T
hinking about buying or selling a home in the coming months? If so, pay attention to the latest report on the Top 10 Most Vulnerable U.S. Housing Markets in Q3 2024. According to ATTOM's data, several U.S. housing markets are showing signs of vulnerability, primarily in California, New Jersey, Illinois, and Florida.

    The report uses various factors to determine a market's vulnerability, including underwater mortgages, income-to-mortgage ratio, foreclosure rates, and unemployment rates. A higher score indicates a potentially higher risk of a decline in the housing market. By combining these factors, ATTOM provides a comprehensive view of potential risks.

    ATTOM scrutinizes data across 578 counties nationwide, considering affordability challenges faced by homebuyers and the risk of foreclosures and delinquencies. The report looks at both overall market trends and specific local conditions, identifying warning signs such as high unemployment, underwater mortgages, and increasing foreclosure rates.

    Based on ATTOM's report, here are the top 10 most vulnerable U.S. housing markets in Q3 2024:

    1. Butte County, CA

    2. San Joaquin County, CA

    3. Kings County, CA

    4. Humboldt County, CA

    5. Cumberland County, NJ

    6. Kern County, CA

    7. Atlantic County, NJ

    8. Solano County, CA

    9. Lake County, IN

    10. Madera County, CA

    Each of these counties has a unique set of risk factors contributing to their vulnerability. For example, Butte County's affordability issues and moderate number of underwater mortgages make it a high-risk area. San Joaquin County's higher unemployment rate and lower income-to-mortgage ratio also contribute to its ranking.

    The findings of this report can have important implications for homebuyers and sellers. Homebuyers should proceed with caution in high-risk areas, carefully review their finances, and consider negotiating for favorable terms. Sellers should be prepared for a slower selling process and consider lowering their asking price or getting a pre-inspection to address potential problems.

    While ATTOM's report provides valuable insights, it's essential to consider other factors that could affect the housing market, such as local economies and job availability. The housing market is dynamic, and localized factors can influence the trajectory of specific neighborhoods and counties.