Yahoo Finance 4 Reasons These Housing Markets Were Named the Riskiest in America
You may have reason to be concerned about your local housing market if you live in parts of Illinois, California or New Jersey.
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According to a study by ATTOM, a curator of land, property and real estate data, metro areas around Chicago, inland California and New York City — whose metro area includes northeastern New Jersey — were among the most vulnerable to housing market risks in the first quarter of this year.
The study found that California, Illinois and New Jersey had 34 of the 50 counties considered most exposed to potential drop-offs. If you regularly follow the housing market trends across the country, you’ll note this is not the first time these areas have seen the concentrations of at-risk markets.
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According to ATTOM, “Counties were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with mortgage balances that exceeded estimated property values, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes and local unemployment rates.”
It’s important to point out that the study suggested that these areas were more vulnerable to declines, not that they’re facing an imminent crash. According to a Newsweek report on the ATTOM study, “A housing market downturn — which is not the same as a crash — usually occurs when demand starts dropping and prices consequently plummet, with owners seeing the value of their homes slide down.”
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Counties at Low Risk of a Downturn
ATTOM’s study found that counties in the South and Midwest had the lowest risk of a downturn, according to its metrics. Virginia had nine of the 50 counties with the least risk, and Wisconsin had seven. Tennessee had six low-risk counties.
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This article originally appeared on GOBankingRates.com: 4 Reasons These Housing Markets Were Named the Riskiest in America
