New report says 2 SoCal counties are most vulnerable to housing market troubles

Photo byThe HD Post

CALIFORNIA – ATTOM released a Special Housing Risk Report, September 5, spotlighting county-level housing markets around the United States that are more or less vulnerable to declines.

Two counties in Southern California – San Bernardino and Riverside, made the list as well as 10 counties in Northern California.

The report is based on home affordability, underwater mortgages and other measures in the second quarter of 2024.

Vulnerable to declines

The report says second-quarter patterns revealed that nearly half of the counties around the U.S. considered most exposed to potential drop-offs were in California, New Jersey and Illinois.

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;
• local unemployment rates.

Out of the 51 U.S. counties considered most vulnerable to housing market troubles, California had 12 counties -- San Bernardino and Riverside made the list for Southern California.

The report said Riverside county came in second highest for the amount of average local wages needed for major ownership costs.

These costs – mortgage payments, property taxes and insurance on median-priced single-family homes were considered seriously unaffordable in 33 of the 51 counties deemed most vulnerable to housing market troubles.

Expenses consume 74.4% of average local wages for homeowners in Riverside county.

ATTOM says more than one of every 1,000 residential properties faced a foreclosure action in 39 of the 51 most vulnerable counties. Nationwide, one in 1,575 homes were in that position.

Coming interest rate cuts

Federal Reserve bankers indicated they are prepared to cut interest rates in the coming weeks, a move that could potentially reduce unemployment and provide opportunities for refinancing at lower mortgage rates.

Cutting interest rates, however, typically does not lower inflation – it can lead to higher inflation in most cases.

To read the full ATTOm report visit https://www.attomdata.com/news/most-recent/q2-2024-u-s-housing-impact-report/

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