Where are U.S. Home Prices Most Likely to Drop?
The PMI Mortgage Insurance Co. has updated its 2007 U.S. Market Risk Index, ranking the 50 biggest metropolitan statistical areas by the likelihood that home prices will be lower in a couple of years.
Mark Milner, PMI’s chief risk officer, notes that the new risk model “gives more weight to the recent volatility of an area’s price movements” and underscores the point that homeownership should once again be widely regarded as “a long-term investment.”
The introduction of risk ranks, which group areas with consistent characteristics together, is one other feature of the newly enhanced index.
Ranking highest on the index are such markets as Riverside, Calif.; Phoenix; Las Vegas; and West Palm Beach, Fla.
On the other hand, Texas, Ohio, Indiana, and Pennsylvania MSAs made up the lowest ranked group — or those dealing with a less than 10 percent chance of declining home prices.
Source: Realty Times