Housing inventories remain at historic lows earlier this year, but prices are well above pre-COVID-19 pandemic standards. And in some markets, rising interest rates are driving home-buyer affordability off a cliff.
Experts warn that the bubble must burst because house price gains in the post-Great Recession recovery were unsustainably pushed up by pandemic-era low interest rates. at least a little.
Initial projections projected that the expected housing market “correction” would collectively reduce average U.S. home prices by as much as 10% by the end of 2023. Real estate firms continue to issue pessimistic forecasts, but the country has never come to consensus on how dramatic the correction will be.
Existing home sales have plunged since the beginning of 2022, but the consistently tight supply of existing and new homes has left prices more or less holding than they were in 2021, or simply slowing growth. I’m here.
Such pressure has forced institutions such as Goldman Sachs to lower prediction how much the price could fall. The bank will issue a memo in January 2023, saying it expects a 25% decline in four metropolitan areas, including Phoenix, Austin, San Jose and San Diego. This would make this housing adjustment pain comparable to the collapse of some overheated urban housing markets in 2008.
Nashville MLS Use Q3 2022 ATTOM Ranking ATTOM’s ranking criteria include the percentage of homes at risk of foreclosure, the percentage of local wages needed to cover the average homeownership cost, the unemployment rate, and outstanding mortgage balances relative to asset values. Estimation — Situation known as “underwater”. In total, there were 581 US counties with data eligible for ranking.
Many of the lowest risk counties were in the South.Recent research from Florida Atlantic University Home markets in states such as Utah, Idaho, North Carolina, Florida and Arizona are reporting prices rising much faster than historical trends, suggesting risks of a significant downward revision in prices. doing.
Tennessee has the lowest vulnerability in this ranking, with three counties in the top 10, more than any other state. And four of the 52 low-risk counties were within the Nashville metro area. The unemployment rate in each county making the least vulnerable list is also below the August 2022 national average of 3.7%.
Read on to see if your county is in one where homes are more likely to retain their value than elsewhere in the country.
