5 Housing Markets Poised for Biggest Rebounds

October 27, 2011

Bismarck, N.D., is expected to see some of the strongest gains in home appreciation in the next year, according to a new report from Veros Real Estate Solutions, a risk management and collateral valuation service. With a low unemployment rate at 3.5 percent and a growing economy, Bismarck is forecasted to see housing values appreciate at 5.6 percent, according to Veros. 

Veros projects that the following five markets will post the strongest gains in home appreciation over the next year: 

  • Bismarck, N.D.: 5.6 percent
  • Honolulu: 2.9
  • Fargo, N.D.-Minn.: 2
  • Harrisburg/Carlisle, Pa.: 1.9
  • Pittsburgh, Pa: 1.9

The unemployment rate and housing supply tend to be the biggest factors differentiating the projected strong markets from the weak. The projected five weakest housing markets in the next year, according to Veros, are: 

  • Bakersfield, Calif.: -5.5 percent
  • Reno/Sparks, Nev.: -5.1
  • Deltona/Daytona Beach/Ormond Beach, Fla.: -5.1
  • Las Vegas/Paradise, Nev.: -5
  • Fresno, Calif.: -4.8

“Overall, the recovery in the housing market is limited to just a few markets and is taking a long time to occur,” says Eric Fox, Veros vice president of statistical and economic modeling. “The encouraging news is that many markets are no longer expected to be rapidly declining.” 

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News