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The Northeast and Northern Illinois' housing markets are most at risk of feeling the impacts of the COVID-19 pandemic, according to ATTOM Data Solutions' second-quarter 2020 Special Report. It says the stretch of states running from Connecticut to Washington, D.C., as well as Illinois had 43 of the 50 counties most vulnerable to the economic impact of COVID-19.
These counties include 11 suburban areas around New York City, seven in Chicago, five in the Washington, D.C. area and four around Baltimore. Only four of the vulnerable counties exist in the West, all of which are within California. ATTOM determines counties more or less at risk by exploring the percentage of homes currently facing possible foreclosure, the number of homes with mortgage balances that exceed the property value and the percentage of local wages required to pay for major homeownership expenses.
“Home-sales data from around the country is starting to show that eight years of price gains may be coming to an end amid the economic damage flowing from the virus pandemic. It’s still too early to make any definitive calls, but the latest numbers show storm clouds gathering over the market,” said Todd Teta, chief product officer with ATTOM Data Solutions. “With this second special report on the potential impact of the pandemic, we see pockets around the country that appear more or less poised to withstand downward pressure on prices and other market conditions. Over the next few months, enough data should come in to tell us how things will most likely pan out.”
ATTOM's report revealed the most vulnerable clusters are around New York City, Chicago, Baltimore and Washington, D.C. In these most at-risk areas, there are higher levels of unaffordable housing, mortgages underwater and foreclosure activity has been found.
Read more from ATTOM's second-quarter 2020 Special Report.