Trouble Brewing in These Markets?

Signs of housing market weakness are beginning to appear in some cites in the US. GOBAnkingRates.com evaluated 500 cities to identify those at higher risks of “problems” than others.

The criteria GOBankingRates used in its analysis of potentially problematic markets included:

• Higher rates of foreclosures and underwater mortgages
• Changes in median home listing prices
• Days on the market
• Percentage of for-sale listings with price cuts
• Comparisons of national average to determine which markets were lagging behind.

Florida has 16 cities on GOBankingRates’ list; Illinois has nine. Georgia, Connecticut, Maryland and Delaware also have too many cities on this list.

The top two cities most vulnerable to troubling housing markets are Peoria IL and Lakewood NJ. At -15.9%, Peoria’s housing prices experienced the biggest drop of any housing market in the country in the last year. Lakewood NJ came in with the second largest price drop in the country at -12.3%. Additionally, each of these cities has higher than national averages in terms of days on the market, percentages of underwater mortgages and higher foreclosure rates.

Take a look at some of the other cities GOBankingRates.com identified as cities with susceptible housing markets.

• Toledo OH – median list price of $84,900
  • 2 year change in pricing – 8.8%
  • Percentage of underwater mortgages – 24.7%
• Naperville IL – median list price of $439,990
  • 2 year change in pricing – -2.2%
  • 4% of listings have price cuts – highest
• Fort Lauderdale FL – median list price of $499,900
  • 2 year change in pricing – -0.2%
  • DOM 2X national average of 66
• Portsmouth VA – median list price of $165,700
  • 2 year change in pricing – 1.5%
  • 1:730 foreclosure rate – highest
• Baltimore MY – median list price of $169,900
  • 2 year change in pricing – 17.1%
  • Percentage of underwater mortgages – 26.5% (3^rd highest)
• Bridgeport CT – median list price of $189,900
  • 2 year change in pricing – 11.1%
  • Percentage of underwater mortgages – 29.9% (2^nd highest)
• Columbus GA – median list price of $115,450
  • 2 year change in pricing – -10.2%
  • Percentage of underwater mortgages – 22.2%
  • 1:1,172 foreclosure rate – 2^nd highest
• Menifee CA – median list price of $380,000
  • 2 year change in pricing – 8.3%
  • Percentage of underwater mortgages – 5.5%
  • 1:808 foreclosure rate – 3^rd highest

For a full list of all 50 cities, go to https://www.gobankingrates.com/investing/real-estate/housing-markets-that-are-turning-ugly/