PMI: Risk of Home Price Declines Rising

The risk of price declines over the next two years has increased in 36 of the nation's 50 largest housing markets, according to the latest PMI U.S. Market Risk Index.PMI Mortgage Insurance Co., the Walnut Creek, Calif.-based mortgage insurer that created the index, said markets with a greater than 50% chance of such price declines are Boston-Quincy (Mass.), at 553; Nassau-Suffolk (N.Y.), at 540; San Diego-Carlsbad-San Marcos (Calif.), at 528; San Jose-Sunnyvale-Santa Clara (Calif.), at 513; Santa Ana-Anaheim-Irvine (Calif.), at 512; and Oakland-Fremont-Hayward (Calif.), at 509. The index values mean, for example, that Boston has a 55.3% probability of experiencing a home price decline in the next two years. "The latest PMI Market Risk Index numbers show that house price risk continues to be concentrated along the coasts, as it has been for some time," said Mark Milner, chief risk officer of PMI Mortgage Insurance. "But what we are seeing with these numbers is that risk has increased in many noncoastal markets as well." PMI can be found online at http://www.pmigroup.com.