Study sees Raleigh-Durham real estate appreciation among highest in U.S.
Triangle Business Journal - July 26, 2006
A study released Tuesday predicts that the Raleigh-Durham area will post one of the nation's five highest home value appreciation rates over the next 12 months.
Research released by Veros Real Estate Solutions projects that home prices in Raleigh and Durham will rise about 8 percent over the next year, tying Tampa, Fla., for the fourth-highest rate.
Seattle is the only market expected to hit double-digit growth, at about 11 percent. San Bernardino, Calif., and Jacksonville, Fla., follow with home appreciation rates pegged at 9 percent.
Rounding out the top for growth in home values are: Riverside, Los Angeles and Oakland, Calif.; Tucson, Ariz.; and Nashville, Tenn., all at 7 percent.
In contrast, Rochester, N.Y., is expected to top the list of 10 markets with the most home value depreciation, 4 percent.
Other markets projected to see a decline in home values are: Worcester, Mass; Sacramento, Calif.; Memphis, Tenn.; and Dayton, Ohio. Also in the bottom 10 are Grand Rapids, Mich.; Boston; Cleveland; Detroit and Fall River, Mass. Home values in those cities are predicted to remain flat.
"We expect some home price appreciation on the hot market side, but nothing compared to what we've seen in the past," said Eric Fox, Veros vice president of technology, in a written statement. "There are no 25 percent-plus markets in our projections. Appreciation is slowing way down."
The methodology used by Veros to predict appreciation rates relies on 50 metrics in its calculations such as interest rates, unemployment rates, inflation, population, buildable land and current inventory.
Based in Santa Ana, Calif., Veros develops software used to predict mortgages and gauge the value of property.