Hat tip to Mr. T for sending this in from marketwatch.com:
CHICAGO (MarketWatch) — Home prices in a majority of the markets covered in Zillow’s Home Value Forecast are set to bottom this year — if they haven’t already, according to a Zillow report released on Wednesday.
“From an economic perspective, the latter part of the first quarter is full of positive news as the spring selling season gets underway,” said Stan Humphries, Zillow’s chief economist, in a news release. “While it is unlikely that national home values continue to rise at this rate through the rest of the spring and summer, it is undeniable that we are seeing sparks of life in the housing market.”
Nineteen out of 30 markets in Zillow’s monthly report are expected to hit a bottom, in terms of home prices, at some point in 2012, according to the real-estate website.
The Phoenix, Miami-Ft. Lauderdale and Tampa areas are expected to see significant home-value increases over the next year, with prices in Phoenix expected to rise 6.5%, prices in Miami-Ft. Lauderdale expected to rise by 5.6% and prices in Tampa expected to rise 2.5%, the release said.
Markets where prices are expected to keep dropping include Atlanta, where prices are expected to fall 4.1% over the year and Chicago, where values are forecast to decline 3.8%.
Overall, U.S. home values rose 0.5% in March, compared with February, according to the report. That’s the largest monthly increase since May 2006, according to Zillow.
The report was released a day after the latest Case-Shiller report, which found that average home prices were at their lowest level in February since late 2002. Read more: U.S. home prices fall to nearly decade low.
Below are the 19 metropolitan areas where Zillow expects prices will hit a bottom in 2012:
- New York
- Los Angeles
- Dallas-Ft. Worth, Texas
- Philadelphia
- Washington, DC
- Miami-Fort Lauderdale, Fla.
- Boston
- Riverside, Calif.
- Phoenix
- San Diego
- Tampa, Fla.
- St. Louis
- Baltimore
- Denver
- Pittsburgh
- Orlando, Fla.
- Las Vegas
- San Jose
- Virginia Beach, Va.
“Zillow expects ”
Bwa ha ha.
Is that like “Hope & Change you can Believe in”?
What’s your old pal Yun saying this week?
Is he on the bus or not?
Funny, a different report this week noted that Washington, DC house prices are one of the few areas that have more or less held steady during the meltdown.
Don’t laugh,
I remember seeing something where Temecula was the only city seeing home price increase last quarter.
did not happen in SD in that report at least.
DC holding up is no surprise, as Big Gov is one of the last great bubbles.
p.s.: No bottom this year. Perhaps a temporary plateau…
Honest
When it comes to Riverside and Vegas prices are very low relative to rents. I would not recommend buying one place as a rental, too much risk (if that property gets damaged or you need to evict all eggs are in one basket). However, if you could buy 10 properties in Riverside or Vegas (2,000 sq ft homes are $150K) and actively manage them (even if only 8 are rented at a time)you can make a good living.
By the way if you buy in Vegas be prepared to get paid in singles.
prices? maybe. afterall, the substandard stuff has been selling. Going forward, it will be pricier houses selling, so if you told me that “prices” or even $/sf was bottoming, I might believe you.
But repeat purchase indices? I doubt it.
When I read the prediction for a 6.5% increase over the next year in Phoenix it made me chuckle a little. With all that’s going on in AZ I’m surprised their population remains in the triple digits.