COVID and current economic conditions are so tightly intertwined the relationship should be factored into almost all short-term planning. A current example is ATTOM Data Solutions‘ Q4 report on housing markets most vulnerable to COVID.
The good news is most of Tennessee’s markets are at the bottom of the most vulnerable list. Housing accounts for about 15% of those counties’ economies.
Sullivan and Washington counties have risk ranking in the middle of the 13 state markets included in the analysis.
Markets were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, and the percentage of average local wages required to pay for major homeownership expenses on median-priced single-family homes. The conclusions were drawn from an analysis of the most recent home affordability, equity, and foreclosure reports prepared by ATTOM. Rankings were based on a combination of those three categories in 575 counties around the United States with sufficient data to analyze in the third and fourth quarters of 2021. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the three ranks.
“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,” said Todd Teta, chief product officer with ATTOM. “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.”
Sullivan Co. had a ranking of 463, which put it at a slightly lower risk than Washington’s 457 ranking.
The most vulnerable market was Clarksville (255) and the least vulnerable was Davidson (566)
Here’s how the data used in the analysis looked for the two local counties:
Income needed to buy a median-priced home (16.1%). It was the most affordable housing market in the state grouping based on that data point.
Properties with Q4 foreclosure filings (28) eight lowest in the state.
Percentage of properties with underwater mortgages (6.7%) 10th lowest in the state.
Income needed to buy a median-priced home (21.5%) It was the third most affordable market in the analysis.
Properties with Q4 foreclosure filings (14) fifth lowest in the state.
Percentage of properties with underwater mortgages (7.3%) 11th lowest in the state.
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Categories: REAL ESTATE