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House-hunting clients may want to avoid these cities

Cooling home price appreciation and growing wages may seem like good signs for house-hunting clients, but home affordability plunged to a more than 10-year low in the fourth quarter, according to Attom Data Solutions.

Nationwide, Attom's Home Affordability Index flopped to a reading of 91, down 15% from a year ago and the lowest level since the third quarter of 2008. An index value under 100 indicates home prices are less affordable than the historic average, according to Attom.

What's more, many local markets are faring even worse than the national landscape. While it's true that many markets are seeing a slowing of home price gains as available inventory becomes more plentiful, many cities are treading close to housing bubble territory as price appreciation continues to outpace local wage growth.

With home affordability at a 10-year low across the nation, here's a look at the 12 cities most in danger of a housing bubble this year. The analysis, based on Attom data, evaluates counties with a minimum population of 100,000, at least 100 quarterly home sales and a median sales price above the national rate of $241,250. Counties are ranked by the gap between the annual increase in home prices and wages. Ties were broken by the lowest Affordability Index Value.

No. 12: Hilton Head Island-Bluffton-Beaufort, South Carolina (Beaufort County)
Median sales price: $306,750 (10%)
Annual wages: $38,649 (-1%)
Gap between growth in home prices and wages: 11 percentage points
Affordability Index: 95
NMN022119-hilton-head.jpeg
No. 11: Ogden-Clearfield, Utah (Weber County and Davis County)
Weber County:
Median sales price: $244,200 (13%)
Annual wages: $41,444 (2%)
Gap between growth in home prices and wages: 11 percentage points
Affordability Index: 77

Davis County:
Median sales price: $314,688 (13%)
Annual wages: $44,863 (3%)
Gap between growth in home prices and wages: 11 percentage points
Affordability Index: 81
NMN022119-ogden.jpeg
No. 10: Las Vegas-Henderson-Paradise, Nevada (Clark County)
Median sales price: $270,000 (13%)
Annual wages: $48,386 (2%)
Gap between growth in home prices and wages: 11 percentage points
Affordability Index: 82
NMN022119-las-vegas.jpg
No. 9: Midland, Texas (Midland County)
Median sales price: $291,000 (16%)
Annual wages: $71,643 (6%)
Gap between growth in home prices and wages: 11 percentage points
Affordability Index: 82
NMN022119-midland-odessa.jpg
No. 8: Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin. (Scott County)
Median sales price: $285,000 (13%)
Annual wages: $48,880 (1%)
Gap between growth in home prices and wages: 12 percentage points
Affordability Index: 88
NMN022119-minneapolis.jpeg
No. 7: Ann Arbor, Michigan (Washtenaw County)
Median sales price: $259,000 (14%)
Annual wages: $58,409 (2%)
Gap between growth in home prices and wages: 12 percentage points
Affordability Index: 83
NMN022119-ann-arbor.jpeg
No. 6: Washington-Arlington-Alexandria, D.C.-Virgina-Maryland.-W.V. (Stafford County)
Median sales price: $354,950 (15%)
Annual wages: $51,389 (2%)
Gap between growth in home prices and wages: 12 percentage points
Affordability Index: 96
NMN022119-washington-dc.jpeg
No. 5: Providence-Warwick, Rhode Island-Massachusetts (Kent County)
Median sales price: $245,000 (14%)
Annual wages: $48,035 (1%)
Gap between growth in home prices and wages: 13 percentage points
Affordability Index: 95
NMN022119-providence.jpg
No. 4: Hilo, Hawaii (Hawaii County)
Median sales price: $366,971 (15%)
Annual wages: $43,342 (2%)
Gap between growth in home prices and wages: 13 percentage points
Affordability Index: 85
NMN022119-hilo.jpeg
No. 3: Mount Vernon-Anacortes, Washington (Skagit County)
Median sales price: $338,000 (19%)
Annual wages: $48,256 (5%)
Gap between growth in home prices and wages: 13 percentage points
Affordability Index: 86
NMN022119-anacortes-wa.jpeg
No. 2: Columbus, Ohio (Delaware County)
Median sales price: $284,900 (17%)
Annual wages: $54,444 (2%)
Gap between growth in home prices and wages: 15 percentage points
Affordability Index: 87
NMN022119-columbus.jpg
No. 1: Flagstaff, Arizona. (Coconino County)
Median sales price: $340,000 (19%)
Annual wages: $42,653 (2%)
Gap between growth in home prices and wages: 17 percentage points
Affordability Index: 87
NMN022119-flagstaff.jpeg