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Foreclosures Drop To 13-Year Low

ATTOM Data Solutions released its Year-End 2018 U.S. Foreclosure Market Report, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 624,753 U.S. properties in 2018, down 8 percent from 2017 and down 78 percent from a peak of nearly 2.9 million in 2010 to the lowest level since 2005.


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Those 624,753 properties with foreclosure filings in 2018 represented 0.47 percent of all U.S. housing units, down from 0.51 percent in 2017 and down from a peak of 2.23 percent in 2010 to the lowest level since 2005.


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ATTOM’s year-end foreclosure report provides a unique count of properties with a foreclosure filing during the year based on publicly recorded and published foreclosure filings collected in more than 2,500 counties nationwide, with address-level data on more than 23 million foreclosure filings historically also available for license or customized reporting. See full methodology below.


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The report also includes new data for December 2018, when there were 52,069 U.S. properties with foreclosure filings, down 2 percent from the previous month and down 19 percent from a year ago — the 6th consecutive month with a year-over-year decrease in foreclosure activity.


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“Plummeting foreclosure completions combined with consistently falling foreclosure timelines in 2018 provide evidence that most of the distress from the last housing crisis has now been cleaned up,” said Todd Teta, Chief Product Officer. “But there was also some evidence of distress gradually returning to the housing market in 2018, with foreclosure starts increasing from the previous year in more than one-third of all state and local housing markets. 

“Some of that distress was driven by natural disasters, most notably in Houston, where foreclosure starts increased 61 percent,” Teta continued. “But natural disasters do not explain the increase in markets such as Detroit, Minneapolis-St. Paul, Milwaukee and Austin — all of which posted double-digit percentage increases in foreclosure starts in 2018.”

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Foreclosure Activity Is Down 8% From A Year Ago, Lowest Level Since Q4 2005

ATTOM Data Solutions released its Q3 2018 U.S. Foreclosure Market Report, which shows a total of 177,146 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the third quarter, down 6 percent from the previous quarter and down 8 percent from a year ago to the lowest level since Q4 2005 — a nearly 13-year low.


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U.S. foreclosure activity in Q3 2018 was 36 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007 — the eighth consecutive quarter where U.S. foreclosure activity has registered below the pre-recession average.


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“A decade after poorly underwritten mortgages triggered a housing market crash, it’s clear that the foreclosure risk associated with those problem mortgages has faded — average foreclosure timelines have dropped to a two-year low, and the share of foreclosures tied to 2004-to-2008 loans has dropped well below 50 percent,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “The biggest foreclosure risk in today’s housing market comes from natural disaster events such as the twin hurricanes of a year ago. Foreclosure starts spiked in the third quarter in many local markets impacted by those hurricanes. Secondarily, we are seeing relatively modest — but more widespread — foreclosure risk associated with FHA loans originated in 2014 and 2015.”


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Lenders started the foreclosure process on 91,849 U.S. properties in Q3 2018, down 6 percent from the previous quarter and down 3 percent from a year ago — the 13thconsecutive quarter with a year-over-year decrease in foreclosure starts.

Counter to the national trend, 15 states posted year-over-year increases in foreclosure starts in Q3 2018, including Florida (up 25 percent); Texas (up 3 percent); Maryland (up 13 percent); Michigan (up 32 percent); and Missouri (up 10 percent).

Also counter to the national trend, 79 of 219 metropolitan statistical areas analyzed in the report (36 percent) posted a year-over-year increase in foreclosure starts in Q3 2018, including Los Angeles, California (up 2 percent); Houston, Texas (up 51 percent); Washington, D.C. (up 2 percent); Miami, Florida (up 29 percent); and Detroit, Michigan (up 65 percent).

Other markets with at least 1 million people and a year-over-year increase of at least 15 percent in foreclosure starts in Q3 2018 were Minneapolis-St. Paul, Minnesota; Tampa-St. Petersburg, Florida; St. Louis, Missouri; Orlando, Florida; Las Vegas, Nevada; Austin, Texas, Milwaukee, Wisconsin; Jacksonville, Florida; and Grand Rapids, Wyoming.

Refinances Drop 21% In Q3 2018

ATTOM Data Solutions released its Q3 2018 U.S. Residential Property Mortgage Origination Report, which shows that 681,455 refinance mortgages secured by residential property (1 to 4 units) were originated in the third quarter, down 15 percent from the previous quarter and down 21 percent from a year ago to the lowest level as far back as data is available — Q1 2000.

