“Our index takes into account key indicators beyond just sales price to create a barometer that helps folks better understand where their market is headed.”
He added, “There’s uncertainty about how long prices can keep going up, and what will happen with the broader economy. That can be scary for owners and prospective buyers who don’t always get a full view of their market.”
Foreclosure and unemployment rates drive risk
The riskiest counties, including Charlotte County, FL; Humboldt County, CA; Shasta County, CA; Butte County, CA; and Cumberland County, NJ, were marked by both high foreclosure activity and unemployment rates above the June national average of 4.36%. Each also had at least one in every 766 homes in foreclosure.
In California, it was especially hard for people to afford homes. In Marin County, the cost of owning a home was almost 120% of what the average person earned in a year. Santa Cruz and San Luis Obispo counties also had home costs much higher than local incomes. Across the country, about 2.7% of homes were worth less than what was owed on them, but in some Louisiana parishes, like Rapides and Calcasieu, that number jumped to 17.3%, well above the national average.
Meanwhile, according to a new analysis released by Realtor.com, 26% of US homes—representing $12.7 trillion in real estate value—are exposed to severe or extreme risks from flooding, wildfire or hurricane winds. The findings highlight how climate change is reshaping housing markets nationwide and creating financial burdens for millions of homeowners.