Coronavirus and vulnerability in the US markets
Coronavirus has brought the entire world economy to its knees. But not only. As we have analyzed in the previous guides, one sector that has undoubtedly suffered from this situation is ours. But differently in the various areas of the globe. Today, we will focus on what the reaction of the American real estate market has been, which, according to the news, is suffering from this very critical phase.
But as we know, a generic speech cannot be made. But we need to go into detail and locate the situation.
The question we will try to answer is the following: which are the most vulnerable real estate markets? Which less? Let's find out together!
Among the counties most at risk, we undoubtedly identify the North-East, with first place New Jersey and Florida, followed by those in the West and in the Midwest.
In detail, there are as many as 50 markets in these areas considered extremely risky, if we analyze the economic impact deriving from the health emergency. In detail :
- Four markets in New York
- Three in Connecticut
- Ten in Florida
- One in California
But on what basis is this risk analysis carried out? The relationship that is taken into consideration is that relating to the detection of the following problems:
- Percentage of housing units with risk of foreclosure
- Percentage of houses with overdue payments
- Percentage of houses with a LVT (loan to value) equal to or greater than 100
The rankings thus drawn up are based on the perfect combination of the elements mentioned above. How were the counties divided? With a total of 483, the division was made based on the homogeneity of the results reported in the various categories.
From the lowest level to the highest level. But although this analysis may seem perfect on a methodological level, it cannot be applied in the long term. The results are clear.
It is the North-East that is most at risk.
The most exposed counties are the following: Bergen, Essex, Passaic, Middlesex, Union, Flagler, Lake, Clay, Hernando, Osceola, Rockland County; Orange County, in the metropolitan area of Poughkeepsie; Rensselaer County, in the Albany metropolitan area; and Ulster County.
In these counties, average prices range from $ 160,000 to $ 300,000. But it is not excluded that these prices may vary due to this problem. As we have anticipated, however, drawing up a list of the areas most at risk is not useful enough if not for the contingency.
So what should we expect from market dynamics? How will the situation evolve? At the moment it is impossible to give an assessment that can include the long term. What is expected, however, and that is feared, is that this situation concentrated only in one area, can then spread, involving others. While waiting to know more, we invite you as always to stay updated on our portal!
But as we know, a generic speech cannot be made. But we need to go into detail and locate the situation.
The question we will try to answer is the following: which are the most vulnerable real estate markets? Which less? Let's find out together!
Among the counties most at risk, we undoubtedly identify the North-East, with first place New Jersey and Florida, followed by those in the West and in the Midwest.
In detail, there are as many as 50 markets in these areas considered extremely risky, if we analyze the economic impact deriving from the health emergency. In detail :
- Four markets in New York
- Three in Connecticut
- Ten in Florida
- One in California
But on what basis is this risk analysis carried out? The relationship that is taken into consideration is that relating to the detection of the following problems:
- Percentage of housing units with risk of foreclosure
- Percentage of houses with overdue payments
- Percentage of houses with a LVT (loan to value) equal to or greater than 100
The rankings thus drawn up are based on the perfect combination of the elements mentioned above. How were the counties divided? With a total of 483, the division was made based on the homogeneity of the results reported in the various categories.
From the lowest level to the highest level. But although this analysis may seem perfect on a methodological level, it cannot be applied in the long term. The results are clear.
It is the North-East that is most at risk.
The most exposed counties are the following: Bergen, Essex, Passaic, Middlesex, Union, Flagler, Lake, Clay, Hernando, Osceola, Rockland County; Orange County, in the metropolitan area of Poughkeepsie; Rensselaer County, in the Albany metropolitan area; and Ulster County.
In these counties, average prices range from $ 160,000 to $ 300,000. But it is not excluded that these prices may vary due to this problem. As we have anticipated, however, drawing up a list of the areas most at risk is not useful enough if not for the contingency.
So what should we expect from market dynamics? How will the situation evolve? At the moment it is impossible to give an assessment that can include the long term. What is expected, however, and that is feared, is that this situation concentrated only in one area, can then spread, involving others. While waiting to know more, we invite you as always to stay updated on our portal!
