Fresno, California (KFSN) — Economic uncertainty is rocking the housing market.
Some Valley counties are considered “endangered” markets.
It is a company specializing in real estate data called ATTOM.
We calculated the numbers to determine which markets could be at risk if the economic downturn continues.
Unfortunately, Valley was well represented on this list.
The factors ATTOM considered in ranking the “at-risk” housing market were unemployment rate, affordability, foreclosure activity, and mortgage rate (a person who borrows more money than the house is worth). (if any).
ATTOM’s Rick Sharga says Valley County tends to rank higher because it has a higher unemployment rate than the rest of the United States.
Madera County was the highest regional county on the national list, ranking 14th.
“The percentage of income required to buy a home was just over 40%, compared to the national average of 26%,” says Sharga.
“There was a little more foreclosure activity in Madera than in the rest of the country, but it’s nothing to be overly concerned about.”
Sharga also noted a troubling trend in Kings County, which ranked 35th overall and rated more affordable than Madera County.
“Nearly 20 percent of Kings County borrowers are delinquent on their loans, one of the highest in the nation.”
ATTOM’s risk rating is not designed to indicate which areas have problems.
“What we’re trying to show here are areas that are more likely to have problems if the economy goes down,” says Sharga.
Shaga noted that many of the California markets on the endangered list were also heavily impacted during the 2008 Great Recession. Some counties have never fully recovered from the housing market crash, he says.
“The flag is worth waving,” says Sharga.
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