Originally published on October 5, 2023, by Heather Zeller for VeroFORECAST
SANTA ANA, Calif., Oct. 5, 2023 —Veros Real Estate Solutions (Veros®), an industry leader in enterprise risk management and collateral valuation services, released its 2023 Q3 VeroFORECASTSM that anticipates that home prices are expected to increase on average 2.2% over the next 12 months, compared to last quarter’s forecast of 1.7% increase, indicative of a steady market.
VeroFORECAST evaluates home prices in over three hundred of the nation’s largest housing markets. Veros is committed to the data science of predicting home value based on rigorous analysis of the fundamentals and interrelationships of numerous economic, housing, and geographic variables pertaining to home values.
In the current discussions surrounding the housing market, one issue reigns supreme: the scarcity of available homes for sale. “Forecasts suggest that this predicament is here to stay for the foreseeable future, stretching into months, and quite possibly, a couple of years,” said Reena Agrawal, Research Economist at Veros Real Estate Solutions. “The chief culprit behind this housing conundrum is the expectation of prolonged high mortgage rates. This is because the Federal Reserve is likely to hold interest rates higher for longer to combat inflation and will probably increase rates further. Adding to this supply squeeze is the high cost of construction, which places a substantial damper on the prospect of new housing stock entering the market.”