Worrisome signs: NJ housing markets at risk of a slowdown in 2024

New Jersey has a strong presence in a new report that lists the U.S. counties most at risk of a housing market slowdown.

The 2024 first-quarter list from ATTOM, a real-estate data company, isn't a great one to be on, because it takes into account factors such as underwater mortgages and jobless rates.

New Jersey, California, and Illinois account for 34 of the 50 counties around the country that are considered to be the most exposed to a market drop-off.

ATTOM based its list based on: the percentage of homes facing foreclosure; the share of mortgage balances that exceed estimated property values (underwater); the percentage of average wages needed to pay for a home; and local unemployment rates.

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In 41 of the 50 most at-risk counties, at least 5% of residential mortgages were underwater in the first quarter of this year.

Warren County and Sussex County had among the highest rates of foreclosure actions in the first quarter, according to the analysis.

Highest risk of housing market slowdown in NJ (ATTOM)

Atlantic County

⚫ Median sales price: $290,000

⚫ Percentage of income to buy: 38.8%

⚫ Percentage of properties underwater: 7.1%

⚫ Percentage of properties with foreclosure filing: 0.16%

⚫ Unemployment rate: 6.5%

Essex County

⚫ Median sales price: $540,000

⚫ Percentage of income to buy: 51.3%

⚫ Percentage of properties underwater: 5.1%

⚫ Percentage of properties with foreclosure filing: 0.14%

⚫ Unemployment rate: 5.8%

Sussex County

⚫ Median sales price: $350,000

⚫ Percentage of income to buy: 48.7%

⚫ Percentage of properties underwater: 4.8%

⚫ Percentage of properties with foreclosure filing: 0.18%

⚫ Unemployment rate: 4.8%

Passaic County

⚫ Median sales price: $482,250

⚫ Percentage of income to buy: 62.1%

⚫ Percentage of properties underwater: 4.4%

⚫ Percentage of properties with foreclosure filing: 0.11%

⚫ Unemployment rate: 5.9%

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Warren County

⚫ Median sales price: $335,000

⚫ Percentage of income to buy: 42.9%

⚫ Percentage of properties underwater: 5.6%

⚫ Percentage of properties with foreclosure filing: 0.19%

⚫ Unemployment rate: 4.5%

Union County

⚫ Median sales price: $525,000

⚫ Percentage of income to buy: 50.6%

⚫ Percentage of properties underwater: 4.9%

⚫ Percentage of properties with foreclosure filing: 0.11%

⚫ Unemployment rate: 5.1%

Gloucester County

⚫ Median sales price: $289,950

⚫ Percentage of income to buy: 42%

⚫ Percentage of properties underwater: 4.8%

⚫ Percentage of properties with foreclosure filing: 0.17%

⚫ Unemployment rate: 4.5%

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