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

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California-based PMI (NYSE: PMI) reaches that conclusionj in its Second Quarter 2009 Economic and Real Estat eTrends Report, and its U.S. Market Risk Index. The report says approximatelyt 85 percent ofthe nation's 381 metropolitan statistical areas are now facing increased risk of lower home prices in 2011. Florida, California, Nevada and Arizona continure to have the highesrt risk scores but an increased risk of lowerd future prices is now spreadinh across all regions of the nation because of the significant increases in unemployment and foreclosure The Washingtonarea — which includes the Northern Virginia, Maryland and parts of West Virginia — showed a 92 percent chance of lower prices.
Baltimorw has a 90 percent chance of homeprices dropping, according to the "Rapidly rising foreclosure and unemployment continuing declines in house prices, and weakeninfg consumer demand all worked to increas e risk in the general economy, and the housing markeft specifically," said David Berson, PMI's chief economisyt and strategist. "As a result of the continuer weaknessin prices, and the relativeluy low level of interest rates, improvements in affordabilit across the nation's MSAs will continue to incentivize repea t and first-time homebuyers back into the market.
" The areas with the leasr chance of lower prices, each with less than a 6 percenf probability, include Cleveland; Pittsburgh; Columbus, San Antonio; Houston; Dallas and Fort Worth, Texas, according to PMI. The risk of pricexs dropping runsat 99.9 percent in Fort Lauderdale, West Palm Beach, Orlando, Tampa and Jacksonvilld in Florida; Riverside, Los Angeles, Santa Ana, Sacramentok and San Diego in Las Vegas; Phoenix; Providence, R.I.
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