According to the CoreLogic Market Health Indicator, most markets are still healthy with relatively low risk. However, 16 of the top 100 metros, including 10 in Florida, have high-risk markets.
Based on price-to-income, and price-to-rent measures, all 16 markets are overvalued. CoreLogic's data show that most of these markets have flipping and fraud ranked in the top quantile of all markets ranked. Florida's ten cities have an average fraud ranking of 15. The findings suggest a high risk of mortgage fraud, and short-term speculation, potentially leading to another bubble in those areas.
The number of high-risk markets has increased by six from Q2 to Q3 in this year. Besides the high price appreciation across many metro areas, flipping activities and fraud activities continue to pick up, signaling more short-term speculation and mortgage fraud, which should be closely monitored.
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