of what we saw in 2007-2008,” Fox said in prepared remarks.
“Interestingly, many markets which were the big housing market winners of the past year or two are now forecast to be some of the worst-performers,” Fox said.
That list includes San Francisco, Seattle, Austin, Boise, San Jose, and Las Vegas — markets expected to see a depreciation of 5% to 7% in the coming 12 months.
Veros said North Carolina (with five markets in its Top 10) and middle markets Wichita and Lincoln are again in the Top 5.