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Top 20 U.S. Communities At Risk For Home Price Reductions

The risk of home price reductions across the
U.S. has been triggered by the year-over-year2.San  Diego-Carlsbad-San  Marcos,  CA  - 603
slowdown in the appreciation rate of home
prices and a decrease in housing3.Oakland-Fremont-Hayward,  CA  -  603
affordability, according to the PMI Mortgage
Insurance Co. The forecasts are based on4.Santa  Ana-Anaheim-Irvine,  CA  -  602
PMI's Winter 2007 Market Risk Index report
that lists out the communities which face the5.Nassau-Suffolk,  NY  -  601
risk of home price decrease in the
forthcoming years. Several communities are at6.Riverside-San  Bernardino-Ontario, CA - 600
risk of home price reductions but in areas
that have strong economic fundamentals such7.Los  Angeles-Long  Beach-Glendale, CA - 597
as low unemployment rates, good job growth
and incomes, the risk of home price declines8.Boston-Quincy,  MA  -  595
is  much  lower.
9.Providence-New Bedford-Fall River, RI-MA -
Out of 50 largest metropolitan statistical595
areas (MSAs), 34 have shown an increase risk
of home price declines. The PMI U.S. Market10.San  Jose-Sunnyvale-Santa  Clara, CA - 592
Risk Index (SM) average score increased
consequently from 328 to 342, raising the11.San Francisco-San Mateo-Redwood City, CA -
risk of home price decline in the next 2588
years to 34.2 %. The year-over-year
appreciation rate has slowed down in 43 of12.Edison,  NJ  -  586
the  50  largest  MSAs.
13.Fort Lauderdale-Pompano Beach-Deerfield
The risk of home price decline went up to 50Beach,  FL  -  579
% from 18 % of last quarter in 19 MSAs with
California and the Eastern Seaboard facing14.Washington-Arlington-Alexandria,
the most risk. Eight of these MSAs areDC-VA-MD-WV  -  568
located in California, eight in the Northeast
and  two  in  Florida.15.New  York-White Plains- Wayne, NY-NJ - 566
However, most MSAs are going strong on the16.Cambridge-Newton-  Framingham,  MA  -  563
economic front in terms of unemployment rates
and job growth with 46 out of the 50 MSAs17.Las  Vegas-Paradise,  NV  -  550
recording employment growth. New Orleans
topped the list of MSAs registering a18.Newark-Union,  NJ-PA  -  549
positive job growth of 8.37 %. Only Detroit
and Warren in Michigan, Cleveland in Ohio and19.Miami-Miami  Beach-  Kendall,  FL  -  535
Indianapolis in Indiana saw a slump in the
job  growth  rate.20.Baltimore-Towson,  MD  -  498
The top 20 communities at risk for home priceIf you are considering buying a home, condo
reductions and their risk scores are asor any other type of real estate, be sure to
follows:seek out the services of a local real estate
agent to advise you about real-time local
1.Sacramento-Arden-Arcade-Roseville, CA - 604market conditions.



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