The risk of falling house prices in the United States was caused by the sliding of the campaign to slow the pace of appreciation in housing prices and the reduced housing affordability, according to PMI Mortgage Insurance Co. The forecasts are based on the Winter 2007 PMI Market Risk Index report, which lists the communities at the risk of falling house prices in the coming years. Several communities are at risk for the original price cut, but in areas with strong fundamentals economic, such as low unemployment, good job growth and income, the risk of housing prices is much lower.
Of the 50 largest metropolitan areas statistical (MSA), 34 showed an increased risk of housing prices. The PMI U.S. Market Risk Index (SM), therefore higher mean score of 328 to 342, increasing the risk of decline in housing prices over the next 2 years to 34.2%. The year of the annual rate of appreciation slowed in 43 of the 50 largest MSAs.
The risk of declining home prices rose 50% from 18% in the last quarter with 19 service agreements administrative and the California coast faces the greatest risk. Eight of these MSAs are located in California, eight in the north and two in Florida.
However, the majority of MSA are difficult on the economic front, in terms of unemployment and job growth among 46 of the 50 record employment growth MSA. New Orleans tops the list of MSAS positive growth in employment of 8.37%. Only Detroit and Warren, Michigan, Cleveland, Ohio and Indianapolis, Indiana, has seen a fall in the rate of employment growth.
The first 20 at-risk communities to reduce housing prices and credit ratings are:
1.Sacramento-Arden-Arcade-Roseville, CA – 604
2.Without Diego-Carlsbad-San Marcos, CA – 603
3.Oakland-Fremont-Hayward, CA – 603
4.Santa Ana-Anaheim-Irvine, CA – 602
5.Nassau-Suffolk, NY – 601
6.Riverside San Bernardino-Ontario, CA – 600
7.The Angeles-Long Beach-Glendale, CA – 597
8.Boston-Quincy, MA – 595
9.Providence-New Bedford, Fall River, RI-MA – 595
10.San Jose-Sunnyvale-Santa Clara, CA – 592
11.SAN Francisco-San Mateo, Redwood City, CA – 588
12.Edison, NJ – 586
13.Fort Lauderdale-Pompano Beach, Deerfield Beach, FL – 579
14.Washington-Arlington-Alexandria, DC-VA-MD-WV – 568
15.New York Wayne White Plains, NY-NJ – 566
16.Cambridge-Newton-Framingham, MA – 563
17.The Vegas-Paradise, NV – 550
18.Newark Union, NJ-PA – 549
19.Miami Miami Beach, Kendall, FL – 535
20.Baltimore-Towson, MD – 498
If you are considering buying a house, condo or other property owned, be sure to seek the services of a local real estate agent to advise on conditions for local real-time market.
About the Author:
San Diego Homes
Article Source: ArticlesBase.com – Top 20 U.S. Communities At Risk For Home Price Reductions
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