| The risk of home price reductions across the U.S. has | | | | and Indianapolis in Indiana saw a slump in the job |
| been triggered by the year-over-year slowdown in | | | | growth rate. |
| the appreciation rate of home prices and a decrease | | | | The top 20 communities at risk for home price |
| in housing affordability, according to the PMI | | | | reductions and their risk scores are as follows: |
| Mortgage Insurance Co. The forecasts are based on | | | | 1.Sacramento-Arden-Arcade-Roseville, CA - 604 |
| PMI's Winter 2007 Market Risk Index report that lists | | | | 2.San Diego-Carlsbad-San Marcos, CA - 603 |
| out the communities which face the risk of home | | | | 3.Oakland-Fremont-Hayward, CA - 603 |
| price decrease in the forthcoming years. Several | | | | 4.Santa Ana-Anaheim-Irvine, CA - 602 |
| communities are at risk of home price reductions but | | | | 5.Nassau-Suffolk, NY - 601 |
| in areas that have strong economic fundamentals | | | | 6.Riverside-San Bernardino-Ontario, CA - 600 |
| such as low unemployment rates, good job growth | | | | 7.Los Angeles-Long Beach-Glendale, CA - 597 |
| and incomes, the risk of home price declines is much | | | | 8.Boston-Quincy, MA - 595 |
| lower. | | | | 9.Providence-New Bedford-Fall River, RI-MA - 595 |
| Out of 50 largest metropolitan statistical areas | | | | 10.San Jose-Sunnyvale-Santa Clara, CA - 592 |
| (MSAs), 34 have shown an increase risk of home | | | | 11.San Francisco-San Mateo-Redwood City, CA - 588 |
| price declines. The PMI U.S. Market Risk Index (SM) | | | | 12.Edison, NJ - 586 |
| average score increased consequently from 328 to | | | | 13.Fort Lauderdale-Pompano Beach-Deerfield Beach, |
| 342, raising the risk of home price decline in the next | | | | FL - 579 |
| 2 years to 34.2 %. The year-over-year appreciation | | | | 14.Washington-Arlington-Alexandria, DC-VA-MD-WV - |
| rate has slowed down in 43 of the 50 largest MSAs. | | | | 568 |
| The risk of home price decline went up to 50 % | | | | 15.New York-White Plains- Wayne, NY-NJ - 566 |
| from 18 % of last quarter in 19 MSAs with California | | | | 16.Cambridge-Newton- Framingham, MA - 563 |
| and the Eastern Seaboard facing the most risk. Eight | | | | 17.Las Vegas-Paradise, NV - 550 |
| of these MSAs are located in California, eight in the | | | | 18.Newark-Union, NJ-PA - 549 |
| Northeast and two in Florida. | | | | 19.Miami-Miami Beach- Kendall, FL - 535 |
| However, most MSAs are going strong on the | | | | 20.Baltimore-Towson, MD - 498 |
| economic front in terms of unemployment rates and | | | | If you are considering buying a home, condo or any |
| job growth with 46 out of the 50 MSAs recording | | | | other type of real estate, be sure to seek out the |
| employment growth. New Orleans topped the list of | | | | services of a local real estate agent to advise you |
| MSAs registering a positive job growth of 8.37 %. | | | | about real-time local market conditions. |
| Only Detroit and Warren in Michigan, Cleveland in Ohio | | | | |