A national forecast out this week predicts dozens of U.S. cities will see strong price gains this year, but most are in states such as Kansas, West Virginia and South Dakota – well off the traditional radar of Canadian investors.
The Florida-based website HousingPredictor.com released its annual top 25 lists of the best and worst markets in the U.S. for price growth. The top two cities on the list were in Kansas.
Kansas City topped the list with a forecast of 5.8% price growth, followed by Topeka, up 4.7%. Rounding out the top five were Charleston, West Virginia; Oklahoma City, Oklahoma; and Minot, North Dakota.
“Strong demand for corn and soy beans in farming leads Kansas City to the top of the list,” said the report. West Virginia landed three of the top 25 due to its affordability drawing in new residents, said the report.
The worst performing city was Las Vegas, predicted to drop 8.4% in 2012 in average price, followed by Wilmington in Deleware and Hilo, Hawaii, both down 8.2%.
The Arizona cities of Yuma and Phoenix will drop in price by 7.3% and 7.1% respectively this year, said the report. Fort Myers, Florida and Atlanta, Georgia also made the top 25, down 6.8% and 6.7% respectively.
Of the top 25 markets by size, only Dallas (+1.4%), Houston (+1.8%) and Miami (+6.4%) were projected to see housing price gains in 2012.
HousingPredictor.com has provided market forecasts since 2006, based on factors such as income levels, employment rates and trends, real estate sales history and current market velocity.
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