Veros Real Estate Solutions, a leading private forecaster for the mortgage industry, projects home prices will appreciate in Colorado and Phoenix over the next 12 months. Helping boost this projection was Freddie Mac reporting new record lows for fixed U.S. mortgage rates. The average on the 30-year loan dropped to 3.62 percent- the lowest since long-term mortgages began in the 1950s. This will provide prospective buyers with more incentive to brave a modestly recovering housing market.
Veros predictions bolster a rule of thumb that every housing market is different and is contingent upon its own specific economic factors. A look at Veros' forecasts of the top and bottom five major U.S. metropolitan housing markets in the coming year:
Strongest:
1. Phoenix-Mesa-Scottsdale, Ariz., 6.4%
2. Boise City-Nampa, Idaho, 3.8%
3. Boulder, Colo., 3.6%
4. Bismark, N.D., 3.5%
5. Denver-Aurora, Colo., 3.3%
Weakest:
1. Reno-Sparks, 5.0%
2. Fresno, 4.9%
3. Bakersfield, 4.7%
4. Modesto, 4.6%
5. Stockton, 4.3%
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