The good news is that only 10 of the nation’s top 100 metro markets are considered high-risk. The bad news is that eight of them are concentrated in Florida.
CoreLogic released its Market Health Indicator for the second quarter. The results are based on home price sustainability, appreciation relative to rents, and house flipping and fraud levels.
Of the eight at-risk Florida markets, which include Fort Lauderdale, Miami, and Tampa, seven have had 50 percent home price appreciation since 2012 (Jacksonville had 41 percent) with rent appreciation at half of the home appreciation pace. All eight are considered overvalued, pointing at both price-to-income measures and price-to-rent measures.
It is worth noting that Florida has lending and property characteristics that correlate with elevated fraud risk as four of the eight high-risk Florida markets are in the top 10 fraud risk ranking and the other four are in the top 20.
Metros with low market risk include Albany, N.Y., Boston, and Milwaukee.
PB Topical Ref
