Forecast: O.C. home prices to rise 1.8%

Veros, a Santa Ana-based real estate tracker, said its economic model forecasts Orange County homes appreciating 1.8% in the year to end June 2011 — part of an overall firming of much of the California housing market.

In the report, Veros’ Eric Fox says: “More coastal California markets are showing signs of improvement … California’s Inland Empire area is showing signs of modest appreciation, joining the state’s strongest metro region, San Diego.”

Both the IE and San Diego cracked Veros’ Top 5 for projected gains in the year to end next June:

1. Shreveport/Bossier City, La.: +4.2%
2. San Diego: +3.4%
3. Inland Empire: +3.2%
4. Amarillo, Tex.: +3.2%
5. Houston: +3.1%

At the other end of the spectrum, Veros’ Bottom 5 has a heavy Florida flavor:

1. Chico: -8.9%
2. Deltona/Daytona Beach, Fla.: -8.3%
3. Reno: -7.8%
4. Vero Beach, Fla.: -7.8%
5. Palm Bay/Melbourne, Fla.: -7.7%

Overall, Fox wrote: ”Although there aren’t any overwhelmingly strong appreciating forecasts in the near term, the depreciating ones are milder than they were a year ago.”

Post based on an article posted in the OC Register by Jon Lansner.