T
he US housing market's current boom may be short-lived, with over 50 counties at risk of a meltdown. Research from property-data firm Attom highlights states like California, New Jersey, and Illinois as hotspots where prices could plummet due to high levels of underwater mortgages, foreclosures, and unemployment.

    Key areas such as New York City, Chicago, and parts of California are particularly vulnerable. The usual suspects driving this risk include soaring foreclosures, underwater mortgages, and rising unemployment rates. Attom CEO Rob Barber notes that while the housing market continues to gain momentum, some markets show signs of potential instability.

    Attom analyzed data from 600 US counties, flagging hotspots like the New York City and Chicago metro areas, as well as large chunks of California. Of the 51 most vulnerable counties, 24 were in these regions, including Brooklyn, Staten Island, and The Bronx in New York, and four nearby New Jersey counties.

    Some Sun Belt regions that saw price booms during the pandemic are already experiencing price drops, with cities like Austin and Cape Coral facing significant declines. Meanwhile, pandemic housing hotspots like Fort Worth and Tampa are feeling the burn, with home values sliding as more properties hit the market.

    In Florida, the condo market is in crisis mode, with owners slashing prices to avoid massive repair bills. Condo markets in Florida are also seeing distress due to new safety regulations following the 2021 collapse of the Champlain Towers in Surfside.

    For buyers, there's some relief in these softer markets, but don't get too comfortable – the average down payment is now a whopping $67,500, and in some US cities it's even higher. With the housing market still facing challenges, it's crucial to closely monitor regions where key indicators suggest a higher likelihood of issues.