As is evident by the articles on this blog, it’s no mystery that I’ve been a large proponent that real estate prices are exaggerate, that they have to fall. Well a new survey from PMI Mortgage Insurance Corporation shows that some of the US’s housing markets are increasing their chances for a price decline based on factors such as home prices, employment conditions, affordability, etc.
The study shows that more than one city has a higher than 50% chance of a price decline, cities such as Boston MA, Nassau NY, San Diego CA, San Jose CA, Santa Ana CA, Oakland CA. Actually, the national average is 21.3%!
The good news is that based on the article, the cities less likely to be affected by the bubble burst include cities such as Pittsburgh PA, Philadelphia PA, Indianapolis IN, Cincinnati OH, Columbus OH, Memphis TN, Nashville TN, San Antonio TX, and Seattle WA.
I was not able to find the details of how exactly they came up with these numbers, but they are interesting nonetheless.