In last week’s article, we discussed whether or not you should wait until the prices drop to purchase a home. In this week’s article, we are discussing the top 10 most stable housing markets in the United States. We will be referencing this article from CNBC.
There are three things in real estate you must always keep in mind.
Location.
Location.
Location.
Reflecting the Fed’s efforts to rein in inflation, mortgage rates have nearly doubled since this time last year, but are the week-to-week declines cause for concern?
Still stuck at historic highs, the prices of homes are even starting to ignite bidding wars across the country, even as the supply of available homes begins to grow and markets start to cool off.
So, where is everything headed?
Recently, Realtor.com released (and revised) its 2022 forecast, predicting a 6.7% drop in home sales this year.
Preciously the forecast called for a 6.6% increase in sales, but even if this new forecast holds true, this will still be the second largest sales year since 2007, trailing only last year’s sales.
In a market like this, some states fare better than others.
Because companies consider the local housing market in their location decisions, CNBC’s America’s Top States for Business study gauges the health of each state’s housing market as part of the broader Economy category, which is worth 13% of a state’s overall score under this year’s methodology.
The housing metric considers year-over-year price appreciation, new construction per year, as well as foreclosures, and insolvency in the first quarter.
If you’re looking for a place to take cover from the housing storm, we’ve identified these 10 states as the most stable markets in real estate.
10. South Dakota
A solid economy in South Dakota has prices rising steadily. Foreclosure activity is very low, but a rising level of underwater mortgages could foreshadow what’s to come.
Appreciation: 20.1%
Starts per 1,000 population: 8.8
Foreclosure rate: 1 in 17,724 housing units
Underwater Mortgages: 4.8%
9. South Carolina
Inventory is still historically tight with bidding wars still common in many South Carolina markets while prices are still steadily increasing. But new construction is surging and stress on existing loans is under control.
Appreciation: 21.4%
Starts per 1,000 population: 9.5
Foreclosure rate: 1 in 1,081 housing units
Underwater mortgages: 3.4%
8. Arizona
Prices are surging in Arizona more than any other state. But new construction is booming too, helping to ease Arizona’s inventory crunch. Rising foreclosures are a potential cause for concern, but home equity is solid.
Appreciation: 27.4%
Starts per 1,000 population: 9
Foreclosure rate: 1 in 1,861 housing units
Underwater mortgages: 1.4%
7. Vermont
The Green Mountain State continues to benefit from new residents seeking refuge from the big cities. Home prices are rising at a healthy clip, and mortgages are beyond healthy. New construction, however, is not keeping pace, and the overall economy in Vermont is sluggish.
Appreciation: 20%
Starts per 1,000 population: 3.2
Foreclosure rate: 1 in 13,930 housing units
Underwater mortgages: 1.1%
6. Tennessee
Tennessee has the second strongest overall economy in the nation, and its strong and stable housing market is a big reason why. Home prices are surging along with economic output. New construction is healthy, though foreclosures and underwater mortgages are starting to creep up.
Appreciation: 24.1%
Starts per 1,000 population: 8.2
Foreclosure rate: 1 in 2,797 housing units
Underwater mortgages: 2.9%
5. Idaho
Idaho’s housing market has been having success for some time now. Buying a home in the Gem State is not for the faint of heart. But new construction is slowly starting to relieve the inventory squeeze. Rising foreclosure is a potential warning sign if the economy tips into a recession.
Appreciation: 27%
Starts per 1,000 population: 10.5
Foreclosure rate: 1 in 6,015 housing units
Underwater mortgages: 1.6%
4. Texas
Texas’ population gains are helping fuel a housing boom, but one that is not getting out of hand. New homes for those new residents are springing up fast, and home equity is good.
Appreciation: 19.3%
Starts per 1,000 population: 8.9
Foreclosure rate: 1 in 2,326 housing units
Underwater mortgages: 2.5%
3. Florida
It’s almost all sunshine and light in Florida’s housing market. Prices are jumping, but so are construction crews. Rising foreclosure rates in a state known for its boom-and-bust cycles could be a cloud on the horizon.
Appreciation: 25.7%
Starts per 1,000 population: 9.6
Foreclosure rate: 1 in 1,211 housing units
Underwater mortgages: 1.4%
2. Washington
Washington’s impressive run of economic growth has kept its housing market among the hottest in the nation for several years now, defying predictions of a crash. A shortage of new construction is probably keeping prices high, and raising continued concerns about how stable the market is.
Appreciation: 20.1%
Starts per 1,000 population: 7.3
Foreclosure rate: 1 in 4,965 housing units
Underwater mortgages: 1.2%
1. Utah
No matter how you look at it, the housing market in the Beehive State is buzzing. Prices are rising at the second highest rate in the country, but with the nation’s fastest pace of new construction, plenty of new inventory is on the way in Utah. Foreclosures are manageable and home equity is strong in the top housing market in the nation.
Appreciation: 27.1%
Starts per 1,000 population: 12.2
Foreclosure rate: 1 in 2,063 housing units
Underwater mortgages: 1.4%
