These housing markets are most vulnerable to declining values

The regions that could be most vulnerable to depreciation based on loan-to-value ratios, mortgage performance, housing costs and local incomes are increasingly concentrated in New Jersey, Illinois and California, a new report by Attom Data Solutions shows.

Ten of the 50 most at-risk counties are in the Golden State, according to a new report by Attom Data Solutions. Eight are in Chicago or its suburbs. Six are in New Jersey. Maryland, Philadelphia and Cleveland each have three at-risk counties. Delaware has two.

The findings are based on a first-quarter analysis of underwater loans, foreclosures, affordability and employment pressures are putting downward pressure on home prices.

“While the housing market has been exceptionally strong over the past few years, that doesn’t mean t. aren’t areas of potential vulnerability if economic conditions continue to weaken,” said Rick Sharga, executive vice president of market intelligence at Attom, in a press release.

The South is most likely to hold up best if they do, according to Attom’s report. A little over half of the 50 counties least vulnerable to depreciation are located t.. Tennessee, for example, has five in the Nashville area.

Sometimes the distance between the areas that are the most and least vulnerable to home-price depreciation is not all that far. The Northeast not only has some of the most vulnerable counties, it’s home to five of those with the least risk. Also, the Midwest is home to some of the least risky counties in addition to certain of the most vulnerable. Four of the former are in Wisconsin.