Local Market Monitor

ECONOMIC OUTLOOK

Over twenty years of proven expertise and trend analysis in evaluating residential property values.

Local Market Monitor Press Release

Local Market Monitor Announces Release of Fourth Quarter Home Price Forecast for Smallest US Markets

Real estate forecasting solution predicts home values for Top and Bottom housing markets and releases National Economic Outlook

CARY, NC – December 10, 2009 – Local Market Monitor, the premier real estate forecasting solution, today released its fourth quarter Home Price Forecast, which predicts local market behavior for well over 300 US local markets over the next 12 months. The forecast identifies markets where home prices will continue to drop as well as stable markets with opportunities for growth.

According to the forecast, among the largest US markets—identified as those with populations less than 600,000—the markets with the best expected performance in home price are:

Abilene, TX
Brownsville-Harlington, TX
Florence-Muscle Shoals, AL
Kennewick-Pasco-Richland, WA
Lake Charles, LA
Muncie, IN
Odessa, TX
St. Joseph, MO-KS
Texarkana, TX-Texarkana, AR
Waco, TX

These top smaller markets had price increases of 2-4 percent, which is not level, but rather a nominal increase. Small markets like these will have stronger home prices than larger markets because they had less excessive home building.

The smallest markets with the worst expected performance in home price are:

Bend, OR
Boise City-Nampa, ID
Cape Coral-Fort Myers, FL
Deltona-Daytona Beach-Ormond Beach, FL
Modesto, CA
Naples-Marco Island, FL
Port St. Lucie, FL
Prescott, AZ
Reno-Sparks, NV
St. George, UT
Vallejo-Fairfield, CA

Local Market Monitor also recently released its latest National Economic Outlook, which comments on the overall predicted behavior of the US economy and national housing industry. According to the summary:

Delinquency rates on credit cards have now been flat for three quarters at 6.5 percent. With commercial real estate loans souring rapidly, banks will expand credit card lending as their best bet for profits.
The employment situation has stabilized at 132 million jobs, down 7 million since 2007. This is a turning point that will encourage renewed, albeit cautious, spending.
A recovery in the housing markets and a pick-up in home prices is still a long way off. Overall, national home prices in the third quarter of 2009 were down 5 percent from a year ago. Expect to see a further 5 percent decrease in home prices during the next 12 months, with double-digit decreases in some markets.

To read the full report, click here.

About Local Market Monitor

Local Market Monitor, the premier real estate forecasting solution, offers investors in homes and home mortgages the local market risk intelligence they need to make better decisions. Using a proprietary formula called the Equilibrium Home Price, Local Market Monitor determines if markets are currently over or under valued, equipping users with a long-term risk and investment perspective. Covering over 300 local markets, Local Market Monitor also presents key investors with a 12-month home price forecast. The solution includes sorting capabilities allowing subscribers to view and compare real estate markets along various metrics. Local Market Monitor is based in Cary, NC and has provided expertise in evaluating residential property values since 1990. To learn more, visit www.localmarketmonitor.com.

« Return to Press Releases