There has been a shift in the risk of home price reductions in the U.S. towards Florida and California and some areas of the southwest, according to the PMI Mortgage Insurance Co.'s Summer 2007 U.S. Market Risk Index. The index ranks the 50 largest metropolitan statistical areas in the U.S. according to the risk of home price reduction in the next two years.
On an average, the 50 MSAs scored 346, which is 34.6 % possibility that home prices will reduce in the next two years. The PMI risk index model has been updated this year with the inclusion of the recent price volatility in the market. Also this year's index includes risk ranking where in MSAs with consistent characteristics are grouped under the same rank. Thus we have Riverside, CA, Phoenix, AZ, Las Vegas, NV, and West Palm Beach, FL group ranked on the top of the index having about 60 % chance of home price reductions in the next two years. Five MSAs in California - Los Angeles, Santa Ana, Oakland, Sacramento and San Diego in California, and four in Florida - Orlando, Fort Lauderdale, Miami and Tampa, feature among the top 11 that face a home price decline of more than 50 %.
Home price appreciation rates have slowed in almost all the 50 largest MSAs. The number of MSAs that saw a home appreciation in the double digits in the first quarter of 2007 has declined to five, way below last year's 26.
Markets which have had a history of price volatility are more likely to experience home price decline in the future, according to Mark F. Milner, PMI's Chief Risk Officer. Still with all these going ons, it is not a bad time to buy a home as a long term investment as long as buyers pick their mortgage package with care and have realistic expectations of their properties appreciation.
The following are the top 15 metro areas that are likely to experience home price declines in the next two years, with their group ranks at the front, and scores at the end.
1 Riverside-San Bernardino-Ontario, CA - 652
1 Phoenix-Mesa-Scottsdale, AZ - 646
1 Las Vegas-Paradise, NV - 614
1 West Palm Beach-Boca Raton-Boynton Beach, FL - 607
2 Los Angeles-Long Beach-Glendale, CA - 586
2 Santa Ana-Anaheim-Irvine, CA - 577
2 Oakland-Fremont-Hayward, CA - 572
2 Orlando-Kissimmee, FL - 563
2 Sacramento-Arden-Arcade-Roseville, CA - 560
2 San Diego-Carlsbad-San Marcos, CA - 555
2 Fort Lauderdale-Pompano Beach-Deerfield Beach, FL - 542
2 Miami-Miami Beach-Kendall, FL - 524
2 Tampa-St. Petersburg-Clearwater, FL - 506
2 Boston-Quincy, MA - 501
2 Washington-Arlington-Alexandria, DC-VA-MC - 500
Be sure to contact a local Realtor if you are thinking about buying or selling a home, condo, or any other real estate.
- Related Videos
- Related Articles
- Ask / Related Q&A
REALTY DEMAND ON RISE
By: zameensantosh | 09/11/2009In what could be an indicator of realty sector reviving and demand for residential and commercial real estate bouncing back, over 10,000 potential buyers visited the three-day ET Realty Expo held at Pragati Maidan last week. The biggest catch for the visitors was not just wide option of residential properties, farm houses, plots, office complexes and commercial spaces offered by 42 reputed developers but also the participation of bankers, under one roof.
Finding The Garden Expert
By: Jonas Salk | 09/11/2009The first step is to decide what type of yard you have and how would you like to turn it into something aesthetically wonderful.
Mow, Mow, Mow Your Lawn
By: Jonas Salk | 09/11/2009Your lawn acts as an enormous air conditioner that helps cool your home specially during summer.
CHECKS AND BALANCES
By: zameensantosh | 09/11/2009A single regulatory body to monitor all the stakeholders of the real estate sector is a must to bring in transparency and professionalism of global standards, says Archana Sinha To bring the Indian property industry on par with the global real estate sector, the Indian parliament is gearing up to pass the much talked about real estate regulatory bill in the winter session.
Bringing Out The Best In Your Garden
By: Jonas Salk | 09/11/2009One of the more attractive landscaped gardens uses fountains to accentuate the pristine and mesmerizing flora and fauna.
My Dreams of Green
By: Jonas Salk | 09/11/2009Planning how aesthetically appealing your yard looks will need to begin with the big outdoor items.
The Work of A Landscaper
By: Jonas Salk | 09/11/2009One common means to achieve unity in the landscaping design is to utilize similar types of plants and trees in the garden.
The Other Side of Landscaping
By: Jonas Salk | 09/11/2009Aside from the aesthetic side of planning for a landscaping design of a garden, a typical good landscaper will also put into consideration the practical side of the project.
Top 5 Yard Upgrades To Increase Home Value?
By: Real Estate Advisor | 05/11/2007 | Real EstateThere are plenty of research on the influence of city trees and open spaces on property values especially in residential settings. With proper landscape improvements, the economic value of a home can be increased immensely. This article focuses on the hedonic valuation of city trees which would not only benefit...
Top 20 Real Estate Foreclosure Markets, Mid-Year 2007
By: Real Estate Advisor | 20/10/2007 | Real EstateStockton, California reported the highest foreclosure rate among the nation's 100 largest metro areas from Jan to Jun 2007, according to RealtyTrac, an online marketplace for foreclosure sales. Detroit and Las Vegas documented the next highest foreclosure rates. RealtyTrac's 2007 Midyear Metropolitan Foreclosure Market Report showed the foreclosure activity in...
Are Beachfront Homes For You?
By: Real Estate Advisor | 28/09/2007 | Real EstateWaterfront homes and seafront homes offer all the charms and attractions of a romantic idyllic living beside blue waters and are perhaps second to none. If you are someone looking to invest on a home with water views, near a beach, a lake or a bay, then it is good...
2007: Home Features That Buyers Want
By: Real Estate Advisor | 25/09/2007 | Real EstateExtra garage space emerged among the top home feature preferences of home buyers in the latest home buyer preference survey conducted by National Association of Realtors (NAR). The survey titled "2007 Profile of Buyers' Home Feature Preferences" brings to the forefront the changes that have taken place in home buyers' preferences...
Top 15 U.s. Cities With Likely Home Price Reductions
By: Real Estate Advisor | 20/07/2007 | Real EstateThere has been a shift in the risk of home price reductions in the U.S. towards Florida and California and some areas of the southwest, according to the PMI Mortgage Insurance Co.'s Summer 2007 U.S. Market Risk Index. The index ranks the 50 largest metropolitan statistical areas in the U.S....
Top 15 Cities With High Cost Of Living
By: Real Estate Advisor | 16/07/2007 | Real EstateMoscow, the Russian capital, is the most expensive city in the world for cost of living followed by London, UK and Seoul, South Korea in the second and third position. The findings are based on the annual Cost of Living Survey conducted by Mercer Human Resource Consulting. Moscow tops the...
Want To Live A Long Life? Top 10 States For Longevity!
By: Real Estate Advisor | 12/07/2007 | HealthTop 10 and Bottom 10 U.S. States Where People Live the Longest If you are looking to live to a ripe old age, then check out these top U.S. states where people are not only living longer but also better. Eons Inc. in its 2007 State of Longevity Report lists the...
Which U.S. Cities Are Most Green?
By: Real Estate Advisor | 09/07/2007 | Real EstateThe buzzword that is going around these days is 'green' - green homes, green building, green living etc. Here is the latest addition to the green world - the top 25 greenest cities in the U.S. These are cities that are more energy efficient and offer a living environment that...