The refinance mortgages originated in Q3 2018 represented an estimated $175.1 billion in total dollar volume, down 14 percent from the previous quarter and down 21 percent from a year ago to the lowest level since Q1 2014 — a 4.5-year low.

“Rising mortgage rates continued to dampen demand for mortgages in the third quarter, particularly refinance mortgages,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “There were some notable exceptions to that trend, primarily in markets affected by the hurricanes in the third quarter of 2017.”

Refinance originations increase in Houston, Miami, Tampa

Residential refinance mortgage originations decreased from a year ago in 197 of the 225 metropolitan statistical areas analyzed in the report (88 percent), including Los Angeles (down 31 percent); New York (down 11 percent); Dallas-Fort Worth (down 5 percent); Phoenix (down 14 percent); and Atlanta (down 33 percent).

Counter to the national trend, residential refinance mortgage originations increased from a year ago in 28 of the 225 metro areas analyzed in the report (12 percent), including Houston (up 69 percent); Miami (up 29 percent); Tampa-St. Petersburg (up 33 percent); San Antonio (up 3 percent); and Orlando (up 30 percent).


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Purchase mortgage originations down 2 percent from year ago

Lenders originated 892,760 residential purchase mortgages in Q3 2018, down 5 percent from the previous quarter and down 2 percent from a year ago.


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Residential purchase mortgage originations decreased from a year ago in 121 of the 225 metropolitan statistical areas analyzed in the report (54 percent), including New York (down 6 percent); Dallas-Fort Worth (down 5 percent); Chicago (down 14 percent); Phoenix (down 2 percent); and Los Angeles (down 14 percent).

Counter to the national trend, residential purchase mortgage originations increased from a year ago in 104 of the 225 metro areas analyzed in the report (46 percent), including Atlanta (up 12 percent); Houston (up 3 percent); Miami (up 2 percent); Tampa-St. Petersburg (up 3 percent); and Nashville (up 1 percent).

HELOC originations down 11 percent from year ago

A total of 313,744 Home Equity Lines of Credit (HELOCs) were originated on residential properties in Q3 2018, down 14 percent from the previous quarter and down 11 percent from a year ago.


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Residential HELOC mortgage originations decreased from a year ago in 150 of the 225 metropolitan statistical areas analyzed in the report (67 percent), including New York (down 14 percent); Los Angeles (down 18 percent); Seattle (down 3 percent); Chicago (down 27 percent); and Philadelphia (down 16 percent).

Counter to the national trend, residential HELOC mortgage originations increased from a year ago in 73 of the 225 metro areas analyzed in the report (32 percent), including Miami (up 4 percent); Tampa-St. Petersburg (up 22 percent); Kansas City (up 20 percent); Orlando (up 3 percent); and Omaha (up 11 percent).

Median down payment percentage at nearly 15-year high

The median down payment on single family homes and condos purchased with financing in Q3 2018 was $20,250, up 7 percent from the previous quarter and up 16 percent from a year ago to a record high as far back as data is available, Q1 2000.

The median down payment as a percentage of the median home sales price in Q3 2018 was 7.6 percent, up from 7.2 percent in the previous quarter and up from 6.8 percent in Q3 2017 to the highest since Q4 2003 — a nearly 15-year high.

Among 96 metropolitan statistical areas analyzed in the report for down payments, those with the highest median down payment as a percentage of median home sales price in Q3 2018 were San Jose, California (24.7 percent); San Francisco, California (23.3 percent); Los Angeles, California (20.6 percent); Oxnard-Thousand Oaks-Ventura, California (19.0 percent); and Fort Collins, Colorado (18.6 percent).

FHA loan share increases from more than 10-year low in previous quarter

Residential loans backed by the Federal Housing Administration (FHA) accounted for 10.5 percent of all residential property loans originated in Q3 2018, up from a more than 10-year low of 10.2 percent in the previous quarter but still down from 12.5 percent a year ago.

Residential loans backed by the U.S. Department of Veterans Affairs (VA) accounted for 5.5 percent of all residential property loans originated in Q3 2018, up from 5.4 percent in the previous quarter but still down from 6.6 percent a year ago.

