MSN released some predictions from PMI Mortgage Insurance Company on risk factors in the Top 50 top U.S real estate markets. Like most forecasts, these should not be taken as gospel.
PMI Mortgage Insurance Co.'s new U.S. Market Risk Index tries to assess the future direction of markets across the U.S. by looking at recent price volatility, affordability... and employment, among other factors.
On average, there's a 34.6% chance that home prices will drop in the nation's top 50 markets in the next couple years, with many of the riskiest markets falling in areas that saw steep run-ups in prices in recent years, followed by decreased affordability and drops in the rate of appreciation.
The good news is that Texas cities like Austin, Dallas, Houston and San Antonio were not considered "risky" by comparison with Dallas fairing the worst. My opinion is that any market, in any area can be risky if the buyer makes risky decisions.
See them now! Price risk for the top 50 U.S. markets
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