Yeah, my English isn’t so good.
Anyway, the PMI Group, which collects real estate data and makes risk assessments of real estate markets is out with their latest (quarterly?) report, ranking US cities most likely to experience a drop in housing prices.
The top riskiest cities are Santa Ana and San Diego, California, and Boston.
The index is determined in part by comparing income to home prices.
Or, in their words:
Forty-eight of the nation’s 50 largest metropolitan statistical areas (MSAs) face a greater risk of declining home prices this quarter, PMI Mortgage Insurance Co. (NYSE:PMI) announced today, but the continued strength of the national and local economies suggests that in the absence of an economic shock, the once red-hot housing market will cool gradually. Appreciation has slowed in nearly half of the MSAs as compared to last quarter. Affordability remains a problem with eight MSAs registering affordability levels considered low by historical standards, due to appreciation and higher interest rates.
My opinion? Whatever. They’re wrong in their analysis.
Source: Strong Economies Balance Increasing Risk of Home Price Declines, According to PMI Mortgage Insurance Co.’s Spring U.S. Market Risk Index; New PMI Research Demonstrates the Historical Value of Homeownership (press release from The PMI Group, by way of The Walk-through, The New York Times