Home Flips Reach 3.5-Year Low

According to data from ATTOM Data Solutions, its Q3 2018 U.S. Home Flipping Report shows that a total of 45,901 U.S. single family homes and condos were flipped in the third quarter of 2018, down 12 percent from a year ago to the lowest level since Q1 2015 — a 3.5-year low.


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Homes flipped in Q3 2018 represented 5.0 percent of all single family home and condo sales during the quarter — down from a 5.2 percent home flipping rate in Q2 2018 and down from a 5.1 percent home flipping rate in Q3 2017 to the lowest level since Q3 2016.

“Home flipping acts as a canary in the coal mine for a cooling housing market because the high velocity of transactions provides home flippers with some of the best and most real-time data on how the market is trending,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “We’ve now seen three consecutive quarters with year-over-year decreases in home flips. The last time that happened was in 2014 following the mortgage rate jump in the second half of 2013, but it’s still far from the 11 consecutive quarters with year-over-year decreases in home flips extending from Q2 2006 through Q4 2008 and leading up to the last housing crash.”


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Homes flipped in Q3 2018 sold for an average of $63,000 more than what the home flipper purchased them for, down from an all-time high average gross flipping profit of $68,000 in the first quarter and down from an average gross flipping profit of $65,000 a year ago to the lowest level since Q2 2016.

The average gross flipping profit of $63,000 in Q3 2018 represented an average 42.6 percent gross flipping return on investment, down from an average 44.1 percent gross flipping ROI in the previous quarter and down from an average 48.1 percent gross flipping ROI in Q3 2017 to the lowest level since Q1 2012 — a 6.5-year low.


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The share of homes flipped that were sold by the home flipper between $100,000 to $200,000 made up 31.6 percent of all flipped sales, while those flip sales that occurred on homes sold for more than $5 million saw the highest gross flipping return on investment (ROI) of any price range.

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Equity Rich Properties Represent 25.7% Of U.S. Properties

ATTOM Data Solutions released its Q3 2018 U.S. Home Equity & Underwater Report, which shows that in the third quarter of 2018, nearly 14.5 million U.S. properties were equity rich — where the combined estimated amount of loans secured by the property was 50 percent or less of the property’s estimated market value — up by more than 433,000 from a year ago to a new high as far back as data is available, Q4 2013.


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The 14.5 million equity rich properties in Q3 2018 represented 25.7 percent of all properties with a mortgage, up from 24.9 percent in the previous quarter but down from 26.4 percent in Q3 2017.


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The report also shows more than 4.9 million U.S. properties were seriously underwater — where the combined estimated balance of loans secured by the property was at least 25 percent higher than the property’s estimated market value, representing 8.8 percent of all U.S. properties with a mortgage. That 8.8 percent share of seriously underwater homes was down from 9.3 percent in the previous quarter but still up from 8.7 percent in Q3 2017.


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“As homeowners stay put longer, they continue to build more equity in their homes despite the recent slowing in rates of home price appreciation,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “West coast markets along with New York have the highest share of equity rich homeowners while markets in the Mississippi Valley and Rust Belt continue to have stubbornly high rates of seriously underwater homeowners when it comes to home equity.”

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ATTOM Migrates Its Property Database To The Cloud

ATTOM Data Solutions and Managed Microsoft Partner Denny Cherry & Associates Consulting (DCAC) jointly announced the successful completion of a 50 Terabyte migration to Microsoft’s Azure platform. The engagement included:


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>>Consolidation of multiple legacy SQL Server databases

>>Migration to Azure

>>Conversion to SSIS catalogued project model

>>Sizing and choosing the correct VM for the Azure environment.


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Post migration, ATTOM Chief Technology Officer Todd Teta estimates the company is now saving 30% of their budget on infrastructure.

ATTOM’s Chief Data Officer Richard Sawicky commented, “We now have the flexibility to scale, expand, and consolidate all of our operations and be nimble as we take on new projects, new datasets, and better serve our customers on a modern platform capable of enrolling a lot of the Azure functionality.


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DCAC principal and Microsoft MVP Joey D’Antoni commented, “The ATTOM migration was quite challenging as there were lot of moving pieces. Richard and I worked really hard to ensure we had a solid checklist for migration, and outside of a single small error we saw immediately after migration, the process was seamless.”

