Housing Market: What States Have Been Most Stable Ahead of Potential Cooldown?
The housing market has been complicated to navigate since the pandemic. And now, with a four-decade high inflation and rising mortgage rates, some states will fare better in terms of stability once everything cools down a bit, according to a new CNBC study.
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To put this in context, a new Realtor report, 2022 Housing Market Forecast Midyear Update, shows that in the second half of 2022, mortgage rates will continue to climb, albeit at a more modest pace, which means that rates hit 5.5% by year-end. In addition, Realtor notes that while going forward, home price growth will cool, it has remained hotter for longer than originally anticipated leading to an upwardly revised projection of 6.6% home price growth for 2022. Finally, Realtor also expects home sales to decline 6.7%.
Against this backdrop, the new CNBC study examines 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, CNBC explains.
So which is the most stable state?
Utah takes the number one spot in the CNBC study. While prices are rising at the second highest rate in the country, the state also has the nation’s fastest pace of new construction. In addition, foreclosures are manageable and home equity is strong in the top housing market in the nation, CNBC notes.
Following Utah is Washington, which “has kept its housing market among the hottest in the nation for several years now, defying predictions of a crash,” according to CNBC, which adds that the shortage of new construction is largely driving high prices.
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Rounding up the top 10 states most stable for housing, include Florida, Texas, Idaho, Tennessee, Vermont, Arizona, South Carolina and South Dakota.
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This article originally appeared on GOBankingRates.com: Housing Market: What States Have Been Most Stable Ahead of Potential Cooldown?
