Housing markets in these 3 states are seeing the most home-price growth

Western states continue to top the list of markets with the greatest home-price growth, with two in particular leading the list of those with the greatest appreciation. Among the top 10, markets in Idaho and Washington each claim four spots on the list for the most growth.

Not far behind is Texas, which claims the remaining two spots on the top 10 list, according to the latest from Veros Real Estate Solutions.

Veros' forecast for the second quarter of 2019 projects a 3.7% appreciation rate for residential real estate in the nation's 100 largest markets through June 2020. This is unchanged from the previous quarter, signaling a leveling out after a four-quarter decline from a projected appreciation rate of 4.5% in 2018.

"This flattening indicates that although there is definite softness overall in the housing market, the fundamentals are healthy," explained Eric Fox, Veros VP of statistical and economic modeling and the report's author. "One potential contributing factor we saw in the models is some softening of mortgage interest rates, which is helping to prop up values and stem the decline." 

But the story for the top 10 markets is different, as appreciation for those markets is expected to reach 8.3%, up slightly from last quarter's 7.9%.

Leading the list is the oil-market Texas metro of Odessa with a growth rate of 9.7%. Another Texas market, Midland, ranks fifth with 8%.

But even though Texas has two of the forecast's top-ranked MSAs, markets in the Lone Star state are predicted to experience a continuous slowdown. The major markets of Dallas-Fort Worth-Arlington and Houston-Sugar Land-Baytown are forecast to see residential real estate appreciate between just 2% and 3%, according to Veros.

Here are the top 10 markets projected to appreciate the most through June 1, 2020: 

1. Odessa, TX…………………………………………………………………….. +9.7%

2. Coeur D'Alene, ID…………………………………………………………… +9.5%

3. Idaho Falls, ID………………………………………………………………… +9.4%

4. Boise City-Nampa, ID ……………………………………………………. +9.1%

5. Midland, TX……………………………………………………………………. +8.0%

6. Bellingham, WA …………………………………………………………….. +7.8%

7. Spokane, WA…………………………………………………………………. +7.4%

8. Kennewick-Pasco-Richland, WA …………………………………… +7.2%

9. Pocatello, ID…………………………………………………………………… +7.2%

10. Yakima, WA …………………………………………………………………… +7.2%