(CHICAGO) Certain sections of the nation are in danger of a housing market decline, according to research produced by Attom Data Solutions. The most susceptible markets in the country are mostly focused in the Chicago and New York City regions because of pandemic challenges.
Attom ranked the data in its fourth-quarter 2021 Coronavirus Special Report based on affordability, the number of foreclosures, and the number of underwater mortgages.
Attom compiled a list of the top 50 counties in the United States with the most vulnerable housing markets where the epidemic is still wreaking havoc on the economy. Eight of the 50 counties were in Illinois, and they were all grouped around the Chicago region. Cook, De Kalb, Du Page, Kane, Kendall, Lake, McHenry, and Will counties make up the Chicagoland region.
There is more costly housing, greater foreclosure rates, and a higher number of homeowners with underwater mortgages in these susceptible locations. When a homeowner's mortgage debt exceeds the property's assessed worth, it's known as an underwater mortgage.
Parts of California and the East Coast, including Delaware and Philadelphia, are also at danger throughout the country.
According to Todd Teta, chief product officer of Attom, despite growing housing values, the United States still has regions of danger due to the epidemic.
"The U.S. housing market keeps powering on despite the Coronavirus pandemic that's still raging across the country. Indeed, home prices keep rising in part because of the crisis," he said. "Nevertheless, the virus remains a potent threat to the broader economy and the housing market, with some of the same counties we've seen in the past continuing to look vulnerable to potential downturns. No immediate warning signs hang over any one part of the country, but pockets are more vulnerable to the market taking a turn for the worse."
According to Attom, property prices in the United States have risen over 10% in the last year as a result of a massive influx of buyers and record low mortgage rates. However, increasing inflation and increased costs are making houses less affordable, signaling a market slump.
And, according to Redfin's real estate forecast for 2022, home prices will continue to grow in the next year, although more slowly, as mortgage rates rise.