| There has been a shift in the risk of home | | | | expectations of their properties |
| price reductions in the U.S. towards Florida | | | | appreciation. |
| and California and some areas of the | | | | |
| southwest, according to the PMI Mortgage | | | | The following are the top 15 metro areas that |
| Insurance Co.'s Summer 2007 U.S. Market Risk | | | | are likely to experience home price declines |
| Index. The index ranks the 50 largest | | | | in the next two years, with their group ranks |
| metropolitan statistical areas in the U.S. | | | | at the front, and scores at the end. |
| according to the risk of home price reduction | | | | |
| in the next two years. | | | | 1 Riverside-San Bernardino-Ontario, CA - 652 |
| | | | |
| On an average, the 50 MSAs scored 346, which | | | | 1 Phoenix-Mesa-Scottsdale, AZ - 646 |
| is 34.6 % possibility that home prices will | | | | |
| reduce in the next two years. The PMI risk | | | | 1 Las Vegas-Paradise, NV - 614 |
| index model has been updated this year with | | | | |
| the inclusion of the recent price volatility | | | | 1 West Palm Beach-Boca Raton-Boynton Beach, |
| in the market. Also this year's index | | | | FL - 607 |
| includes risk ranking where in MSAs with | | | | |
| consistent characteristics are grouped under | | | | 2 Los Angeles-Long Beach-Glendale, CA - 586 |
| the same rank. Thus we have Riverside, CA, | | | | |
| Phoenix, AZ, Las Vegas, NV, and West Palm | | | | 2 Santa Ana-Anaheim-Irvine, CA - 577 |
| Beach, FL group ranked on the top of the | | | | |
| index having about 60 % chance of home price | | | | 2 Oakland-Fremont-Hayward, CA - 572 |
| reductions in the next two years. Five MSAs | | | | |
| in California - Los Angeles, Santa Ana, | | | | 2 Orlando-Kissimmee, FL - 563 |
| Oakland, Sacramento and San Diego in | | | | |
| California, and four in Florida - Orlando, | | | | 2 Sacramento-Arden-Arcade-Roseville, CA - 560 |
| Fort Lauderdale, Miami and Tampa, feature | | | | |
| among the top 11 that face a home price | | | | 2 San Diego-Carlsbad-San Marcos, CA - 555 |
| decline of more than 50 %. | | | | |
| | | | 2 Fort Lauderdale-Pompano Beach-Deerfield |
| Home price appreciation rates have slowed in | | | | Beach, FL - 542 |
| almost all the 50 largest MSAs. The number of | | | | |
| MSAs that saw a home appreciation in the | | | | 2 Miami-Miami Beach-Kendall, FL - 524 |
| double digits in the first quarter of 2007 | | | | |
| has declined to five, way below last year's | | | | 2 Tampa-St. Petersburg-Clearwater, FL - 506 |
| 26. | | | | |
| | | | 2 Boston-Quincy, MA - 501 |
| Markets which have had a history of price | | | | |
| volatility are more likely to experience home | | | | 2 Washington-Arlington-Alexandria, DC-VA-MC - |
| price decline in the future, according to | | | | 500 |
| Mark F. Milner, PMI's Chief Risk Officer. | | | | |
| Still with all these going ons, it is not a | | | | Be sure to contact a local Realtor if you are |
| bad time to buy a home as a long term | | | | thinking about buying or selling a home, |
| investment as long as buyers pick their | | | | condo, or any other real estate. |
| mortgage package with care and have realistic | | | | |