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Home prices will increase by 14 percent this year through November, online real estate brokerage Zillow predicted.
Prices in Charlotte and Raleigh, N.C., San Antonio, Tex., and Jacksonville and Tampa, Fla., will rise the most; Tampa leads the surge with prices forecast to grow by 25 percent, Zillow said.
Home prices will climb in southern and less-urbanized areas as Baby Boomers seek retirement havens such as Tampa and Jacksonville, more Millennials are ready to buy their first homes, and remote workers seek warmer climates and cheaper suburban digs.
Atlanta, Austin, Nashville, Orlando, and Phoenix make up the rest of the 10 markets Zillow sees as appreciating the most. Housing markets will cool in Chicago, Milwaukee, New York City, San Francisco, and San Jose, the brokerage forecast, although home prices in those areas still will bump up 10 percent or more this year.
TREND FORECAST: As interest rates rise, housing sales and home prices will begin to decline. However, unlike the Panic of ’08 housing bust that was artificially inflated with subprime mortgages and wild speculation, minus a major equity market-crash, we do not forecast a sharp price sell-off.