It’s no secret that the housing market has seen a shift in the last few months, with rising interest rates and inflation causing some buyers to halt their home search. However, despite these changes, Washington state was recently ranked as the second most stable housing market in the country.
Based on a recent study from CNBC, which weighed economic health, annual home price appreciation, new construction per year and foreclosures and insolvency from the beginning of 2022, Utah is the most stable housing market at the moment, with Washington close behind. Following Washington were Florida, Texas and Idaho at numbers 3, 4 and 5, respectively.
The Evergreen State’s 2022 Economic Rating put it at number 3 in the country for that category, while Utah was number 6. However Utah had a higher price appreciation of 27.1% compared to Washington’s 20.1%. Arizona, Idaho and Florida also led the nation in terms of price appreciation at 27.4%, 27% and 25.7%, respectively.
Washington also had 7.3 housing starts per 1,000 people, only beating Vermont among the top ten states. However, our low foreclosure rate of 1 in 4,965 houses and scant 1.2% of underwater mortgages helped to secure our spot as number 2 on the list.
Utah was rated as the top market thanks to its high home price appreciation and its fast rate of new construction starts.
Rounding out the top ten was South Dakota, which was notable for its home price appreciation and strong economy. However, the increasing number of underwater mortgages and foreclosures in the area suggested that the market could face trouble in the future.
The analysis from CNBC highlighted Washington’s strong sustained economic growth over the past several years as one of the hallmarks of our market. This, combined with the low rate of foreclosures, makes the Seattle area a great place to live and potentially invest while waiting for the market to fully stabilize post-pandemic.
