Which US states are prone to mass foreclosures?
A host of economic factors have pushed some states to the questionable list of negative equity allocation. Nothaft highlighted Oklahoma and Louisiana as two markets where economies rely heavily on the energy sector, primarily oil and gas.
âUntil recently, energy prices were down because demand was down,â he said. The pandemic has forced more people to stay at home, the economist observed, leading to a drop in demand for gas – as well as widespread layoffs in oil production and exploration. “Oil prices are on the rise now, but this has affected employment and job creation during the economic recovery.”
Other vulnerable places simply have not experienced the kind of economic growth that other regions have, the economist said. Some areas did not hit the national index of 18% in terms of increasing home values, Nothaft said. Take the state of Louisiana: “Home prices have increased by about 9.7% in the 12 months – from October 20, 2020 to October 20, 2021 – which is pretty good,” the economist noted. chief, âbut pale in comparison to other states. “
For example, in Texas – where it is often said that everything is bigger – house prices rose 17.9%. That’s a hair from the 18% barometer that serves as CoreLogic’s national index.
Beyond the abstraction of numbers, negative stock statistics indicate the possibility of financial demands on the horizon in some markets, the economist agreed. âAreas that have higher negative equity are also more likely to see some of these loans go into a troubled sales situation like foreclosures. “