Many Markets See Slower Home Price Appreciation but Economy Remains Strong
According to the PMI U.S. Market Risk Index, home price appreciation slowed in 32 of the nation’s 50 largest housing markets, and many markets face an increased chance of price declines.
The continued strength of the economy, however, bodes well for a “soft landing” of the nation’s housing market, according to Mark Milner, Chief Risk Officer of PMI Mortgage Insurance Co.
The median Risk Index value increased 25%, from 134 to 168, and there are now 11 markets with a greater than 50% chance of experiencing price declines, up from 5 last quarter. In the 50-percent bracket, San Diego, CA, now tops the list with a 58.8% chance of price declines, followed by Santa Ana, CA, Boston, MA, Long Island (Nassau-Suffolk), NY, Oakland, CA, Sacramento, CA, Riverside, CA, Providence, RI, Los Angeles, CA, San Jose, CA, and San Francisco, CA. Nationwide, there exists a 26.1% probability of an overall house price decline, as measured within the next two years and across the 50 largest housing markets, up from 21.8% last quarter.
Market Risk Index trends include:
– Las Vegas, NV, experienced the biggest change in Market Risk Index score since last quarter, gaining 221 points for a score of 418, up from 197 last quarter, and rising seven positions in the index.
– Because third quarter data reflects the initial impact of Hurricanes Katrina and Rita, New Orleans saw the biggest jump in position, rising 16 spots on the Risk Index to number 26.
– The five least risky areas are Nashville, TN, Cincinnati, OH, Indianapolis, IN, and Memphis, TN, with Pittsburgh, PA, last on the list with a score of 56, up two points from last quarter.
– Nineteen of the top 20 MSAs saw increases in their Risk Index scores. The exception is Detroit, whose score fell four points.
(Source: RisMedia)
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.
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