South Florida Aerial View – Housing Market – Courtesy: Shutterstock – Image by pisaphotography
Parts of Florida and California are at the top of a new list of property areas most at risk of a decline in home values, following deadly storms and wildfires.
California had 14 of the 50 highest-risk markets, Florida had seven, New Jersey had five, and Louisiana had four, according to the real estate analytics firm ATTOM’s second quarter housing risk report.
According to the survey, Charlotte County, Florida, which is home to Punta Gorda on the Gulf Coast, is currently the most dangerous property market in the country.
A mix of county unemployment rates, the percentage of substantially underwater mortgages, foreclosures, and affordability in relation to local earnings were used to calculate risk.
To buy and maintain a conventional home, inhabitants in 19% of the 579 counties with enough data to evaluate would need to pay an astounding 50% or more of their annual income.
The previous definition of unaffordable would have been met by inhabitants in 63% of the counties, who would have had to spend at least a third of their yearly income on household expenses.
According to the National Association of Realtors®, the median sales price for existing homes hit a new high this summer, hitting $432,700 in June.
However, because many buyers are priced out of the market, home transactions have slowed to a snail’s pace, raising concerns about how long such high price ranges can be maintained.
According to Rob Barber, CEO of ATTOM, “it’s unclear how long prices can continue to rise and what will happen with the broader economy.” “Because they don’t always have a complete picture of their market, that can be frightening for owners and potential buyers.”
According to the ATTOM research, homebuyers nationwide should anticipate spending 34% of their salary on housing costs.
However, housing costs in other areas were much higher, even beyond what the average worker could afford to pay for with their entire yearly salary.
Home expenses took up 120% of the average resident’s yearly income in Marin County, California, followed by Santa Cruz County, California (116%), Maui County, Hawaii (112%), and Kings County, New York (109%).
Only 2.7% of homes nationwide were classified as substantially underwater, which means that the total estimated balance of loans backed by the properties exceeded their assessed market values by at least 25%.
At least seven parishes in Louisiana had rates exceeding 10%, indicating an abnormally large concentration of underwater properties.
Louisiana accounted for seven of the ten counties with the greatest rates of undersea activity. The top five were all in Louisiana: Caddo Parish (14.3%), Tangipahoa Parish (14.1%), East Baton Rouge Parish (12.1%), Calcasieu Parish (16.9%), and Rapides Parish (17.3% of homes significantly underwater).
A combination of comparatively high unemployment and foreclosure rates identified the riskiest counties in the ATTOM investigation.
Several of California’s most vulnerable counties have seen severe wildfires in recent years. Home values in numerous major areas in Florida have declined as a result of hurricane risk and high insurance costs.
“The home prices this summer were definitely striking, but a local housing market’s health depends on a number of factors,” Barber adds. “Our index creates a barometer that helps people better understand where their market is headed by taking into account key indicators beyond just sales price.”
Buffalo is located in Erie County, New York, which the research claims has the safest housing market in the country.
Chautauqua County, NY (17.8%), Potter County, TX (19.6%), Erie County, NY (22.6%), Madison County, AL (25.8%), and Olmsted County, MN (27.5%) had the lowest percentage of wages required to meet household expenses among the 50 least risky counties.
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Chris began his writing as a hobby while attending Florida Southern College in Lakeland, Florida. Today he and his wife live in the Orlando area with their three children and dog.
