Additionally, places where people tend to have high debt compared with their income and home equity are vulnerable because their residents are more likely to foreclose or sell at a loss.”Įven in the most vulnerable parts of the country, most homeowners are likely to remain on solid footing, Bokhari said. Home prices soared at an unsustainable rate in many pandemic homebuying hotspots. “But a recession–or even a continued economic downturn that doesn’t reach recession levels–would impact some local housing markets more than others, and there are a few factors that put certain areas at risk,” Bokhari continued. does enter a recession, we’re unlikely to see a housing-market crash like in the Great Recession because the factors affecting the economy are different: Most homeowners have a fair amount of home equity and not much debt and unemployment is low.” Higher interest rates led to surging mortgage rates, which have already cooled down the housing market,” said Redfin Senior Economist Sheharyar Bokhari. “Recession fears are escalating, mostly because the Fed has signaled it will continue to raise interest rates to tame inflation and cool consumer demand.
See Redfin’s report for the full methodology. Each metro is assigned an overall risk score, relative to the other metros in the analysis: 100 represents the highest likelihood of a housing market downturn, including year-over-year home-price declines, while 0 represents the lowest likelihood. metros where sufficient data was available uses several housing-related indicators for each metro, including home-price volatility, average debt-to-income ratio and home-price growth. Redfin’s analysis of housing markets in the 98 U.S. With the market already slowing from its pandemic peak, Redfin analyzed which metros are most susceptible to home-price declines if the country officially enters a recession–and which are most resilient to an economic downturn. housing market slowed considerably in the spring, with 5.5%-plus mortgage rates sending many buyers to the sidelines and cooling competition. This is according to a new report from Redfin ( ), the technology-powered real estate brokerage, which also found that relatively affordable northern metros are most resilient in the event of a recession. (NASDAQ: RDFN) - Popular migration destinations where home prices soared during the pandemic are most likely to see the effects of a housing downturn amplified and home prices decline year over year if the economy goes into a recession. Still-affordable Rust Belt metros like Cleveland and Buffalo are most resilient.
Riverside, Boise, Phoenix and Tampa are among the markets where homeowners stand to lose some of the value they gained over the past two years.
0 kommentar(er)
