News, insight and some thoughts about the Sacramento-area real estate market

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July 1, 2008

Ouch! We're still number 10 for risk of declining prices

"Given the magnitude of the inventory overhang, we expect national home price declines to continue into at least 2009."
   David Berson, chief economist, PMI Mortgage Insurance Inc. (based in Walnut Creek)

 So here it is again, PMI Mortgage Insurance's newest quarterly report on declining home values. Not suprisingly, it  predicts that prices in the Sacramento metro area - El Dorado, Placer, Sacramento and Yolo counties - have an 82.2 percent likelihood of being lower two years from now.

The list of #1's on this list - cities most likely to see declines - is up to 15 now. Sacramento, at least is 10th on that list. For awhile in 2006 and into 2007 our dear capital was in the top five. Leading the pack now is Riverside-San Bernardino-Ontario, with a 95.5 percent chance of prices being less two years from now.

The complete report is here. Go to the bottom for the PDF files with all the statistics.

PMI (PMI US) is a subsidiary of the PMI Group Inc. (NYSE: PMI), which provides residential mortgage insurance to lenders, capital market participants and investors. Posted by Jim Wasserman, July 1, 2008 9:46 AM