The three most important things in real estate: location, location, location. And the US real estate market is in a strange place right now.
House prices remain stuck at historic highs with bidding wars reported in some places, even as Inventories of homes for sale start to increase and housing markets across the country, including some of the largest in the states below, are beginning to cool.
Where is everything heading? Realtor.com recently revised 2022 forecast, which is now calling for a 6.7% drop in sales this year. Forecasters had previously called for a 6.6% increase. But even if the new forecast is correct, it will still be the second-biggest sales year since 2007, just behind last year.
As always, some states will have better fares than others. Because companies consider the local housing market in their location decisions, CNBC’s Top US Countries for Business the study assesses the health of each state’s housing market as part of the broader Economic category, which accounts for 13% of the state’s total score this year Methodology. The housing index looks at year-over-year price increases, new construction each year, as well as foreclosures and insolvency in the first quarter.
Looking for a safe place to weather a potential housing storm? These ten states are the most stable.
Deadwood, South Dakota
John Elk | Image Bank | beautiful pictures
A solid economy in Mount Rushmore State has a steady increase in prices. Foreclosure activity is very low, but rising levels of underwater mortgages could herald some subsurface cracks.
Economic Ranking 2022: No. 12 (US Top Grade: B-)
Number of starts per 1,000 population: 8.8
Foreclosure rate: 1 in 17,724 housing units
Underwater mortgages: 4.8%
Contractors work on the roof of a home under construction in the Stillpointe subdivision in Sumter, South Carolina, on Tuesday, July 6, 2021.
Green Micah | Bloomberg | beautiful pictures
Inventories remain historically scarce with bidding wars still occurring in many parts of the world South Carolina market, and prices continue to rise steadily. However, new construction is on the rise and the strain on existing loans is coming under control.
Economic Ranking 2022: No. 13 (tie) (US 1st place: B-)
Number of starts per 1,000 population: 9.5
Foreclosure rate: 1 in 1,081 housing units
Underwater mortgages: 3.4%
A worker builds a new home at a housing development in Phoenix, Arizona.
Justin Sullivan | beautiful pictures
Prices here are rising higher than in any other state. But new construction is also booming, which eases Arizonainventory of crunch. Rising foreclosure prices are a potential cause for concern, but home ownership is solid.
Economic Ranking 2022: No. 22 (tie) (US 1st place: C-)
Number of starts per 1,000 population: 9
Foreclosure rate: 1 in 1,861 housing units
Underwater mortgages: 1.4%
A traditional house in Vermont.
Gerard Sioen | beautiful pictures
The Green Mountain State continues to benefit from new residents seeking refuge from major cities. Home prices are rising at a steady rate, and mortgage excesses are healthy. However, the new construction did not keep up with the progress and the economy as a whole in the past Vermont is slow.
Economic Ranking 2022: No. 33 (US First: D+)
Number of starts per 1,000 population: 3.2
Foreclosure rate: 1 in 13,930 housing units
Underwater mortgages: 1.1%
A house in Nashville, Tennessee.
Isabella Pino | Universal Image Group | beautiful pictures
Tennessee has the second strongest overall economy in the country, and the stable and strong housing market is the main reason why. House prices are rising along with economic output. New construction is still good, although foreclosures and underwater mortgages are starting to increase.
Economic Ranking 2022: No. 2 (US First: A+)
Number of starts per 1,000 population: 8.2
Foreclosure rate: 1 in 2,797 housing units
Underwater mortgages: 2.9%
‘New Homes’ sign near CBH Homes Copper River Basin Community in Nampa, Idaho, October 19, 2021.
Kyle Green | Bloomberg | beautiful pictures
IdahoThe housing market has been hot for a while. Buying a home in Bang Gem is not for the faint of heart. However, new construction is slowly starting to ease the inventory squeeze. Increased foreclosures are a potential warning sign if the economy slips into recession.
Economic Ranking 2022: No. 5 (US 1st: A)
Number of starts per 1,000 population: 10.5
Foreclosure rate: 1 in 6,015 housing units
Underwater mortgages: 1.6%
A residential area in Austin, Texas, on Sunday, May 22, 2022.
Jordan Vonderhaar | Bloomberg | beautiful pictures
Texas‘population growth is helping to fuel a housing boom, but one that’s not out of reach. New homes for these new residents are popping up rapidly, and home ownership is good.
Economic Ranking 2022: No. 8 (US First Class: A-)
Number of starts per 1,000 population: 8.9
Foreclosure rate: 1 in 2,326 housing units
Underwater mortgages: 2.5%
Signed single-family home in St. Cloud, Florida.
Jeff Greenberg | Universal Image Group | beautiful pictures
It’s almost all sunshine and clear light Floridahousing market. Prices are jumping, but so is the construction team. Soaring foreclosure rates in a state known for boom and bust cycles could be a cloud on the horizon.
Economic Ranking 2022: Number 4 (U.S. Top Grade: A)
Number of starts per 1,000 population: 9.6
Foreclosure rate: 1 in 1,211 housing units
Underwater mortgages: 1.4%
A “For Sale” sign is posted outside a residential home in the Queen Anne neighborhood of Seattle, Washington, May 14, 2021.
Karen Ducey | Reuters
WashingtonIts impressive economic growth has kept its housing market one of the hottest in the nation for several years now, despite predictions of a collapse. The lack of new construction is probably keeping prices high and continues to raise concerns about the stability of the market.
Economic Ranking 2022: No. 3 (U.S. Top Grade: A)
Number of starts per 1,000 population: 7.3
Foreclosure rate: 1 in 4,965 housing units
Underwater mortgages: 1.2%
A worker uses a Volvo AB excavator to make roads during residential construction in Saratoga Springs, Utah.
George Frey | Bloomberg | beautiful pictures
No matter how you look at it, the housing market in the Beehive State is buzzing. Prices are rising at the second highest rate in the country, but with the nation’s fastest rate of new construction, a lot of new inventory is being built. Utah. Manageable foreclosures and homeownership values are strong in the nation’s leading housing market.
Economic Ranking 2022: No. 6 (U.S. First: A)
Number of starts per 1,000 population: 12.2
Foreclosure rate: 1 in 2,063 housing units
Underwater mortgages: 1.4%
Data sources: CNBC Top US State Research, Federal Housing Finance Agency, US Census Bureau, ATTOM Data Solutions.