ATTOM Data Solutions produces a quarterly Housing Risk Report that looks at which county-level housing markets are most vulnerable to decline based on factors like affordability, equity, unemployment rate, and foreclosure activity. According to the most recent release, affordability remains challenging nearly everywhere but the riskiest markets are still mostly isolated in a few regions. For example, of the 50 riskiest markets, 21 were in California and Florida, while Illinois and New Jersey each had five. That means more than half of the 50 most vulnerable markets were in just four states. Similarly, almost half of the strongest counties were clustered in Tennessee, Virginia, Wisconsin, and Michigan. Rob Barber, ATTOM’s CEO, says unemployment and foreclosure rates are the biggest risk indicators. “While home prices have eased slightly from last summer’s record highs, affordability remains a challenge in much of the country,” Barber said. “The greatest risk remains in counties where unemployment rates are above 5 percent and homes are being foreclosed at greater rates.” (source)
