Cities where Home Prices are Rising again

In the past couple of years, home prices plunged in all the major cities of the United States along with many other cities around the world. According to The S&P/Case-Shiller report, both 20-city composite and the 10-city index declined 3.6% year-over-year during 2010/2011. However, in May 2011, these indexes gained life after eight months of negativity. Although this was the case last year, the burning issue is, whether the same trend will continue in the future. A recent article published in the MSN real state sheds light into this issue and predicts what cities will have a rising home price in the coming years.

Before discussing these predictions, it is better to look back at what cities gained in the last year according to the S&P/Case-Shiller report. Accordingly, Boston, Minneapolis and Washington were the largest gainers of which Washington did have a continued gain over 12 months prior to the release of the report. Apart from the above cities, there were 13 more cities, which showed a marginal gain in its home prices.

When looking at the predicted home prices for 2012, the article recognizes Illinois as one of the gainers and predicts a home to cost around $248,136 in the city area. Chicago being a financial hub and the third largest city in the US, it has a positive outlook about its home market. At the same time, Ohio has come to the forefront as one of the states to have the largest gain in the future in relation to the home market. Thus, Cleveland will see the fourth largest gain according to the report in the future. The predicted home price for Ohio is at around $139,573.

Detroit and Farmington Hills are another two cities that will have a gain in their home prices in 2012 with its home prices to hit $157,469 in Michigan. Atlanta Georgia also has a positive outlook on its home market with prices for Atlanta predicted to be at around $182,199. Being the home for many of the nation’s largest companies would mean that a rise in the job market would have a significant impact on the home prices in the city.

North Carolina also has a positive outlook on its home prices with an average price of $191,788 per house. This is an increase from the 2008 4th quarter home price of $185,000. Thus, cities in the state of North Carolina such as Charlotte, Gastonia and Concord should see some improvement in its home prices.

However, places such as California, Texas, New York and Florida have been projected as having a negative outlook on its home markets although these predictions may change with many other factors that may change over time with the uplifting of the US and global economy. If the economy do not pick up as it is expected, these predictions may not hold, and continued declines may be seen even in those cities predicted to have a positive gain.