One question property owners and potential buyers are constantly asking as 2017 winds down is: What can I expect with my property values for the next year? While there may be no crystal ball for property values, there are certainly trends that can be helpful in making decisions in the New Year.
According to data analysis on property value trends from the National Association of Realtors (NAR) using federal American Community Survey (ACS) numbers, good things are in store for property owners and hypothetical buyers.
“Using data from the American Community Survey (ACS), we can analyze the gains and losses of property values over time,” Michael Hyman, research data specialist for NAR said. “Looking at the 2005 – 2016 period, the figures point to trends, which vary by region and state.”
Using data from the ACS from years 2005 to 2016, NAR found only a few states for this 11-year period are showing property value stagnation or devaluation. More specifically, property value growth was the strongest in the Southern region. The Northeast had the weakest growth in property values.
NAR’s regional analysis of the of Northeast, Midwest, South, and West goes further in the weeds to describe what types of value trends are occurring. The South’s lead on property value growth is lead by Louisiana, with a ratio of 57 percent price growth with four percent average annual price growth. This finding falls in lockstep with the idea that many property flippers that are now turning their attention to Louisiana (specifically Baton Rouge).
In contrast to the South, the Northeast (which normally has the slowest price growth) had one of the biggest losers in terms of price trends, with Rhode Island’s value dropping 11 percent, and negative one percent change annually. If your eye is on the Northeast at any cost, Pennsylvania is your best bet, with a 40 percent price growth and 3 percent annual growth.
But the big winner in the property growth trends? The Midwest’s North Dakota, with a whopping 106 percent increase in price growth and 6 percent growth annually. The big loser for this time frame is Nevada, with negative 16 percent growth and a decrease of one percent annually.
While this data can’t guarantee that any current or future property venture will turn profitable, it can highlight some areas of interest. It’s no crystal ball, but it can give you a great perspective on future property value forecasting.
Alexandra Bohannon has a Master of Public Administration degree from University of Oklahoma with a concentration in public policy. She is currently based in Oklahoma City, working as a freelance filmmaker, writer, and podcaster. Alexandra loves playing Dungeons and Dragons and is a diehard Trekkie.
