After several years of continuous projected year-over-year increases in nationwide residential real estate appreciation, our CoreLogic team predicts that for 2019, home prices will appreciate by 4.8 percent nationwide, with the highest appreciation in the states of New York, California, Nevada, Maine, Hawaii and Oregon. This forecast represents a minor change over the CoreLogic Home Price index, which ended 2018 with a 12-month annualized appreciation at 4.7 percent.
Five states with strong forecasts fit our economists’ view that cities with a wide array of amenities, an active lifestyle, and good career opportunities will likely continue to perform well over the next few years. As affordability becomes more of a concern, homebuyer activity is strongest in areas that represent great places to live both now and in the foreseeable future.
As we look at our predictions for 2019 across all major CBSAs, we expect that 10 major CBSAs will perform particularly well in 2019. Each of these CBSAs is forecasted to appreciate over 10 percent year-over-year at the end of this year, and all of these metros are in California:
Several other smaller populated areas in California also made it on our list. Smaller populated Metropolitan Statistical Areas in New York, Nevada, Maine, Alabama, Michigan, Missouri, Oregon, Utah, Arizona and Florida also have forecasts above 10 percent. The commonalities in many of these CBSAs are a high quality of life, coastal locations and strong job opportunities. CoreLogic is closely monitoring whether affordability concerns and supply constraints will impact these markets. For now, we believe they represent very promising markets through at least December 2019.
CoreLogic HPI Forecast is the market leader in home price forecasts. We benchmark our performance against actuals and consistently find that our forecast is within 1 percent of actual home prices over a 12-month period nationwide. With shifting markets, it’s more important than ever to be utilizing the leading Forecast product in the industry. Learn more in the CoreLogic Home Price Index Forecast.
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