Industry News

Riskiest real estate markets in coastal areas

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Thirteen real estate market areas have more than a 50 percent chance of falling house prices within two years, and eight of those areas are in California, three are in Massachusetts, one is in New York and one is in New Jersey, according to a quarterly report by PMI Mortgage Insurance Co., a subsidiary of The PMI Group Inc. Twenty-five metropolitan areas had increasing risk of price declines, compared to the previous quarter, while 20 had decreased risk, the PMI U.S. Market Risk Index also revealed. "Certainly the coastal markets have been the highest-risk markets pretty consistently, said Beth Haiken, a PMI Group spokeswoman. Some markets in Florida and the Washington, D.C., area have gradually climbed on the risk index list, she noted. Price appreciation from first-quarter 2005 to first-quarter 2006 has dropped into the single digits for three of the 10 top high-risk markets, including San Diego, 7.7 percent; Boston, 5.7 percent; and Providence, R.I., 9.5 percent. For the previous q...