Areas at risk of COVID lockdown
The housing market, for a variety of reasons, including government efforts to mitigate losses, has largely escaped the economic effects of the coronavirus pandemic, but some parts of the country continue to face more risk than others, and these threats to home ownership are not a thing of the past.
ATTOM real estate data analysts released a second quarter 2021 coronavirus report highlighting county-level housing markets that are more vulnerable to the impact of the ongoing pandemic.
The markets on the list were considered to be of greater or lesser risk depending on the percentage of homes likely to be foreclosed on, the portion with underwater mortgages, and the percentage of average local wages required to pay the major ones. homeownership expenses.
“The coronavirus pandemic is abating and the US economy is gradually coming back to life, suggesting that the domestic real estate market will indeed escape any major damage from the crisis. No major signs are showing anything different at this point. Nonetheless, the pandemic is still here and remains a powerful threat to home sales and values, as well as to the economy in general, ”said Todd Teta, product manager at ATTOM. “From a generally optimistic outlook, we continue to see areas that appear to be at higher risk for a fall, particularly in specific areas of the East Coast and Midwest. As we have done throughout the pandemic, we will keep a close eye on these areas in case the situation worsens and the pandemic starts again “.
Similar to the first quarter ATTOM study, the most recent data showed states along the east coast from Connecticut to Florida as well as Illinois, being more vulnerable to the effects of the coronavirus pandemic. The latest figures also reveal clusters of risk areas in New Jersey, Delaware, the Chicago zone and central Florida.
“The 50 most at-risk counties in the United States were spread over a larger area than in the first quarter of 2021,” ATTOM reported, “because most states had no more than two counties in the group of head during the most recent period. “
The West has remained much less exposed, the researchers added. The only three western counties in the top 50 in the second quarter of this year were in the north California and from the south Arizona.
The study’s results, which can be viewed in full on ATTOM.com, according to the authors, “follow a year when the nation’s housing market continued to boom for a decade, even amid the pandemic, with median single-family home prices rising more than 10% across much of the country. “
They added: “While small indicators of a possible slowdown have emerged in 2021 in the form of declining housing affordability and a slump in investor activity, the fuel for further increases. The price tag has come from the decline in the pandemic, job growth and improvements in the economy as a whole.
But the pandemic remains a threat to the economy as new viral variants emerge and additional clusters of new cases arise in various parts of the country. “