Houston is expected to post the nation’s strongest home price appreciation over the next year, according to a new report by Veros Real Estate Solutions.

Houston’s relatively low unemployment — 8.7 percent in August — contributed to the city showing an increase in home prices in the third quarter and that trend should only continue, says Veros’ VeroFORECAST.

“Texas is looking strong, with four of the top ten markets in the appreciation forecast,” said Eric Fox, Veros’ vice president of statistical and economic modeling, in a statement.

The report predicts that good performances from Houston, Dallas and Amarillo will help the state of Texas lead the nation in terms of home price appreciation over the next 12 months. Dallas and Amarillo ranked second and third, respectively, behind Houston in the forecast of the nation’s projected five strongest markets. Beaumont/Port Arthur ranked No. 7.

Houston-Sugar Land-Baytown is expected to see a 3.8 percent increase in home prices over the next year, more than any other U.S. city. Dallas and Amarillo home prices are expected to rise 2.7 percent. Beaumont/Port Arthur’s projected price appreciation over the next year is 2.3 percent.

Meanwhile, Florida home markets continue to struggle as the state placed four metro areas in the rankings of the five projected weakest markets led by Port St. Lucie /Fort Pierce, which is projected to show a 7.2 percent price depreciation.

Source: Houston Business Journal