“There were a ton of moving parts, and Joey D’Antoni and Denny Cherry were there to quarterback us through it all,” Sawicky added.  “There is no way that we would be sitting here 100% in Azure without those guys.”

U.S. Foreclosure Activity Increases 9 Percent In August 2018 From Previous Month

According to data from ATTOM Data Solutions, there were 70,166 U.S. properties with foreclosure filings in August 2018, up 9 percent from July but still down 7 percent from a year ago. Nationally one in every 1,910 U.S. properties had a foreclosure filing in August 2018, according to the report.

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States with the highest foreclosure rates in August were New Jersey (one in every 690 housing units); Maryland (one in every 918 housing units); Nevada (one in every 984 housing units); Delaware (one in every 1,012 housing units); and Florida (one in every 1,229 housing units).

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Among 291 metropolitan statistical areas with at least 200,000 people, those with the highest foreclosure rates in August were Atlantic City, New Jersey (one in every 354 housing units); Fayetteville, North Carolina (one in every 444 housing units); Trenton, New Jersey (one in every 546 housing units); Columbia, South Carolina (one in every 807 housing units); and Bakersfield, California (one in every 864 housing units).

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Among 53 metro areas with at least 1 million people, those with the highest foreclosure rates in August were Baltimore, Maryland (one in every 871 housing units); Philadelphia, Pennsylvania (one in every 887 housing units); Las Vegas, Nevada (one in every 891 housing units); Jacksonville, Florida (one in every 982 housing units); and Cleveland, Ohio (one in every 1,012 housing units).

Highest-Risk Cities for Floods, Hurricanes And Wildfires Underperformed Overall Market

ATTOM Data Solutions released its 2018 U.S. Natural Hazard Housing Risk Index, which found that median home prices in cities with the top 80th percentile for natural hazard housing risk have appreciated 40 percent on average over the last 10 years — 1.7 times the 24 percent home price appreciation in the overall U.S. housing market during the same time period.

For the report ATTOM indexed natural hazard risk in more than 3,000 counties and more than 22,000 U.S. cities based on the risk of six natural disasters: earthquakes, floods, hail, hurricane storm surge, tornadoes, and wildfires. ATTOM also analyzed housing trends in 2,616 cities and 440 counties — containing more than 53 million single family homes and condos — broken into five equal quintiles of natural hazard housing risk.

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“While combined natural disaster risk has not seemed to hobble home price appreciation over the past decade, the story is much different for some individual hazard risks — namely flood, hurricane storm surge and wildfire risk,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Home price appreciation in the overall U.S. housing market was double the rate of appreciation in cities with the highest flood risk and triple the rate of appreciation in cities with the highest hurricane storm surge risk over the past 10 years. The broader market has also outperformed appreciation in cities with the highest wildfire risk during the last decade, although the gap is much narrower.”

Foreclosure rates elevated in highest-risk flood cities

Foreclosure rates were lower in cities in the top 80th percentile for natural hazard housing risk, and this was true for all individual natural hazard risk types except for flood risk. In cities in the top 80th percentile for flood risk, active foreclosures represented 0.61 percent of all properties, well above the foreclosure rate of 0.38 percent across all risk categories.

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“Weather is the largest external swing factor in U.S. economics and accounts for over $550 billion per year in lost revenue and up to 76,000 lost jobs,” said Mark Gibbas, president and CEO at WeatherSource, a technology company that provides global weather and climate data along with advanced analytics. “Weather can have an enormous impact on homeowners and the housing market.  When big weather events such as hurricanes, tornados and hail hit, many homeowners suffer financial hardship from various sources such as lost wages and losses due to inadequate insurance. And while the impact on homeowners can be severe, hurricanes like Harvey can change the landscape of the housing market region wide, including shifts in the number of available homes and shifts in home values.”

Cities with the highest flood risk also posted seriously underwater rates (loan-to-value ratio of 125 percent or higher) above the overall market average — 8.9 percent of all homes with a mortgage compared to 8.5 percent nationwide. Tornado risk was the only other individual natural hazard risk factor with seriously underwater rates above the market average in the highest risk cities — 10.0 percent of all homes with a mortgage.

