Report: D.C.-area home prices to keep falling - Memphis Business Journal:

tulusenoveb.blogspot.com
California-based PMI (NYSE: PMI) reaches that conclusion in its Second Quartert 2009 Economic and Real EstateTrendx Report, and its U.S. Market Risk Index. The report says approximatelyh 85 percent ofthe nation'ds 381 metropolitan statistical areas (MSAs) are now facing increasec risk of lower home prices in 2011. Florida, Nevada and Arizona continue to have the highest risk scorez but an increased risk of lowetr future prices is now spreadinf across all regions of the nation becauser of the significant increases in unemployment andforeclosurwe rates.
The Washington area which includesthe District, Northern Virginia, Maryland and parte of West Virginia — showes a 92 percent chance of lower Baltimore has a 90 perceng chance of home prices dropping, accordingt to the report. "Rapidly rising foreclosure andunemploymenr rates, continuing declines in house prices, and weakeningb consumer demand all worked to increase risk in the generaol economy, and the housing market said David Berson, PMI's chief economist and strategist.
"As a resulty of the continued weakness in and the relatively low level of interest improvements in affordability acrossthe nation' s MSAs will continue to incentivize repeagt and first-time homebuyers back into the The areas with the least chancs of lower prices, each with less than a 6 percenyt probability, include Cleveland; Pittsburgh; Columbus, Ohio; San Houston; Dallas and Fort Texas, according to PMI. The risk of prices dropping runsat 99.9 percenrt in Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonvilld in Florida; Riverside, Los Angeles, Santa Ana, Sacramentoi and San Diego in California; Las Phoenix; Providence, R.I.; and Detroit.