PMI: Home Prices Could Be Lower in 2011

• July 8, 2009

by Mark Wellborn

Image courtesy of PMI Group

A report from mortgage insurer PMI Group shows that home prices may fall in many of the largest metropolitan areas in the U.S. (including the DC area) through the beginning of 2011.

According to the report, thirty of the 50 largest areas have at least a 75 percent chance of lower home prices through March 2011. The firm says that this is largely due to the rise in unemployment and foreclosure filings that the country has experienced in recent months.

The Washington area (including DC, Northern Virginia, Maryland and parts of West Virginia) showed a 92 percent chance of lower prices. For comparison, Baltimore has a 90 percent chance of home prices dropping, and New York City showed an 88 percent chance.

Fifteen areas in the country have a 99 percent probability of lower prices in 2011 including: Miami, Fort Lauderdale, West Palm Beach, Orlando, Tampa, Jacksonville, Riverside, Los Angeles, Santa Ana, Sacramento, San Diego, Las Vegas, Phoenix, Providence and Detroit.

5 Comments

1. Jim said at 11:42 am on Wednesday July 8, 2009:

   Refreshing to see some truth tellers out there.

1. Michelle said at 2:37 pm on Wednesday July 8, 2009:

   Is there anything out there that just includes DC and not the “metro area?”  I have to think home prices in the city proper are more stable than the suburbs.

1. Georgetowner said at 9:25 am on Thursday July 9, 2009:

   If you go to the PMI website, they have a list of what they consider “declining markets” by zip code or state.  Here’s the link: http://www.pmi-us.com/map/

1. Rob said at 10:27 am on Sunday July 12, 2009:

   Case-Schiller just reported the opposite and that home prices were ticking up.

1. Georgetowner said at 9:56 am on Monday July 13, 2009:

   Rob -

   link?