The housing market and the economy as a whole have taken a wild turn this year, with house prices clinging to all-time highs and mortgage rates well above 2021 lows.
Combined with inflation, the roller coaster ride has given home buyers pause, even as it signals a gradual recovery in housing stock.
Realtor.com now forecasts that home sales will decline 6.7% during 2022, compared to previous forecasts of a 6.6% sales increase. percent.
Where is the best place to wait for all the market ups and downs? According to a CNBC analysis that assessed each state’s economic health, annual home price appreciation, new construction per year, and foreclosures and insolvency as of the first quarter of 2022, Utah currently has the the most stable housing market in the country.
The financial outlet pulled data from the recently released CNBC America’s Top States for Business study, the Federal Housing Finance Agency (FHFA), the U.S. Census Bureau and Atom Data Solutions.
See full details of the most stable housing markets below.
1. Utah
Old Outcast, Utah | John Fowler / Unsplash
2022 Economy ranking: 6
Home price appreciation: 27.1 percent
Housing starts per 1,000 people: 12.2
Foreclosure rate: 1 in 2,063 housing units
Underwater mortgages: 1.4 percent
Utah, without a doubt, has a hot housing market right now. To see also : Central Oregon’s hot real estate market is showing signs of cooling in the face of a nationwide slowdown.
The state has the second highest rate of home price increases in the nation, but also the fastest rate of new construction. Moreover, its foreclosure rate is low and the economy is in a strong position.
2. Washington
Seattle | Photo by Luca Micheli on Unsplash On the same subject : What is home appreciation in real estate?.
2022 Economy ranking: 3
Home price appreciation: 20.1 percent
Housing starts per 1,000 people: 7.3
Foreclosure rate: 1 in 4,965 housing units
Underwater mortgages: 1.2 percent
Although Seattle has often been singled out over the years as a city with a severe housing crisis and affordability issues, the state’s steady economic growth has helped it land high in this ranking. This may interest you : Political experts assess the impact of the economy on the mid-term elections in the context of “bad economic policy”. Also, foreclosure rates and underwater mortgages are quite low.
3. Florida
Saint Augustine | Lance Asper / Unsplash
2022 Economy ranking: 4
Home price appreciation: 25.7 percent
Housing starts per 1,000 people: 9.6
Foreclosure rate: 1 in 1,211 housing units
Underwater mortgages: 1.4 percent
There have been conflicting reports during the pandemic as to whether or not everyone is moving to Florida, with its attractive year-round climate and advantageous taxes.
Still, rising prices and construction rates reflect strong demand, at least for now.
4. Texas
Austin, TX | Carlos Alfonso / Unsplash
2022 Economy ranking: 8
Home price appreciation: 19.3 percent
Housing starts per 1,000 people: 8.9
Foreclosure rate: 1 in 2,326 housing units
Underwater mortgages: 2.5 percent
Texas is another state that has received a lot of press in recent years for its growing population, as buyers in more expensive markets like California grew tired of competition during the peak of the housing market. fueled by the pandemic.
In response, home construction is poised to meet demand and many qualified buyers are ready to embrace these new homes.
5. Idaho
Boise, Idaho | Click Sluice / Unsplash
2022 Economy ranking: 5
Home price appreciation: 27 percent
Housing starts per 1,000 people: 10.5
Foreclosure rate: 1 in 6,015 housing units
Underwater mortgages: 1.6 percent
Boise has consistently ranked as one of the hottest markets in the nation, contributing to strong overall demand for housing across the state.
The new construction is helping to bolster the state’s inventory, CNBC’s report notes, but foreclosure rates are also up (though still quite low compared to other states), which may be a warning signal if the economy experiences a sharp downturn.
6. Tennessee
Nashville, TN | Jean Brandon / Unsplash
2022 Economy ranking: 2
Home price appreciation: 24.1 percent
Housing starts per 1,000 people: 8.2
Foreclosure rate: 1 in 2,797 housing units
Underwater mortgages: 2.9 percent
According to CNBC analysis, Tennessee has the second strongest economy in the country behind North Carolina.
The stability of the housing market and the rise in prices have largely contributed to this factor. However, the report also warns that foreclosures and underwater mortgages are on the rise.
7. Vermont
Champlain Valley, Vermont | Kevin Davison / Unsplash
2022 Economy ranking: 33
Home price appreciation: 2o percent
Housing starts per 1,000 people: 3.2
Foreclosure rate: 1 in 13,930 housing units
Underwater mortgages: 1.1 percent
People seeking to flee big cities have boosted Vermont’s housing market, contributing to rising prices and new mortgages. Despite these healthy signs, both the state’s economy and new construction have lagged, causing Vermont’s overall rankings to plummet.
8. Arizona
Piestewa Peak, Arizona | Kyle Kempt / Unsplash
2022 Economy ranking: 22
Home price appreciation: 27.4 percent
Housing starts per 1,000 people: 9
Foreclosure rate: 1 in 1,861 housing units
Underwater mortgages: 1.4 percent
Arizona has emerged as another Sun Belt hot spot, with soaring home prices and low inventory.
However, the push for state building should provide much needed relief. Rising foreclosure rates are something to watch, the CNBC report notes, but home equity is generally in a strong position.
9. South Carolina
Charleston, South Carolina | Leonel Heisenberg / Unsplash
2022 Economy ranking: 13
Home price appreciation: 21.4 percent
Housing starts per 1,000 people: 9.5
Foreclosure rate: 1 in 1,081 housing units
Underwater mortgages: 3.4 percent
South Carolina is in the midst of a very hot market, with tight inventory and regular bidding wars, which helps prices continue to rise.
However, strong new construction starts should eventually help dampen this demand in the coming months.
10. South Dakota
Mount Rushmore, South Dakota | Ronda Darby / Unsplash
2022 Economy ranking: 12
Home price appreciation: 20.1 percent
Housing starts per 1,000 people: 8.8
Foreclosure rate: 1 in 17,724 housing units
Underwater mortgages: 4.8 percent
South Dakota’s economy is in good shape, with home price appreciation still strong and housing starts at a healthy pace.
The seizure rate is extremely low. However, with the rise in underwater mortgages, problems could arise in the housing market, CNBC noted.
