The COVID-19 pandemic has had a limited negative impact on the housing markets of North Carolina’s five metropolitan areas, according to a national real-estate report timed for release Thursday.
Attom Data Solutions’ latest pandemic-related report is based on second-quarter 2021 data in three economic measuring sticks: home affordability; number of homes considered as underwater (amount owed is more than the value of the home); and foreclosure filings.
Out of the 566 metropolitan statistical areas measured, Guilford County was listed highest at No. 303 in terms of risk, followed by Forsyth County at No. 345, Wake County at No. 504, Mecklenburg at No. 507 and Durham County at No. 554.
Attom had Forsyth’s median sales price for a single-family home as $202,500.
It said that 9,494 out of 86,856 Forsyth residences with mortgages — or 10.9% — are underwater.
There were 39 foreclosure filings during the second quarter, representing a 0.02% foreclosure rate.
By comparison, for Guilford, the median sales price for a single-family home was $190,000.
There were 10%, or 11,220 out of 112,072, Guilford residences with mortgages that are underwater.
There were 85 foreclosure filings during the second quarter, representing a 0.04% foreclosure rate.
“The coronavirus pandemic is easing, and the U.S. economy is gradually coming back to life, which suggests that the nation’s housing market will indeed escape any major damage from the crisis,” said Todd Teta, chief product officer with Attom. “No major signs are showing anything different at this point.
“Nevertheless, the pandemic is still out there and remains a potent threat to home sales and values, as well as to the broader economy.”
Most foreclosures that proceeded in 2020 were related to vacant and abandoned properties.
However, Attom analysts have warned there could be substantial unleashing of foreclosure filings accompanying an economic recovery this year.
A statewide eviction moratorium put in place by Gov. Roy Cooper limited more foreclosure filings during the quarter to vacant and abandoned properties.
Cooper signed an executive order at the start of the COVID-19 pandemic in March 2020 in which he urged banks, credit unions and other lenders “not to charge customers for overdraft fees, late fees and other penalties.” The statewide eviction moratorium expired June 30.
However, the federal CARES Act provided forbearance for borrowers with federally backed mortgage loans who were economically impacted by the pandemic. It is slated to expire July 31.
Attom analysts have warned there could be substantial unleashing of foreclosure filings accompanying an economic recovery this year.
Last year’s numbers were extraordinarily low due to the implementation of the foreclosure moratorium and the CARES Act mortgage forbearance program, so the year-over-year numbers look a lot more dramatic than they are,” said Rick Sharga, executive vice president for Attom affiliate RealtyTrac.