Top Five Hot and Cold Real Estate Markets

January 14, 2008 No Comments »

Veros Real Estate Solutions released their quarterly review of forecasts for the nation’s real estate market in 2008 today, highlighting a handful of hot and cold markets.

The analysis, which covers the period of December 1, 2007 through December 1, 2008, uses more than 50 factors to examine and develop the pricing trends, including interest and unemployment rates, inventory, inflation, geographical information, and other factors.

Per the report, Veros predicted that the five strongest markets in 2008 will be Wichita, Kansas, with an expected increase of four percent, along with Raleigh/Cary, North Carolina, Sioux Falls, South Dakota, Fargo, North Dakota, and Tulsa, Okalahoma, all seeing gains of three percent.

“The central part of the nation has thus far been largely unaffected by the rapid price appreciations that were seen in many other geographic areas. Consequently, this region is moving forward without distress from the depreciation felt elsewhere and is experiencing minor growth,” the report said.

The predicted five weakest markets include some of the nation’s most heavily-populated regions, including: Sacramento/Roseville, California, expected to fall 12 percent; Cape Coral/Ft. Myers, Florida, slated to drop 13 percent; Palm Bay/Melbourne/Titusville, Florida, forecast to drop 14 percent, and the Riverside/San Bernardino and Modesto, California markets, both predicted to fall 15 percent.

“The heavy decline in the coastal markets, California and Florida, is due to the extended time properties remain on the market, combined with the excess residential inventory much of which is in condominium projects purchased speculatively.”

“Also contributing to this decline is the need of sellers to dispose of their properties by lowering prices, often more than once.”

According to Veros, “the numbers reflect both the current and anticipated prospective impact of the current mortgage credit ‘crisis’.”

The Santa Ana, CA-based company has been developing and releasing these quarterly forecasts since October 2003.

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