Study finds that Metro Denver is in the top half of the weak housing markets

The Denver metro housing market is among the most vulnerable during the economic downturn, but it doesn’t rank among the ashiest in the country, according to an analysis by Seattle-based brokerage Redfin.

With interest rates rising, home sales falling, and home price gains peaking, Redfin has examined a variety of measures to determine the degree of “risk” for major metro areas in the United States.

Recession fears are mounting, mostly because the Fed has indicated that it will continue to raise interest rates to tame inflation and cool consumer demand. “Rising interest rates have led to higher mortgage rates, which is already slowing the housing market,” said Redfin chief economist Shahriar Bukhari, in a statement accompanying the study.

Bukhari predicted that if the country enters a recession, assuming it is not already in a recession, a collapse in the housing market like the kind we experienced in the Great Recession is unlikely. But this does not mean that some areas will not be affected more than others or that housing prices will not start to fall.

“First, what goes up must go down. Home prices have risen at an unsustainable rate in many epidemic housing-buying hotspots. In addition, places where people tend to have high debt relative to their income and housing are at risk because their residents are more vulnerable To book a mortgage or sell at a loss.

Among the risk factors that Redfin looked at was the average ratio of mortgages to home values. the share of home sales that has flipped; How quickly the housing market will cool in the first half of this year; the amount of migration, within or outside an area; Market share of second home sales, annual home price gains.

With a risk score of 84, Riverside, California has the highest chance of housing decline in the 98 metro areas examined. Boise, Idaho, Cape Coral, and Northport, Florida followed. Las Vegas, known for its boom and bust cycles, was also there with a score of 74.

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