Home prices over the next 12 months will remain relatively unchanged, with the strongest markets seeing a 4% uptick in appreciation and the weakest markets dropping by 6%, Veros Real Estate Solutions said Friday.
The property valuation and real estate analytics firm said its home price index shows 2012 declines of 1.3% overall, which is lower than a prior forecast of 1.7% depreciation.
The real estate markets with the strongest home price trends are found in North Dakota, Texas, South Dakota, Nebraska, Louisiana and Iowa.
Veros predicts the highest home-price appreciation in 2012 to occur in Fargo and Bismarck, N.D., with growth rates of 3.5% and 3.3%, respectively. Home prices in the Washington, D.C., area are expected to rise 2.9% due to an uptick in new government jobs.
One of the worst cities in terms of home prices is Bakersfield, Calif., which is expected to see declines of 6.8%. The city’s home values are falling with unemployment at 15.1% and the area experiencing a high foreclosure and mortgage delinquency rate. The Reno-Sparks area in Nevada is expected to experience a decline of 5.7% in 2012.
Veros says high unemployment continues to plague areas with depreciating home prices. The Las Vegas/Paradise, Nev., area, and Sacramento-Arden-Arcade-Roseville,Calif., and Fresno, Calif., are also expected to see depreciation of at least 5% this year.
Write to Kerri Panchuk.