Buyers paid a premium for homes in highest-risk cities in 2018

The report also shows that homebuyers so far in 2018 paid an average 1.0 percent premium above estimated market value for homes in cities with the highest natural disaster risk while homes in cities with the lowest natural disaster risk sold at an average 3.7 percent discount below estimated market value.

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The exception to this trend was in cities with the highest flood risk, where homes sold at an average 2.4 percent discount below estimated market value, cities with the highest tornado risk (2.2 percent discount below estimated market value), and cities with the highest hurricane storm surge risk (1.4 percent discount below estimated market value).

Counties and cities with highest natural hazard risk index

Among the 2,616 cities analyzed in the report with sufficient housing trend data, those with the top 20 highest natural hazard housing risk indexes were all located in the following metropolitan statistical areas: Oklahoma City, Oklahoma; San Diego, California; Clearlake, California; San Jose, California; Madera, California; Riverside-San Bernardino, California, Bakersfield, California; Houston, Texas, Santa Cruz, California; and Huntsville, Alabama.

Among the 440 counties analyzed in the report with sufficient housing trend data, those with the highest natural hazard housing risk indexes were Oklahoma County, Oklahoma (Oklahoma City); Monroe County, Florida (Key West); Santa Cruz County, California (Santa Cruz); Santa Clara County, California (San Jose); and Marin County, California (San Francisco).

Among those same 440 counties, those with the lowest natural hazard housing risk indexes were Milwaukee County, Wisconsin (Milwaukee); Muskegon County, Michigan (Muskegon); Cuyahoga County, Ohio (Cleveland); Kenosha County, Wisconsin (Chicago metro); and Monroe County, New York (Rochester).

Index Methodology

For its fifth annual Natural Hazard Housing Risk Index, ATTOM Data Solutions indexed more than 3,000 U.S. counties and more than 22,000 U.S. cities based on risk of six natural disasters: earthquakes, floods, hail, hurricane storm surge, tornadoes and wildfires. ATTOM also analyzed home sales and price trends in 440 counties and 2,616 cities with sufficient property data.

A risk index was created for each of the six natural hazards in each city and count with natural hazard data available. Each natural hazard index was divided into five categories of risk: Very High, High, Moderate, Low and Very Low based on a severity scale. Those six natural hazard indexes were summed to create a Total Natural Hazard Index. The maximum index for each category of risk is 60, and the maximum possible total index score is 360.

For the home sales and price trends analysis, the indexes in 735 counties and 3,441 cities were split into five equal groups (quintiles) matching the aforementioned five categories of risk.

Flood zone data is based on flood zones created by the Federal Emergency Management Agency (FEMA), and the level of risk was based on the percentage of homes in each county located in high-risk flood zones: A, A99, AE, AH, A.

Earthquake data is from the United States Geological Survey (USGS), and the level of risk was based on the probability of a magnitude 5.0 earthquake in each county.

Tornado data is from the National Oceanic and Atmospheric Administration (NOAA), and level of risk was based on the Destruction Potential Index (DPI) for each county. DPI is calculated using number of tornados, path of tornados in square miles, and intensity of tornados on the Fujita scale (FO to F5).

Wildfire data is from the United States Department of Agriculture Forest Service and Fire Modeling Institute, and risk level is based on the percentage of homes in each county located in “Very High” or “High” Wildfire Hazard Potential (WHP) areas.

Hurricane storm surge data is from FEMA and the National Hurricane Center (NHC), and risk level is based on the percentage of homes located in flood zones identified as having a risk of “storm-induced waves”: V and VE.

Hail data is from NOAA and the risk level is based on the average number of hail storms per year in each county with hail that exceeds 1-inch in size over the past 15 years.

ATTOM Data Solutions Integrates Enhanced Boundary Data

ATTOM Data Solutions has integrated expanded boundary data into its U.S. property data warehouse. The expanded boundary data features parcel boundaries for 155 million U.S. parcels along with school attendance zone boundaries for more than 67,000 schools in more than 13,000 school districts and neighborhood boundaries for more than 166,000 neighborhoods.

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“Boundary data is a useful and often necessary complement to the foundational tax, deed, mortgage and neighborhood data in the ATTOM Data Warehouse,” said Rob Barber, CEO of ATTOM Data Solutions. “We’ve made some key strategic moves over the past few months to obtain the best boundary data available and fully integrate it into our data warehouse so that we can provide a one-stop shop for clients that want to combine these datasets.”

