“The report said as many as 85% of the country’s 381 metropolitan areas are facing an increased risk of lower home prices in 2011, with Florida, California and Nevada continuing to be at the highest risk.
Among the country’s 50 most populated metro areas, the PMI study showed 28 to be in the highest risk category, signaling the greatest probability for lower house prices by the first quarter of 2011.
The credit crisis was set off after the housing bubble deflated and popped – and that crisis only reinforced an extremely difficult dynamic in the housing market.”
The charts below are not at all encouraging:
US Home Prices, 1890-2009
Real Home Prices, 1890-2009
Year-Over-Year Change Home Prices, 2001-2009
Sources: U.S. Home Prices to Fall Through 2011’s First Quarter Dan Levy Bloomberg, July 7 2009 http://www.bloomberg.com/apps/news?pid=20601103&sid=aEwbzPfaEGw8
PMI Risk Index Shows US Home Prices Likely Lower In 2 Years Kerry Grace Benn, Dow Jones Newswires, JULY 7, 2009 http://online.wsj.com/article/BT-CO-20090707-708983.html
Originally published at The Big Picture and reproduced here with the author’s permission.