Florida Housing Market Most Susceptible of a Downturn In a Recession: Redfin Report
By Fox Business // July 30, 2022
California, Idaho also most susceptible to downturn in a recession
(FOX BUSINESS) –Housing markets that surged in popularity during the coronavirus pandemic and saw rapid rises in home prices are most susceptible to a housing downturn if a recession occurs, according to a new report by full service real estate brokerage Redfin.
The housing market has already “slowed considerably” this spring as rising mortgage rates forced a lot of potential buyers out of the market, according to Redfin. A weekly survey of mortgage rates by Freddie Mac shows the 30-year rate at 5.3%.
Now, with fears of a continued economic downturn, the brokerage analyzed metros that are most susceptible to home-price declines if the country enters into a recession and which ones would be most resilient.
According to its analysis of 98 U.S. metros, homeowners in certain California, Idaho, Arizona and Florida markets have the highest likelihood of a housing market downturn, including year-over-year home-price declines, if the U.S. economy falls into a recession.
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