TAMPA, Fla. – March 21, 2014 – Over the next five years, the median price of single-family homes will approach the peak reached before the housing market tanked in 2006, predicts the Demand Institute, a nonprofit think tank run by The Conference Board and Nielsen.
However, the Institute predicts that some local markets will rebound faster than others, creating an unbalanced recovery.
Among the 50 big metro areas projected to see housing appreciation between 2012 and 2018, the top five are predicted to have average gains of 32 percent – but the bottom five will average gains of just 11 percent.
Tampa, Jacksonville, Memphis, Milwaukee and St. Louis are expected to record the largest increase in the median price of an existing single-family home. At the state level, New Mexico, Mississippi, Maine, Illinois and New Hampshire are predicted to have the highest value gains.
The national median price is expected to grow at an annual rate of 2.1 percent from 2015 to 2018 driven primarily by new-household formation, according to the study.
Source: Reuters (02/26/14) Chadbourn, Margaret