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The parcel boundary data is available in a bulk file format adhering to the industry standard ESRI shape data. ATTOM offers two versions of the parcel boundary data: An Essential version that includes the shape file data for the parcel boundaries along with basic tax assessor information for each parcel; and the Plus version with additional assessor information for each parcel including beds, baths, square footage, year built, lot size, most recent sale date and amount, and much more.

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“We’ve included basic assessor property data in our standard parcel boundary file because most use cases benefit from some level of assessor data,” said Todd Teta, chief technology officer at ATTOM Data Solutions. “We also include our unique ATTOM ID for every parcel so that additional data from the ATTOM Data Warehouse such as sales history, mortgage and foreclosure data, or natural hazard risk can easily be joined with the parcel boundaries.”

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Home Prices Less Affordable Than Historic Averages

ATTOM Data Solutions released its Q2 2018 U.S. Home Affordability Report, which shows that the U.S. home prices in the first quarter were at the least affordable level since Q3 2008.

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The report calculates an affordability index based on percentage of income needed to buy a median-priced home relative to historic averages, with an index above 100 indicating median home prices are more affordable than the historic average, and an index below 100 indicating median home prices are less affordable than the historic average.

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Nationwide, the Q2 2018 home affordability index of 95 was down from an index of 102 in the previous quarter and an index of 103 in Q2 2017 to the lowest level since Q3 2008, when the index was 86.

“Slowing home price appreciation in the second quarter was not enough to counteract an 11 percent increase in mortgage rates compared to a year ago, resulting in the worst home affordability we’ve seen in nearly 10 years,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile home price appreciation continued to outpace wage growth, speeding up the affordability treadmill for prospective homebuyers even without the rise in mortgage rates.”

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Home prices rising faster than wages in 64 percent of local markets

Nationwide the median home price of $245,000 in Q2 2018 was up 4.7 percent from a year, down from 7.4 percent appreciation in the first quarter but still above the average weekly wage growth of 3.3 percent. Since bottoming out in Q1 2012, median home prices nationwide have increased 75 percent while average weekly wages have increased 13 percent during the same period.

Annual growth in median home prices outpaced average wage growth in 275 of the 432 counties analyzed in the report (64 percent), including Los Angeles County, California; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.

Lowest home affordability indexes in Flint, Denver, Santa Fe, Nashville

Counties with the lowest home affordability indexes in Q2 2018 were Genesee County (Flint), Michigan (70); Denver County, Colorado (72); Adams County (Denver area), Colorado (73); Santa Fe County, New Mexico (73); and Wilson County (Nashville area), Tennessee (75).

Among 40 counties with a population of at least 1 million, those with the lowest home affordability indexes in Q2 2018 were Travis County (Austin), Texas (77); Alameda County (San Francisco area), California (81); Santa Clara County (San Jose), California (82); Oakland County (Detroit area), Michigan (82); and San Francisco County, California (83).

Highest share of income needed to buy a home in Bay Area, Brooklyn

Nationwide an average wage earner would need to spend 31.2 percent of his or her income to buy a median-priced home in Q2 2018, above the historic average of 29.6 percent.

Counties with median home prices requiring the highest share of average wage earner income were Marin County (San Francisco area), California (133.2 percent); Kings County (Brooklyn), New York (123.1 percent); Santa Cruz County, California (121.5 percent); Monterey County (Salinas), California (100.3 percent); and San Francisco County, California (97.2 percent).

Counties with median home prices requiring the lowest share of average wage earner income were Wayne County (Detroit), Michigan (13.5 percent); Clayton County, Georgia (13.7 percent); Rock Island (Quad Cities), Illinois (15.8 percent); Saginaw County, Michigan (16.4 percent); and Richmond County (Augusta), Georgia (16.4 percent).

Median home prices not affordable for average wage earners in 75 percent of local markets

An average wage earner would not qualify to buy a median-priced home in 326 of the 432 counties (75 percent) analyzed in the report based on a 3 percent down payment and a maximum front-end debt-to-income ratio of 28 percent.

Counties where an average wage earner could not afford to buy a median-priced home in Q2 2018 included Los Angeles County, California; Cook County (Chicago), Illinois; Maricopa County (Phoenix), Arizona; San Diego County, California; and Orange County, California.