The report is based on the analysis of housing affordability, foreclosures, underwater mortgages, and unemployment situations in 578 counties, summarizing data from the third quarter of 2023.
However, it is important to emphasize that being included in the list of most vulnerable does not necessarily mean that these markets are on the brink of collapse; it signifies that they face more potential obstacles that could lead to a downturn.
New York City has the highest number of counties at risk in its real estate market, including Kings (Brooklyn), Richmond (Staten Island), and Bronx, among nine others.
In the suburbs of New Jersey, there are also six counties at higher risk, including Bergen, Essex, Ocean, Passaic, Sussex, and Union. The Chicago metropolitan area has seven vulnerable counties, including Cook, DeKalb, Kane, Lake, McHenry, and Will in Illinois, as well as Lake in Indiana.
On the other hand, the real estate market in the southern region is relatively stable, followed by the Midwest and New England regions. These areas typically have better employment conditions, and homeowners face a lower risk of foreclosure.
Among the 50 least vulnerable counties, Tennessee holds seven positions, with Davidson, Rutherford, and Williamson counties in the Nashville area taking three of them.
Wisconsin and Virginia each have four counties, including Alexander and Fairfax in Virginia. The Boston metropolitan area also has four stable counties, including Middlesex and Sussex counties in Massachusetts and Rockingham and Strafford counties in New Hampshire.
Although certain areas face risks, it is essential to consider multiple factors to assess the stability of the real estate market. In the current real estate market, there is a relatively high number of homebuyers, and loan approval is stricter to ensure that only the most qualified buyers receive loans.
Additionally, many homeowners have substantial home assets due to the growth in home values, and the unemployment rate is relatively low. Therefore, even in areas with risks, it does not necessarily mean that the real estate market will inevitably collapse.
