California and Florida Top new list of the risky housing markets in the nation
Following devastating forest fires and hurricanes, parts of California and Florida are at the top of a new list of housing markets with the greatest risk of a decline in housing values.
Of the 50 markets with the highest risk, 14 were in California, seven in Florida, five in New Jersey and four in Louisiana, according to the second quarter Housing risk -Report from real estate analysis company Attom.
The most risky housing market in the Nation is now Charlotte County in Florida, the home of Punta Gorda on the Gulf Coast, the report showed.
Risk was determined by a combination of affordability compared to local incomes, the share of serious underwater mortgages, preventments and provincial unemployment rates.
In 19% of the 579 provinces with sufficient data to analyze, residents should spend a stunning 50% or more of their annual income to buy and maintain the typical house.
In 63% of the provinces, residents would have to spend at least one third of their annual wages on home costs, so that the traditional definition of priceless was paid.
The median selling price for existing houses set up a new of all time this summer and reached $ 432,700 in June, according to the National Association of Realtors®.
Nevertheless, home transactions have been delayed to the pace of a snails, because many buyers from the market are priced, which leads to questions about how long those exalted price ranges can be maintained.
“There is uncertainty about how long prices can continue to rise, and what will happen to the wider economy,” says Attom CEO Rob Barber. “That can be scary for owners and potential buyers who do not always get a full view of their market.”
Nationally, home buyers could expect on average that they would issue 34% of their income in home costs, according to the ATOM report.
But in some provinces, the housing costs were much higher and even surpassed what the typical employee could cover with 100% of their annual salary.
In Marin County, the home costs consumed 120% of the annual wages of the typical resident, followed by Santa Cruz County, ca (116%); Maui County, Hi (112%) and Kings County, NY (109%).
Nationally, only 2.7% of the houses were considered serious under water, which means that the combined estimated balance of loans established by the properties was at least 25% more than the estimated market values of the properties.
Louisiana, however, showed an unusually high concentration of underwater properties, however, with speeds above 10% in at least seven parishes.
Seven of the 10 provinces with the highest rates under water were in Louisiana. The top five were Rapides parish (17.3%of the houses seriously under water), Calcasieu -parish (16.9%), Caddo -Parochie (14.3%), Tangipahoa -Parochie (14.1%) and East Baton Rouge Parish (12.1%) -all in Louisiana.
The most risky provinces in the Attom analysis were characterized by a combination of relatively high shielding and unemployment rates.
In California, various provinces with the highest risk have been hit hard by forest fires in recent years. In Florida, hurricane risk and high insurance premiums have led to a recession in housing values in various large markets.
“This summer’s house prices were certainly striking, but there are many factors that contribute to the health of a local housing market,” says Barber. “Our index takes into account important indicators that go beyond just selling price to make a barometer that helps people to better understand where their market is going.”
In the meantime, the report mentions New York’s Erie County, the home base of Buffalo, as the safest housing market in the nation.
Among the 50 least risky provinces were those with the smallest share of wages needed to cover the housing costs 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%).
