PMI Mortgage Insurance Company released its Summer 2008 Market Risk Index (SM), which ranks the nation’s 50 largest metropolitan statistical areas (MSAs) according to the likelihood that home prices will be lower in two years. In general, risk continued to intensify in many of the MSAs where home price growth had significantly exceeded historical norms during the housing boom, but continued to decline in many other areas across the country.
The highest risk of future declines remains in Riverside-San Bernardino-Ontario, CA (95.5), followed by Fort Lauderdale-Pompano Beach-Deerfield Beach, FL (92.2) and West Palm Beach-Boca Raton-Boynton Beach, FL (91.9). The areas with the lowest risk of price declines are in Fort Worth-Arlington, TX, Dallas-Plano-Irving, TX, Pittsburgh, PA and Denver-Aurora, CO, each at less than one percent chance.
The risk of lower prices in two years declined in 35 of the nation’s 50 largest MSAs, and among all 381 MSAs, 326 experienced a decline in risk. Among the top 50 MSAs, 16 ranked in the two highest risk categories, and among those, 15 were in California, Florida, Nevada and Arizona. Risk of lower prices in two years is greater than 50 percent in all of these MSAs.
A complete copy of the Summer 2008 PMI ERET report and an appendix that provides data for all 381 MSAs is available at: http://www.pmi-us.com/eret.
Jim Slinkard
Broker/Owner
Keller Williams Realty DTC
303-771-7500
